Rapid changes in the video business are causing smaller cable companies, who have historically relied on RF and HFC technologies, to evaluate new IPTV options. Customers are demanding digital services like Whole Home DVR, Restart TV, and smartphone and tablet applications, which are best enabled through IPTV. Increasingly smaller cable companies are making the transition.
One recent example is Huntsville, Arkansas based Madison County Telephone (MCT), who recently upgraded their network to FTTH and transitioned their legacy cable network to IPTV. The transition has been welcomed by MCT subscribers.
“Some of the most hesitant customers are now our biggest promoters as they have been able to see the improved quality over the RF service,” says MCT’s Scott Hamby. “The feedback has been overwhelmingly positive and everybody loves the Weather App and the better quality picture that they receive.”
After careful evaluation of all of their options, MCT decided the move to an APMAX IPTV platform made the most sense for their customers and delivered the features and user experience they demanded. The operational benefits including better quality, improved efficiency, and smooth integration are added bonuses.
It’s a process many other small cable companies are undertaking. Innovative Systems is a trusted partner in helping small cable companies make the IPTV transition. With over 1,200 deployed Voice, Video and OSS systems in nearly every U.S. state and Canadian province, Innovative Systems understands the needs and requirements of small community-focused service providers.
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4 thoughts on “Smaller Cable Companies See Benefits in Transition to IPTV”
Our small cable company just got out of the video business entirely. Rather than switching to an IPTV platform with all the expense of servers and other infrastructure, we ditched all video services in favor of getting the fastest internet pipe we could possibly afford and provide data service to our customers so that THEY can utilize it for whatever video services they want to use, no limits, whatever channels they want to watch. It was the smartest decision we have ever made in our 34 years as a cable company, both operation-wise and profit-wise. We will never look back.
I would appreciate the opportunity to have a discussion with you. We are over 50 years in cable and the programming expenses are eating us up. Can you give some idea of how much coax and how much fiber as well as your advertised rates. We continue to lose cable customers, yet our programming expenses continue to increase. 912.632.3112
Ted, our company was in the same boat as you. But we took the plunge to IPTV anyway about 3 years ago. While we were initially in the red, last Jan 1 we had a $15/month rate increase which moved us to the black. And we lost ZERO customers (out of 500 total subs) because of the rate increase. I believe a carefully crafted letter to customers explaining the rising cost of programming expenses was the reason no customers were lost. Plus we try to provide lots of local content. All I'm saying is that while TV isn't easy, it also doesn't need to be a loss leader. We're still competitive with the satellite providers.
Thanks mikeyb. We increased $10/mo and used two months of separate careful explanations bolstered by the satellite companies statements to SEC of averaging over $800/customer acquisition costs and approx. $100/mo arpu to try to ward off having customers suckered by the constant $29/mo ads.