If You’re Not Profiting From Content, You Need to Profit From Broadband

Right now cable operators across the U.S. are all asking the same question: Due to rising interest in TV Everywhere solutions, how are we supposed to make any profits?

It’s a tough question because when consumers invest in TV Everywhere, they are spending more money on over-the-top services like Netflix and Hulu and less on traditional cable packages.

What’s the solution to this problem? Cable operators need to make money from broadband services instead. The one benefit that cable operators have from TV Everywhere, after all, is that consumers are using much more data on a daily basis; each feature-length movie download, for instance, adds network strain. Therefore, broadband needs to be sold at a premium rate to make up for losses stemming from cord-cutters.

To maximize profits from broadband service, however, requires understanding exactly where and when consumers are utilizing the network. With the help of a cloud-billing service, cable operators will have a much easier time understanding utilization rates and offering flexible packages. For instance, providers could charge based on the time of day, the type of file being downloaded, or the frequency at which files are being downloaded.

The days of offering traditional monthly service packages are quickly coming to an end, as consumers use the Internet to obtain the entertainment they desire. Click here to learn more about how Great Lakes Data Systems can help you retain your profits.