Cord cutting has unfortunately become an inescapable reality for broadband operators. There’s just no easy way around the issue. Over-the-top content delivery services have disrupted the television market, and operators are being forced to address it in order to stay afloat.
The fight to retain customers may be on, but it’s definitely winnable. Here are three things that your business can do to push back and drive the revenue you need:
Offer fewer advertisements: One of the major reasons why customers ditch traditional pay TV service in favor of Web-based content services like Netflix and Hulu is that they are tired of having to sit through long and unwanted advertisements. Advertisements, though necessary, break up programs and interrupt the viewing experience. While we by no means suggest you abandon advertisements altogether, you can change your approach and offer less. Or, you can get creative and change your delivery model. Many major networks—like Fox and Time Warner—are now doing this in an effort to retain customers.
Bundle your services: The majority of customers aren’t looking to completely sever their ties with pay TV. Many choose over-the-top (OTT) content services to supplement their existing service, or because they’re looking for added flexibility. You can meet them halfway by offering skinny bundles with fewer channels. Try offering a customizable bundle, and let them select the channels they want in a la carte fashion. They will appreciate the added selection.
Lower your monthly prices: We advise our customers to avoid raising the price of video, as it will just add fuel to the fire and convince customers to invest in OTT content. Leave your video prices alone and instead focus on raising your broadband Internet prices. Profit off of customers who are using a great deal of bandwidth.