Competitive Landscape Report February, 2013. 2 Bar/Restaurant Confidential and Proprietary FEBRUARY...
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Transcript of Competitive Landscape Report February, 2013. 2 Bar/Restaurant Confidential and Proprietary FEBRUARY...
Competitive Landscape Report
February, 2013
2
Bar/Restaurant
Confidential and Proprietary
FEBRUARY LEAD OFFER
NATIONAL OFFER PORTFOLIO
Available Packages Best Comparison to CXPTotal
Channels (HD) ESPN RSN One Year CostContract Lengths
Satellite
Commercial Xtra Pack (185/88) $79.99 for 12 mos; Free HD + SonicTap for 3 mos
(Promo) (video only)
6 options $19.99-259.99
CXP - Free for 5 mos (Promo); $120.99 (Std) 185 (88) 6 23 $1,000.88 0-2 years
$50/mo credit with purchase of Starter Core, ESPN add-on, and at least five additional
add-ons (Std) (video only)N/A
Starter + Entertainment, ESPN, Learning, News, Sports A & B,
Variety A, B, & C Add-ons -$126/mo (Promo); $176/mo (Std)
175 (56) 5 0 $1,512.00 1+ years
Cable
Basic Cable (LA) (55/8) - $56.95 (Std) (video only)
~ 4 options $47.60-87.80 Bars and Restaurants TV - $87.80/mo (Std)
72 (35) 8 1 $1,053.60 1-3 years
Sports & Entertainment Deluxe (150+/52) - $109.95/month (Promo) (video only)
5 options $29.95-189.95
Digital Deluxe - $109.95/mo (Std)150 (52) 4 1 $1,518.40 1-3 years
TV Select (DC) (130/42) - $39.99 for 24 months + 50% off installation if ordered
online or Free installation with 3-yr contract (Promo) (video only)
~ 3 options $24.50-71.40 Advanced TV - $74.29 (Std) 174 (61) 4 3 $941.48 1+ years
Optimum Entertainment (232/82) - $59.90 for 12 months (Promo) (video only)
1 option $94.95
Optimum Entertainment - $59.90 for 12 mos (Promo); $94.95 (Std) 232 (82) 4 5 $765.75 1+ years
10% off any package with double or triple play bundle (Promo) (2 or 3 play)
2 options $42-78
Expanded TV - $72.00 for 6 mos as part of 3 play (Promo); $80 (Std)
109-153(29-56) 2 2 $961.50 1+ years
Business Digital TV (150/54) - 10% off when bundled with voice (Promo) (2 play) 1 option $104.99
Business Digital TV – $94.49 with voice (Promo); $104.99/mo (Std) 150 (54) UNK UNK $1,280.88 0+ years
Fiber
Basic TV (25/0) - $5/month off for 24 months with triple play bundle Free Activation
(Promo) (3 play)32 options $19.99-149.99 Extreme HD - $74.99/mo (Std) 265 (65) 8 10 $1,049.86 0-2 years
Service not available for Bar/Rest, Bus/Pri View Only! Service not available for Bar/Rest, Bus/Pri View Only!
3
The Competitive Landscape:CXP vs. The Most Comparable Currently Advertised
$50.00 $60.00 $70.00 $80.00 $90.00 $100.00 $110.00 $120.00 $130.00 $140.00 $150.00 $160.00 50
75
100
125
150
175
200
225
250
275
300
325
Dish Time Warner Cable Cox Comcast Cablevision Charter
Bright House Verizon FiOS DIRECTV
Monthly Price Over 1st Year
Ch
ann
el C
ou
nt
AT&T U-Verse service not available for Bar/Rest
4
2-Year Cost Comparison
Costs include all costs associated with a new customer contract with a package comparable to Commercial XTRA Pack (EVO 1-100)Confidential and Proprietary
DIRECTV DISH Time Warner Cable
Comcast Cox Cablevision Charter Bright House Verizon FiOS
$3,596.76
$3,960.00
$3,603.60
$2,837.80
$3,517.82
$2,943.63
$3,646.20 $3,721.76
$4,729.01
Bar/Restaurant (Public): 2 HD Receivers + 2 mirrors = 4 Screens Total
2-Year Total Cost of Ownership
Comcast has a compelling TV offer for 4 outlets or less
5
2-Year Cost Comparison
Confidential and Proprietary
DIRECTV DISH Time Warner Cable
Comcast Cox Cablevision Charter Bright House Verizon FiOS
$4,316.76
$4,968.00
$3,771.00
$5,201.80
$3,628.82
$3,063.03
$3,957.00
$4,777.76
$5,448.65
Sports Bar (Public): 4 HD Receivers + 4 mirrors = 8 Screens Total
2-Year Total Cost of Ownership
No longer qualifies for $109.95 offer
6
Business/Private
Confidential and Proprietary
FEBRUARY LEAD OFFER
NATIONAL OFFER PORTFOLIO
Available Packages Best Comparison to Business Information
Total Channels (HD)
Included Outlets/ Additional Outlet
FeesOne Year Cost Contract
Lengths
Satellite
Business Information (45/12) - $29.99 for 12 months; Free HD + SonicTap for 3 mos
(Promo) (video only)
8 options$19.99-89.99
Business Information - $29.99 for 12 months (Promo); $42.99 (Std)
45 (12) 4 SD or 2 HD/$6.00
$468.88 0-2 years
$30/mo credit with purchase of Starter Core and at least six additional add-ons (Std)
(video only)N/A Starter Core Package + News+ Variety
B add-ons –$48/mo (Std )60 (10) 1/UNK $528.00 1+ years
Cable
TV Starter (PHX) (50/13) – $10/mo for 12 months with 1-year contract (Promo) (3 play)
~ 3 options $24.50-71.40
TV Select - $39.99 for 24 months + 50% off installation (Promo); $63.29
(Std)130 (42) 1/$10.00 $629.39 1+ years
Basic TV (35/0) - $20 off with triple play bundle (Promo)(3 play)
4 options$24.95-89.95
Info & Entertainment - $29.95 for 3 mos with 3 play (Promo); $44.95 (Std)
50 (15) 1/$9.25 $693.40 1-3 years
Basic Video (55/8) - $39.95 (Std)(Video only)
~ 4 options$39.95-99.70
Basic Video – $39.95 (Std) 55 (8) 1/$14.00 $625.39 1-3 years
10% off any package with double or triple play bundle (Promo)(2 or 3 play)
2 options $42-78
Basic TV Bus/Pri - $33.29 for 6 mos as part of bundle (Promo); $36.99 (Std)
43(11)
1/$10.95 $520.68 1+ years
Broadcast Basic (35/10) - $29.95 for length of contract (Std)(video only)
2 options$29.95-58.95
Broadcast Basic - $29.95/mo (Std) 35 (10) 0/$9.95 $406.35 1+ years
Business Digital TV (150/54) - 10% off when bundled with voice (Promo) (2 play)
1 option$104.99
Business Digital TV – $94.49 with voice (Promo); $104.99/mo (Std)
150 (54) 3/$4.99 $1,280.88 0+ years
Fiber
BV Basic (36/17) - $20/month (Std); Video service only, must be bundled with Internet
(2 play)
3 options$40-85
U-Verse Basic TV - $20/mo (Std) 36 (17) 1/$12.95 $240.00 0+ years
Basic TV (25/0) - $5/month off for 24 months with triple play bundle Free Activation (Promo)
(3 play)
4 options$19.99-89.99
Local - $19.99/mo (Std) 25 (0) 3/$19.99 $389.86 0-2 years
7
2-Year Cost Comparison
Confidential and Proprietary
DIRECTV DISH Time Warner Cable
Comcast Cox Cablevision Charter Bright House Verizon FiOS AT&T U-Verse
$1,341.76 $1,152.00
$2,250.79
$1,960.60
$2,212.75
$1,881.99
$2,280.36
$3,241.76
$1,209.26 $1,224.00
Business/Private: 2 SD Receivers; 2 Screens Total
2-Year Total Cost of Ownership
8
Quarter SnapshotDecember, 2012 – February, 2013
Confidential and Proprietary
THIS QUARTER IN REVIEW
The end of 2012 saw little change on the small business video front, however in January your competitors began to make adjustments to their product offerings.
DISH and Charter raised the standard pricing across their video offer portfolio, most likely in response to the raising programming costs viewed in 2012.
Comcast, TWC, and Comcast all stayed mostly the same from last quarter, but we did see all three weaken their offers by removing promotions that had been extended previously (Comcast, Cox) or decreasing the promotional values (TWC).
AT&T added functionality to their website that allows for customers to view U-Verse TV offers which will provide us with greater access to information moving forward. Also greater access for their customers.
At times this quarter, FiOS weakened their triple play offer by reducing the cash back promotional value from $200 to $100.
As you continue, this report will show that despite these changes, DIRECTV can still attack these offers to win and retain customers.
9
DIRECTVFebruary, 2013
Confidential and Proprietary
10Source: DTV Sales Guide 2/6/13; Website: 2/19/13
DIRECTV’s Bar & Restaurant Snapshot
Confidential and Proprietary
Premium
DIRECTV
Entry
Bar/R
est
Video Packages Features Contract
NamePromotional Price/
Standard PriceTotal Channels (HD)
# of Most Popular Customer Requested Channels*
ESPN RSNAdditional Promotion
Term
Commercial BasicNo Promo
30 (2) 0 0 0Up to two free SD
receivers24 Months
$19.99
Business Information
$29.99 for 12 mos w/ ABP 45 (12) 9 0 0
Free for 3 Months: HD Access and
Sonictap24 Months
$42.99
Commercial Choice (EVO 1-50)
$44.99for 12 mos w/ ABP 125 (48) 23 0 0
Free for 3 Months: HD Access and
Sonictap24 Months
$58.99
Commercial Entertainment Pack
(EVO 1-100)
$59.99 for 12 mos w/ ABP 96 (44) 23
ESPN, ESPN2, ESPN3D
0Free for 3 Months:
HD Access and Sonictap
24 Months$84.99
Comercial Mas Ultra
$59.99 for 12 mos w/ ABP 129 (38) 22
ESPN, ESPN2, ESPN Classic, ESPN
Deportes, ESPNews0
Free for 3 Months: HD Access and
Sonictap24 Months
$92.99
Commercial Xtra Pack
$79.99 for 12 mos w/ ABP 184 (88) 31
ESPN, ESPN2, ESPN3D, ESPN
Classic, ESPNews, ESPNU
26Free for 3 Mos HD
and Sonictap24 Months
$120.99
Commercial Choice Plus (EVO 101-150)
$189.99 for 12 mos w/ ABP
138 (53) 27
ESPN, ESPN2, ESPN3D, ESPN
Classic, ESPNews, ESPNU
0Free for 3 Months:
HD Access and Sonictap
24 Months
$259.99
DTV Insights:• Customers must have a two year contract and sign-up for ABP to get best
deals.*A count of the number of most requested channels as defined by DTV customers
11
DIRECTV’s Business & Private Snapshot
Confidential and Proprietary
Entry
DIRECTV
DTV Insights:• With no popular channels, Commercial Basic offers little value for both
SMB customers and employees.
Source: DTV Sales Guide 2/6/13; Website: 2/19/13
Premium
Bus/P
ri
Video Packages Features Contract
NamePromotional Price/
Standard PriceTotal Channels (HD)
# of Most Popular Customer Requested
ChannelsESPN
Included Outlets/ Additional Outlet
Fees
Additional Promotion
Term
Commercial BasicNo Promo
30 (2) 0 01 Up to two free SD
receivers24 Months
$19.99 $6.00
Office Information
$29.99 for 12 mos w/ ABP 47 (11) 10 0
1 Free for 3 Months: HD Access and Sonictap
24 Months$42.99 $6.00
Business Information
$29.99 for 12 mos w/ ABP 45 (12) 9 0
1 Free for 3 Months: HD Access and Sonictap
24 Months$42.99 $6.00
Office Entertainment
$44.99 for 12 mos w/ ABP 58 (32) 16 0
1 Free for 3 Months: HD Access and Sonictap
24 Months$66.99 $6.00
Business Entertainment
$44.99 for 12 mos w/ ABP 56 (30) 14 0
1 Free for 3 Months: HD Access and Sonictap
24 Months$66.99 $6.00
Comercial Mas Ultra
$49.99 for 12 mos w/ ABP 129 (38) 22
ESPN, ESPN2, ESPN Classic, ESPN
Deportes, ESPNews
1 Free for 3 Months: HD Access and Sonictap
24 Months$62.99 $6.00
Office Choice
$54.99 for 12 mos w/ ABP 142 (52) 30
ESPN, ESPN2, ESPN Classic, ESPNews,
ESPNU
2 Free for 3 Months: HD Access and Sonictap
24 Months$89.99 $6.00
Business Choice
$54.99 for 12 mos w/ ABP 174 (85) 30
ESPN, ESPN2, ESPN3D, ESPN
Classic, ESPNews, ESPNU
2 Free for 3 Months: HD Access and Sonictap
24 Months$89.99 $6.00
12
DISHFebruary, 2013
Confidential and Proprietary
13
Dish’s Bar & Restaurant Snapshot
Confidential and Proprietary
Premium
Source: Provider website. 2/19/13
Entry
Bar/R
est
Video Packages Features Contract
NamePromotional Price/
Standard PriceTotal Channels (HD)
# of Most Popular Customer
Requested ChannelsESPN RSN
Additional Promotion
Term
Starter + News Add-OnNo Promo
54 (4) 4 0 0 NA 24 Months
$34.00
Starter + Latino Popular and Latino Elite Add-
ons(Similar to Comercial
Mas Ultra)
No Promo 85 (3)Includes 41 Spanish language channels
3 ESPN Deportes 0 NA 24 Months
$48.00
Starter + Entertainment, Learning, News, Sports A & B, Variety A, B, & C
Add-ons(Similar to Commercial
Choice)
$116.00
170 (56) 20 0 0 NA 24 Months
$126.00
Starter + Entertainment, ESPN, Learning, News, Sports A & B, Variety A,
B, & C Add-ons(Similar to Commercial
Choice Plus)
$126.00
175 (56) 24ESPN, ESPN2, ESPN
Classic, ESPNews, ESPNU
0 NA 24 Months
$176.00
Starter + Learning + News+ Variety B +
ESPN + RSN add-ons(Similar to Commercial
Xtra Pack)
302.00140 (49) 24
ESPN, ESPN2, ESPN Classic, ESPNews,
ESPNU25 NA 24 Months
$352.00
DISH Insights:• Pricing model works best for customers with specific needs. However, there
is an additional $10/mo discount for customers who purchase 3+ add-on packages.
• ESPN channels can be added to any package for $50/mo• Customers can receive a $50/mo discount by buying the Starter Pack,
ESPN, and any 5 add-on packages.• Sports add-ons are comprehensive but expensive.
Bar/R
est
DISH
14
Dish’s Business & Private Snapshot
Confidential and Proprietary
Entry
DISH Insights:• Dish gets customers in the door with low sticker prices but then will try to up sell
customers to more add-ons.• Customers can get exactly what they want, without a lot of extras.• The cost of additional add-ons add up quickly.• Customers can receive a $30/mo discount by buying the Starter Pack and
any 6 add-ons.Source: Provider website. 2/19/13
Premium
Bus/P
ri
Video Packages Features Contract
NamePromotional Price/
Standard PriceTotal Channels (HD)
# of Most Popular Customer Requested
ChannelsESPN
Included Outlets/ Additional Outlet
Fees
Additional Promotion
Term
Starter + News Add-OnNo Promo
54 (4) 4 01
NA 24 MonthsUnknown$34.00
Starter + Latino Popular and Latino Elite Add-ons
No Promo 85 (3)Includes 41 Spanish language channels
3 ESPN Deportes (Included in Latino Elite)
1NA 24 Months
$48.00 Unknown
Starter + News, Variety A, Variety B Add-ons
(Similar to Business/Office
Information)
$50.00
81 (16) 8 0
1
NA 24 Months
$60.00 Unknown
Starter + Entertainment, Learning, Lifestyle, and
Variety A Add-ons(Similar to
Business/Office Entertainment)
$64.00
130 (37) 10 0
1
NA 24 Months
$74.00 Unknown
Starter + Entertainment, ESPN, Kids, Learning, Lifestyle, News, Sports
A, Variety A, B, & C Add-ons
(Similar to Business/Office Choice)
$130.00
200 (62) 30ESPN, ESPN2, ESPN
Classic, ESPNews, ESPNU
1
NA 24 Months
$160.00 Unknown
DISH
15
DISHDecember, 2012 – February, 2013
Confidential and Proprietary
Changes This Quarter
Dish increased the rate of their standard core package and the rates on the following video add-ons during January: Learning, Lifestyle, Latino Popular, Sports A, Variety B, Variety C, ESPN, Fox Soccer, and Fox Soccer Plus.
Of these packages ESPN ($5/mo) and the sports packages Fox Soccer and Fox Soccer Plus saw the greatest increases. The other packages increased by $2/mo
How to Compete
In February 2011, Dish CEO Joseph Clayton committed to not raising prices until January 2013. Rates have likely increased now due to higher programming costs, but with most add-ons only increasing by $2/mo, Dish’s strategy of getting customers in with a low price and then up selling them to higher priced services (i.e. more and more expensive add-on packages)
The cost of additional add-ons add up. DISH provides a great value to customers looking for just one or two add-ons. After that, customized plans can get expensive, even with discounts up to $30/month for Bus/Pri and $50/month for Bar/Rest.
To match CXP in just sports programming, a DISH customer would need to spend over $300/month in add-ons!
DISH seems to follow a “bottom-up” approach by encouraging customers to buy only as much add-ons as needed. Their marketing is aimed at the small customers not at the number of channels and sports they offer.
However, for customers looking for 3 or more add-ons, in most cases DIRECTV has an offer that has more channels at a better price. In fact, the promotional rates of all of DIRECTV’s Bus/Pri offers (except Choice) are lower than the customized Dish package.
16
COMCASTFebruary, 2013
Confidential and Proprietary
17
Comcast’s Bar & Restaurant Snapshot
Confidential and Proprietary
Premium
COMCAST
Comcast Insights:• Pricing is by flat rate, not by seating occupancy, EVO, or FCO. Comcast
really starts to tip the balance in their favor on seating occupancies 200+.• Sports and Entertainment Deluxe is Comcast’s ultimate package for large
Bar/Rest however promotional pricing is only available to customers with up to 4 outlets.
Source: Provider website. 2/19/13
Entry
Bar/R
est
Video Packages Features Contract
NamePromotional Price/
Standard PriceTotal Channels (HD)
# of Most Popular Customer
Requested ChannelsESPN RSN
Additional Promotion
Term
BasicNo Promo
35 (2) 0 0 040% off every
additional outlet over the first 8
12 Months
$29.95
Digital Basic PlusNo Promo
50 (15) 8 0 040% off every
additional outlet over the first 8
12 Months
$54.95
Digital StandardNo Promo
80 (22) 20 ESPN, ESPN2 Local RSN40% off every
additional outlet over the first 8
12 Months
$84.95
Digital DeluxeNo Promo
150 (52) 28ESPN, ESPN2,
ESPNews, ESPNULocal RSN
40% off every additional outlet over
the first 812 Months
$109.95
Sports and Entertainment
Deluxe
$109.95150+ (52) 29
ESPN, ESPN2, ESPN Classic, ESPNews,
ESPNULocal RSN
40% off every additional outlet over
the first 824 Months
$189.95
18
Comcast’s Business & Private Snapshot
Confidential and Proprietary
Entry
COMCAST
Comcast Insights:• Comcast’s Information and Entertainment package provides little value
with only 5 Popular channels and a $44.95 price point; compare to Business/Office Information that has twice the popular channels.
• Comcast incentivizes customers to accept two and three year contracts by providing discounts on installation.
Source: Provider website. 2/19/13
Premium
Bus/P
ri
Video Packages Features Contract
NamePromotional Price/
Standard PriceTotal Channels (HD)
# of Most Popular Customer Requested
ChannelsESPN
Included Outlets/ Additional Outlet
Fees
Additional Promotion
Term
Basic
$4.95 for 3 mos when bundled
35 (0) 0 0
0 40% off every additional outlet over
the first 812 Months
$24.95 $9.25
Information and Entertainment
$29.95 for 3 mos when bundled
50 (15) 5 0
1 40% off every additional outlet over
the first 812 Months
$44.95 $9.25
Standard
$59.95 for 3 mos when bundled
80 (22) 20 0
140% off every
additional outlet over the first 8
12 Months
$74.95 $9.25
Preferred
$74.95 for 3 mos when bundled
150 (52) 23ESPN, ESPN2,
ESPNews, ESPN Classic
1
40% off every additional outlet over
the first 812 Months
$89.95 $9.25
19
COMCAST December, 2012 – February, 2013
Confidential and Proprietary
Changes This Quarter
Comcast has continued to extend their Sports & Entertainment Deluxe for $109.95/mo with 2-year agreement (standard $189.95) promotion to the end of the respective month.
Comcast has removed their promotion offering $10/mo off when ordered online.
How to Compete
By removing their $10/off promotion, the only discount Comcast offers for Bar/Rest is on their most expensive package: $109.95/mo for Sports & Entertainment Deluxe.
Comcast’s offer of Sports & Entertainment Deluxe for $109.95/mo is a great deal that beats the standard price of DIRECTV’s Commercial Xtra Pack.
Only available to customers with up to 4 outlets, limiting its effectiveness (Bar/Rest)
By practically giving away its Basic TV service (just $4.95/mo) when bundled, Comcast hopes that they can convince customers to upgrade to a more expensive service after the 3 month promotional period.
DIRECTV’s 12-month promotions provide a better deal than Comcast’s 3-month discounts across the board over a one year period.
Comcast’s Digital Standard and Digital Deluxe weakness is their sports programming as CXP and Commercial Choice Plus both offer more ESPN and RSN channels. Customers can upgrade sports offerings for $34.95/mo (a 41% and 32% price increase respectively), but at that rate DIRECTV’s CXP is a better value. (Bar/Rest)
20
COX COMMUNICATIONSFebruary, 2013
Confidential and Proprietary
Unlike most companies in the SMB commercial space that generally keep their pricing and plans consistent across their footprint, Cox operates on a regional structure. Across these regions Cox may offer different plans, pricing, and/or promotions.
In the following tables for Cox, the median price across all markets is used, except in cases where a specific market’s price/promotion is called out, and all channel counts are shown as a range across all markets.
21
Cox’s Bar & Restaurant Snapshot
Confidential and Proprietary
Premium
COX
Cox Insights:• Advanced TV is the only offer customers can purchase add-on services such as a movie,
variety, or sports add-ons.• Free HD programming across all markets and offers compared to 3 months Free HD with
DTV.
Source: Provider website. 2/19/13
Entry
Bar/R
est
Video Packages Features Contract
NamePromotional Price/
Standard PriceTotal Channels (HD)
# of Most Popular Customer
Requested ChannelsESPN RSN
Additional Promotion
Term
Starter
PHX - $10 for 12 mos when used to
complete a triple play27-70 (0-22) 0 0 0
Free HD (All), Free installation when
bundled with Internet and voice (PHX)
12 Months
$24.50
Select
DC - $39.99 for 24 mos
CLE - $40 for 24 mos80-143 (0-57) 21 ESPN, ESPN2 2
Free HD (All), 50% off Installation when
ordered online (DC)24 Months
$60.50
Advanced
No Promo
151-201 (56-83) 21
ESPN, ESPN2 (ESPNU and ESPN
Classic w/Sports and Info Pak)
2 Free HD (All) 24 Months
$74.02
22
Cox’s Business & Private Snapshot
Confidential and Proprietary
Entry
COX
Cox Insights:• High channel counts at relatively low prices.• Starter is an even worse value than Commercial Basic outside of PHX• No offer to compete with Business/Office Information.
Source: Provider website. 2/19/13
Premium
Bus/P
ri
Video Packages Features Contract
NamePromotional Price/
Standard PriceTotal Channels (HD)
# of Most Popular Customer Requested
ChannelsESPN
Included Outlets/ Additional Outlet
FeesAdditional Promotion Term
Starter
PHX - $10 for 12 mos when used to
complete a triple play27-70 (0-22) 0 0
1 Free HD (All), Free installation when
bundled with Internet and voice (PHX)
12 Months
$24.50 $10.00
Select
DC - $39.99 for 24 mos
CLE - $40 for 24 mos80-143 (0-57) 21 ESPN, ESPN2
1Free HD (All) 50% off
Installation when ordered online (DC)
24 Months
$60.50 $10.00
Advanced
No Pomo
151-201 (56-83) 21
ESPN, ESPN2 (ESPNU and ESPN
Classic w/Sports and Info Pak)
1
Free HD (All) 24 Months
$74.02 $10.00
23
COX COMMUNICATIONS December, 2012 – February, 2013
Confidential and Proprietary
Changes This Quarter
On 01/01/2013 Cox’s latest promotions expired. As a result the following promotions were either added or extended:
Cleveland (Added) – TV Select is available for $40/mo for 24 months w/ 2 year agreement (standard price is $55.95)
D.C. (Extended) – Receive 50% off installation when TV Select is ordered online with a two year agreement or free installation with a three year agreement.
Phoenix (Extended) – TV Starter is available for $10/mo for 12 months plus free installation when added to Cox Internet and voice (standard price is $25.95/mo). Requires a minimum 1-year contract.
D.C. (Extended) – TV Select is available for $39.99/mo plus get one month free with a 2-year contract (standard price is $63.29).
The above promotions all show an expiration date of 04/01/2013
D.C. – Cox previously included their Sports & Info Pak ($5.25/mo) with Advanced TV, this has now been removed.
How to Compete
For the first time since year, Cox is not offering an Advanced TV promotion in at least one of their markets. With the promotion Cox was a clear price leader for that offer level but that advantage is now gone.
Cox is showing new interest in their TV Select Plan. At the $40/mo promotional price TV Select is an attractive offer especially for Bus/Pri. DTV’s advantage is in the customers ability to configure their plan through add-ons, Cox only allows this type of configuration with their Advanced TV offer.
Cox’s biggest weakness is their below average ESPN, RSN, and alternative sports programming (Speed, Outdoor Channel, league specific channels, etc…) included in their offers.
Cox includes free HD access on all their plans, and there is currently no difference between their private and public offers.
24
TIME WARNER CABLEFebruary, 2013
Confidential and Proprietary
Unlike most companies in the SMB commercial space that generally keep their pricing and plans consistent across their footprint, TWC operates on a regional structure. Across these regions TWC may offer different plans, pricing, and/or promotions.
In the following tables for TWC, the median price across all markets is used, except in cases where a specific market’s price/promotion is called out, and all channel counts are shown as a range across all markets.
25
TWC’s Bar & Restaurant Snapshot
Confidential and Proprietary
TWC Insights:• TWC attracts customers by including 8 ESPN channels and with
a reasonable price.• Low overall channel count based on price• 10% and 20% discounts for customers who select 2 or 3-year
contracts respectively.Source: Provider website. 2/19/13
Video Packages Features Contract
NamePromotional Price/
Standard PriceTotal Channels (HD)
# of Most Popular Customer
Requested ChannelsESPN RSN
Additional Promotion
Term
BasicNo Promo
55-75 (8-14) Unknown Unknown Unknown NA 36 Months$47.60
StandardNo Promo
110-167 (50-60) Unknown Unknown Unknown NA 36 Months67.60
DigitalNo Promo
225-314 (65-86) Unknown Unknown Unknown NA 36 Months85.30
Bars and Restaurants TV
No Promo
72 (35) 16
ESPN, ESPN2, ESPN Classic, ESPNews,
ESPNU, ESPN Deportes, ESPN Goal Line, ESPN
Buzzer Beater
Local RSN(s) NA 36 Months
$87.80
TWC
26
TWC’s Business & Private Snapshot
Confidential and Proprietary
Entry
TWC
TWC Insights:• TWC has segmented its offers to cater towards specific customers.• At least one ESPN channel is included with every package.• 10% and 20% discounts for customers who select 2 or 3-year contracts
respectively.Source: Provider website. 2/19/13
Premium
Bus/P
ri
Video Packages Features Contract
NamePromotional Price/
Standard PriceTotal Channels (HD)
# of Most Popular Customer Requested
ChannelsESPN
Included Outlets/ Additional Outlet
Fees
Additional Promotion
Term
Digital News Tier
No Promo
29 (11) 8 ESPNews
1
NA 36 Months
$40.80 $14.00
Business Advantage
No Promo
34 (16) 10 ESPNews
1
NA 36 Months
$48.30 $14.00
Healthcare TV
No Promo
68 (32) 18 ESPN, ESPN2, ESPNews
1
NA 36 Months
$73.30 $14.00
Prime Cable TV
No Promo
86 (43) 19 ESPN, ESPN2, ESPNews
1
NA 36 Months
$73.30 $14.00
27
TIME WARNER CABLE December, 2012 – February, 2013
Confidential and Proprietary
Changes This Quarter
TWC increased the promotional rate on their running triple and double play promotions:
Triple Play Promotion (was $99.99): NY: 7 Mbps Internet, Unlimited Tri-state calling, and Digital News
Tier TV for $109.98/mo with 1-yr contract.
Double Play Promotion (was $99.95 for both services): Cleveland, Dallas, and LA: 10 Mbps Internet for $99.95/mo +
Business Class phone for $29.95/mo when bundled with 3-yr contract.
NY (Added Since Last Quarter): $39.99 per service per month for 7 Mbps Internet + Unlimited phone with 1-yr contract.
How to Compete
With TWC focused on voice and Internet, DIRECTV customers have the opportunity to combine DTV service with TWC double plays for a comparable price and more channels than a traditional TWC triple play (see chart).
For businesses with multiple TVs, DIRECTV’s price advantage on outlet fees adds up to big savings for the customer (a savings of $8/outlet/month). E.g. a business with three TVs would be saving ~ $288/year just on outlet fees by switching to DTV.
TWC Bars and Restaurants TV offers a very compelling option to bars and restaurants not looking for sports add-ons like NFL Sunday Ticket. However, CXP’s promotional price is still less expensive over the first year. CXP also offers more RSNs and “popular” channels.
Comparing DIRECTV to TWC
in NY
TWC – $109.98 Triple Play
DIRECTV – Business
Information + TWC Double Play
Internet Downstream Speed
7 Mbps 7 Mbps
Phone Tri-State Calling Tri-State Calling
Total Channels 29 45
HD Channels 11 12
Monthly Price $109.98 $109.97
28
CHARTER COMMUNICATIONSFebruary, 2013
Confidential and Proprietary
29
Charter’s Bar & Restaurant Snapshot
Confidential and Proprietary
Premium
CHARTER
Charter Insights:• Charter’s offers a 10% discount to customers who bundle.• Charter offers a limited sports selection (2 ESPNs, local RSNs) however,
sports programming can be increased with Sports View add-on (3 ESPNs).• Sports View add-on is available for $89/mo.
Source: Provider website 2/19/13
Entry
Bar/R
est
Video Packages Features Contract
NamePromotional Price/
Standard PriceTotal Channels (HD)
# of Most Popular Customer
Requested ChannelsESPN RSN
Additional Promotion
Term
Basic
$39.60 for 6 mos w/ bundle
37-74 (8-15) 0 0 0Save 50% on
installation when bundled
12 Months
$44.00
Expanded
$72.00 for 6 mos w/ bundle
109-153 (29-56) 20
ESPN, ESPN2 (ESPN Classic, ESPNews, ESPNU available w/ Sports View add-on)
2Save 50% on
installation when bundled
12 Months
$80.00
30
Charter’s Business & Private Snapshot
Confidential and Proprietary
Entry
CHARTER
Charter Insights:• Expanded TV offers a large number of “popular” channels at a low monthly charge; however
Basic TV offers little value despite relatively high channel counts.• Charter is strongly focused on their phone & Internet double play and offer discounts to
customers who bundle with TV.• Sports View add-on is available for $89/mo.
Source: Provider website. 2/19/13
Premium
Bus/P
ri
Video Packages Features Contract
NamePromotional Price/
Standard PriceTotal Channels (HD)
# of Most Popular Customer Requested
ChannelsESPN
Included Outlets/ Additional Outlet
Fees
Additional Promotion
Term
Basic
$33.29 for 6 mos w/ bundle
37-74 (8-15) 0 0
1Save 50% on
installation when bundled
12 Months
$36.99 $10.95
Expanded
$53.99 for 6 mos w/ bundle
109-153 (29-56) 20
ESPN, ESPN2 (ESPN Classic, ESPNews, ESPNU available w/ Sports View add-on)
1Save 50% on
installation when bundled
12 Months
$59.99 $10.95
31
CHARTER December, 2012 – February, 2013
Confidential and Proprietary
Changes This Quarter
Charter has simplified their online shopping cart and have removed the option to select between basic and expanded TV, however both options are confirmed to still be available.
Mystery shopping has revealed that Charter has increased all offer pricing by $2/mo as follows:
Private – Basic TV: $36.99/mo from $34.99/mo Private – Expanded TV: $59.99/mo from $57.99/mo Public – Basic TV: $44/mo from $42/mo Public – Expanded TV: $78/mo from $80/mo
How to Compete
Charter’s price increase on its TV packages is most likely due to rising programming costs. With this increase, the one year cost of CXP ($846.93) is now lower than Expanded TV ($866.40) while offering a lot more value. In addition, Business Choice has more “popular” channels for still about the same price (Bus/Pri).
Basic TV offers nearly no value; Business Information offers more for about the same price and Commercial Basic offers the same for nearly $30 less per month
DIRECTV has a clear advantage on equipment fees. Consider a customer that needs 4 HD receivers. Over the first year, with DIRECTV that customer would pay $198; with Charter, that customer would pay $778.20 just on receivers!
Charter still discounts Internet when purchased with just voice (so it can still be taken advantage of if a customer bundles Charter voice and Internet with DTV video).
32
VERIZON FIOSFebruary, 2013
Confidential and Proprietary
33
Verizon FiOS’s Bar & Restaurant Snapshot
Confidential and Proprietary
Premium
FiOS
FiOS Insights:• Offers EVO pricing for Bars and Restaurants.• Customers who do not bundle and/or request a no contract option are
faced with high activation and installation fees.• Extreme HD has high channel counts and market leading ESPN options.
Source: Provider website. 2/19/13
Entry
Bar/R
est
Video Packages Features Contract
NamePromotional Price/
Standard PriceTotal Channels (HD)
# of Most Popular Customer
Requested ChannelsESPN RSN
Additional Promotion
Term
Local(Not Contingent on
EVO)
No Promo25 (0) 0 0 0
Free FiOS TV activation with any
FiOS bundle (a $99.99 value)
24 Months
$19.99
Extreme HD(EVO 1-50)
No Promo265 (65) 15
ESPN, ESPN2, ESPNU, ESPN Buzzer Beater,
ESPN Goal Line, ESPN Classic, ESPN Deportes,
ESPNews
10
Free FiOS TV activation with any
FiOS bundle (a $99.99 value)
24 Months
$149.99
34
Verizon FiOS’s Business & Private Snapshot
Confidential and Proprietary
Entry
FiOS
FiOS Insights:• FiOS is currently marketing their Internet and Phone double play with a $200
Visa prepaid card.• FiOS has high set-up costs when ordered without a contract; their equipment
fees are slightly higher overall than DIRECTV’s.
Source: Provider website. 2/19/13
Premium
Bus/P
ri
Video Packages Features Contract
NamePromotional Price/
Standard PriceTotal Channels (HD)
# of Most Popular Customer Requested
ChannelsESPN
Additional Promotion
Included Outlets/ Additional Outlet
FeesTerm
Local
No Promo
25 (0) 0 0
Free FiOS TV activation with any
FiOS bundle (a $99.99 value)
3
24 Months
$19.99 $19.99
Prime HD
No Promo
170 (42) 14 ESPN, ESPN2, ESPNU
Free FiOS TV activation with any
FiOS bundle (a $99.99 value)
3
24 Months
$64.99 $19.99
Extreme HD
No Promo
265 (65) 15
ESPN, ESPN2, ESPNU, ESPN Buzzer Beater,
ESPN Goal Line, ESPN Classic, ESPN Deportes,
ESPNews
Free FiOS TV activation with any
FiOS bundle (a $99.99 value)
3
24 Months
$74.99 $19.99
Ultimate HD
No Promo
330 (82) 15
ESPN, ESPN2, ESPNU, ESPN
Buzzer Beater, ESPN Goal Line, ESPN Classic, ESPN
Deportes, ESPNews, ESPN 3D
Free FiOS TV activation with any
FiOS bundle (a $99.99 value)
3
24 Months
$89.99 $19.99
35
VERIZON FiOSDecember, 2012 – February, 2013
Confidential and Proprietary
Changes This Quarter
Verizon FiOS weakened their triple play offer during last quarter by reducing the cash back promotional value from $200 to $100. Recently, FiOS increased the cash back amount back to $200, this deal expires on 3/16/2013.
How to Compete
DTV customers who add CXP to FiOS’s “Solutions Business” Internet and phone bundle come out on top compared to a VZ FiOS triple play with Extreme HD
When not bundling, FiOS customers will have to pay high installation and activation fees.
VZ charges slightly more for additional outlets and additional HD receivers. For large establishments, these costs can add up fast.
For Verizon all additional outlets, public or private, cost $19.99/mo.