Tuesday, June 24, 2014

Bundles

If you are a cable MVPD, how do you compete with direct competition from LECs and DBS providers and indirect competition from broadband that is provided by your LEC competitors and from another business segment within your own firm?  The answer is: you bundle.  You make the substitute product a complement and you discount the “add-on” products so that the value of the package is appealing enough for the customer not to cut the cord.  This strategy has worked well up to this point.  Will it continue to do so or are customers getting tired of the “deal”?  


MVPD
Broadband
Telecom - Landline
Telecom - Wireless
Marketing
Cable
X
X
X

Double & Triple Play
Telco
X
X
X
X
Double & Triple Play
DBS
X



Partnerships
# competitors/market
4
2
2




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