We realized some video starts were very profitable, but many actually cost money due to things like churn and bad debt. - Thomas Might, Cable ONE CEO
Wall Street, Manhattan, New York (PRWEB) May 09, 2016
SubscriberWise®, the nation's largest issuing consumer reporting agency for the communications industry and the leading provider of business rules and scoring technology in telecommunications, announced today that the company founder and CEO is on record confirming the remarks of Thomas Might, chief executive officer for Cable ONE. Mr. Might discussed the MSO's transformation in an interview with FierceCable and he included observations about unprofitable starts, churn, and bad debt. Weeks earlier, Howe delivered an in-depth presentation that included the subject of unprofitable starts to NTCA executives in Las Vegas (view Howe's NTCA presentation recorded live in high definition at the Tropicana Las Vegas hotel, April 8, 2016: http://subscriberwise.com/media/SubscriberWise.mp4 ).
Article source excerpt: FierceCable - April 25, 2016:
Fierce: Do you envision a day when Cable ONE is completely out of the linear video business? If so, how soon?
Might: Not in the near future. We made higher profits on video last year than we did four years ago, even though we have about half as many video customers. We realized some video starts were very profitable, but many actually cost money due to things like churn and bad debt. Once you solve that riddle and stop chasing the unprofitable starts just to report good video subscriber counts, you can actually make more money with far fewer customers. However, if the previously discussed video cost structure and programming rate increases continue, even the profitable video customers will eventually become unprofitable.
"I read with complete agreement the observations that Mr. Might offered to FierceCable," commented David Howe of SubscriberWise. "In addition to my role with SubscriberWise, I'm the active credit manager for MCTV. I've been employed with MCTV for 20 years as an operations manager and a credit manager. I understand the negative financial impact of non-pay churn and bad debt. I also understand the operational burdens skips and high risk prospects place on the MSO every day. These impacts are relentless and they must be strategically managed and contained.
"To understand the primary solution to the riddle, Cable ONE - along with virtually every leading NCTC operator in the nation, leverages the federally-compliant power of SubscriberWise to balance risk and reward. And although the evolution of an operator's credit process and deposit policy require significantly more thought and preparation from the standpoint of the initial system launch and agent training, the effort is utterly profound and the results are quantifiable with SubscriberWise," explained Howe. "Operators immediately see a remarkable improvement in sales with dramatically more profitable starts and rarely a disappointed prospect looking for offerings elsewhere.
"At MCTV we have more than 10 years of data to prove the benefits of SubscriberWise risk management," concluded Howe. "Our bad debt and equipment losses are near zero. Operational efficiencies are abundant. Agents sell smartly. And best of all, the customer service and experiences are enhanced dramatically."
"SubscriberWise has been fundamental to the elimination of virtually all bad debt and the recovery of virtually every single piece of customer premise equipment without jeopardizing our buy-in rate for new customers or upgrades," confirmed Robert Gessner, President of MCTV. "Maintaining that high level of performance is important to us."
About SubscriberWise (http://www.subscriberwise.com)
SubscriberWise employs enhanced Subscriber Level Segmentation technology to precisely identify credit challenged subscribers to ultra-high achievers to maximize sales and boost profits. By incorporating years of communications performance data and proprietary decision models, including FICO's latest analytic technology (FICO Score 9), SubscriberWise delivers unprecedented predictive power with a fully compliant, score driven decision management system. Combined with Red Flag compliance and operator-controlled rules, SubscriberWise analytics empower CSR's to instantly and accurately respond to payment and credit characteristics with appropriate options for every subscriber. With SubscriberWise, no subscriber request is ever denied because of credit risk factors.