Cable a Monopoly? Don't Make Me Laugh!

This is a story about a few dozen people who wake up in the morning and get ready to go to work, just like everyone else.  Specifically,these folks are responsible for the products and services that their company provides to its customers.  They work for Insight Communications.

Before they get to their desks, they've already checked out what's going on in their world.  How much of an installation discount is Dish offering?  Is DSL increasing their maximum speeds?  What kind of response is AT&T having to our unlimited long distance, feature-rich phone service?

The fact is that cable companies are operating in the most intensely competitive environment that they ever have.  Our customers have a choice with every service we offer.  We live and breathe competition every single day.  We offer great value with our attractive bundles, more reliable service than ever, faster speeds than anyone else in our markets.  Why?  Not because we're simply good guys (although we are), but because we respect the forces of competition.

Yet, people across the land don't seem to understand how competitive our world really is.  Indeed, not too long ago, I viewed a focus group where we were interviewing 10 of our customers.  The focus group was being held right after we announced a modest annual increase in our basic video rate.  After hearing some pretty good reactions about the service they were receiving from us, the interviewer asked them how they felt about how much they were paying us. 

One customer quickly expressed his unhappiness with our decision to raise the benchmark basic rate.  He accused us of raising our rate every year (that was pretty much true).  He ranted on that we did this because we didn't have any competition.  Others joined in, nodding in total agreement.  Then he went on to say that if we kept raising our rates every year because we had no competition, he would consider defecting and going to satellite.

I stood there in disbelief. 

What was I missing? 

We raised rates because we "didn't have any competition" and if we kept doing it, he would "go buy a satellite dish." 

Alas, another painfully clear example of how regular people don't connect those the dots that cable is a highly competitive business.

We fight these competitive battles every single day on multiple fronts.  I grew up in the cable industry and watched it transform itself from what was essentially a monopoly into this highly competitive business.  And I see close up that customers are the beneficiaries as we focus intensely on improved service, faster speeds, more channels, and greater value.  In a market-driven business, companies that don't understand competition don't do as well as those who have institutionalized a competitive spirit deeply into their culture. 

We certainly understand that at Insight.  Indeed, last year we gained over 45,000 basic video customers despite the intense competition. 

Good for us and good for you.

Comments

[melissa wilson]

Have been an insight customer for over 10 years. Have all three services offered, paying over $180 per month for them.
Sat next to a girl at work and heard her bragging about her insight bill only being $120 per month for the first 12 months.
As a long time customer I feel very cheated.
So get the new customer in and make the current loyal customers carry the weight and pay more so the new can have a great deal?
I emailed insight the same as I am typing here and got a response saying we may be able to put you into another campaign to lower your rates for 12 months.
Why not offer that deal without a complaint to keep me using the service?
Imagine the ammount of quiet customers who will never be offered "new campaign" prices they have.
I feel if there is a better deal on the service your customer has then offer it to them, keep them happy and as a customer.
Dont wait til they figure out they are getting ripped off they offer a great deal.
Bad business and I dont need cable that bad.
More choices out there from honest companies anyway

[David Crowell]

Dave,

I understand your frustration with lack of HD content on Insight. I watch little TV, and canceled my Insight service, except for the broadband.

I bought a $70 outdoor antenna, and watch OTA HD. I also have a home theater PC for other content, but I don't have a monthly bill for TV anymore. Just whatever content I choose to pay for.

Satellite may have more HD choices, but honestly, there isn't enough HD content out there yet. I love my new HDTV, but it has actually caused me to like TV even less :)

So yeah, more on-topic, Insight isn't truly a monopoly. For most people, there are many other choices. They are only a monopoly in the sense of stringing coaxial cable to your house.

[Ernie]

Dave, your comment about cable being a "shared service" is one I have seen all over the net, and for some reason it has always bothered me.

The truth is, the entire Internet is a shared service, and every single ISP shares bandwidth among its customers. It's more a matter of where the sharing occurs, than whether it occurs.

Have a read over at http://www.dslreports.com/faq/7135 for some more information on the subject.

Also, I'm not sure about where you are, but in my house, I have Starz On-Demand HD which usually has a decent little selection of movies on-demand for no additional charge in HD, and I think they're rolling out more channels that way soon. I watched Bee Movie just the other day on it.

That's not counting all the paid On-Demand movies, either. As companies go all-digital, more bandwidth opens up for all sorts of cool things.

[ARGO]

It is a monopoly mandated by local government.

That means when another cable company comes in there turned around and sent back home.

I remember insight was taken to court when another company wanted access and Insight said no... This was on local news for one day then disappeared with no follow up.

[Dave Wallace II]

I wish you would change the Louisville system to all digital like RCN in Chicago. But wait before you think everyone we need an overpriced DCT box Just make the “Classic and Basic” Clear QAM Channels.

The reason I say this is because I switched over to dish network about a month ago. The reason I switched was my cable bill with insight was over $170 and I was only getting like 15 HD Channels. Dish network just added 22 more channels on May 12 which include CNBC-HD (Sweet).

I kept the basic service and HBO and Showtime for the on demand feature. I would have kept the cable modem however insight would not give me the $30 per month price instead something like $44.95 No problem I just order a Naked DSL with AT&T for only $23.95 per month (Half the Price of insight) and no tax they have a special ten dollars off any Naked DSL Package forever.

It makes me mad that in my mind you are trying to become an ISP and Voice provider more than your bread and butter which is video. Your Phone service is a good deal (Unless you hook up with Magicjack). Your internet is the fastest however since it’s a shared network you guys get pretty pissed off if you upload 5GB per day.
The way I look at this is I just spent $2,000 dollars on a 1080p LCD and I want HD channels. I don’t care about 10X the choice of satellite because of on demand (ITS NOT HDTV). I want HDTV I don’t care about phone service (In the next 5 years it will be almost free) Companies like SKY-Angel have an IPTV service now. Wait what about AT&T U-verse which will be in Louisville sometime. They have the fast internet speeds like you also have phone service like you and they have more HD then you oh and then also have the quad play (wireless).

I hope to see Clear QAM Channels soon the cost of your DVR at $15.95 per month seems like a rip-off to me. (Yes I know you can get a cable card I don’t what one I want Clear QAM)
Best Regards
Dave