Cablevision's future as a communication company maybe on the rise after introducing new tiered packages for the modern customers. Company also snags a deal with HBO Now.
Cablevision System's looking to cut the cable cord while still maintaining television viewership. Part of that change is the company's deal with HBO to show HBO Now's streaming subscription to non-cable customers. An offer that Comcast and Verizon have not embraced.
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“As a connectivity company, Cablevision is reimagining its relationship with its customers,” announced Chief Operating Officer Kristin Dolan. "Our new ‘cord cutter’ packages take a modern approach to traditional triple-product bundles and provide real alternatives that fit new consumer lifestyles."
And the actions make sense as more and more people leave cable television and phone plans. Customers are able to watch TV shows online with streaming services, like Hulu and Netflix, which means paying for unused channels seems wasteful when the trimming budget in a still recovering recession.
Cablevision introduced a tiered model designed to fit in most budgets. In the "Cord Cutter" package, customers receive Optimum Online Ultra 50 and above speeds, a complimentary digital antenna with over-the-air broadcast TV, and unlimited WiFi for 1.1 million Optimum hotspots for a starting package of $44.90 a month. However, as with all incentives, that only goes for the first year.
In the "Everyday Low Price" package, customers will receive speeds up to 5 Mbps download, Freewheel (Cablevision's all WiFi voice service with unlimited data, talk and text), a complimentary digital antenna, and access to the 1.1 million WiFi spots for only $34.90 per month. And both can access HBO Now.
Now for the catches. The modem lease fee per month is $4.95 for each package. To access the Freewheel service, customers must purchase a Motorola Moto G smartphone for $99.95 first. Oh, and those digital antennas are limited in supply and location.
In financial news, The Street rated Cablevision’s stock on hold due to fact "growth in the company's earnings per share has not been good." Grading it a C, the company also sees "little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks."
While the stock prices have risen, there hasn't been enough balance to really rate a sell or buy. The report came out as Cablevision's stock was up 5.78% and closed at $19.47 on Thursday, April 22. At 7.3% below industry standard, the bottom line has slowly grown in the 3.0% rise from the same quarter in 2014. But work still must be done in order to improve and inspire more market movement.
Even though the American cable television company is to implement changes and increase profits, there are still some hurdles to step over first. Perhaps rebranding the idea to a new generation of customer will help.
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Sources: BusinessWire, The Street