The landscape of cable television services is undergoing a significant transformation as providers seek to adapt to changing consumer demands and advancements in technology. Motivated by various factors, cable providers are transitioning their infrastructure to:
- Free up capacity on coaxial cable for broadband services
- Expand TV offerings to areas not supported by traditional cable delivery
- Retire older technology
- Improve the overall service experience for consumers
These transitions involve careful consideration and require approaches that aim to balance the need for change while minimising the risk of customer churn. In this article, we will explore the motivations behind cable providers’ transitions, their approaches, and the strategies they utilise to reduce churn, ultimately enhancing the television viewing experience for consumers.
Cable providers have several reasons for transitioning their infrastructure, encompassing a range of benefits for both providers and their subscribers. Firstly, transitioning allows cable providers to free up valuable capacity on coaxial cables for broadband services, which are in high demand due to the increasing reliance on internet connectivity. In addition, shifting TV services to alternative delivery methods, such as fiber or fixed wireless access (FWA), allows providers to extend their reach to areas where traditional cable delivery is not supported, enabling a broader customer base to access television programming. Moreover, transitioning can allow providers to retire older technology, which may be costly to maintain or limited in its capabilities. This shift also enables cable providers to enhance their services for consumers, as it allows for the delivery of television programming to multiple different device types, catering to the diverse needs and preferences of modern viewers.
There are several approaches available to cable providers when transitioning, each with its own set of advantages and challenges. The “cap and grow” approach involves a gentle transition by offering the new TV technology only to net new subscribers or customers at risk of churn. This approach minimises the risk of triggering churn while controlling costs, as only customers who see value in the new service change and existing customers can continue using their older equipment for an extended period. However, it also means that retiring older equipment will be delayed. Another approach is active marketing, where providers actively promote the transition to customers, offering incentives to encourage them to switch. This approach also keeps the risk of subscriber churn low but faces similar challenges in terms of retiring older equipment as they wait for subscribers to switch. Some operators have taken a more aggressive transition approach but have included assistance to the consumer involving replacing cable set-top boxes with IP alternatives, often involving home visits and like-for-like replacements. This approach allows for the retirement of legacy systems and a faster transition timeline. There is a medium risk of triggering churn, and the cost of truck rolls for home visits can be high. Finally, some operators have taken a very aggressive transition approach, offering minimal assistance to the consumer, with some forcing customers to access services via an app only, eliminating the need for set-top boxes altogether. In some cases, with this approach, operators have told consumers their traditional service will no longer be available at a specific date, and access after that date is via an application on a consumer device only. This approach permits the retirement of legacy systems at the lowest cost, but it also carries a very high risk of triggering churn due to the drastic change imposed on customers.
| Transition Approach | Advantages | Disadvantages |
| “Cap and Grow” | · Low churn risk | · Very long time to retire older equipment · Very long time to free up capacity on cable |
| Active marketing | · Low churn risk | · Medium time to retire older equipment · Medium time to free up capacity on cable |
| Aggressive with assist | · Medium churn risk · Fast time to retire older equipment · Fast time to free up capacity on cable | · Higher cost |
| Aggressive without assist | · Fast time to retire older equipment · Fast time to free up capacity on cable | · High churn risk |
Cable providers can employ various strategies to reduce churn and retain satisfied customers during the transition. One practical approach is replicating the familiar model of traditional cable for consumers. This includes providing set-top boxes with intuitive remote controls that feature multiple buttons to replicate the type of remote-control navigation typical on a cable set-top box. It also helps if the set-top box offers a user experience (UX) that more closely resembles the traditional cable interface. By maintaining a sense of familiarity, customers will feel more comfortable with the transition and be less inclined to churn. Another strategy involves promoting the flexibility of streaming services. Cable providers can highlight the ability to stream content on multiple devices, allowing customers to enjoy their favorite shows and movies wherever they are and on whatever device they prefer. Additionally, emphasising new services like start-over/catchup features, voice control, and integrated search can entice customers by showcasing the added convenience and functionality of the streaming platform. By emphasising the benefits and features of streaming, cable providers can persuade customers to remain loyal and embrace the transition.
| Other Strategies to Assist Transition | Features | Subscriber Value |
| Replicate traditional cable | · Set-top boxes · Intuitive remote controls · UX mimics cable | Familiarity |
| Promote flexibility of streaming | · Watch on multiple devices · Value-add services (i.e., start-over, catch up, etc.) | Added convenience and functionality |
The motivation to transition how cable providers deliver services varies, and each approach has its own set of pros and cons. Regardless of the method, providers must implement an effective churn reduction strategy to navigate the transition process successfully and meet the changing preferences of modern television viewers. At Enghouse Networks, we recognise that each cable provider has unique requirements and goals, which is why we offer tailored solutions that simplify the transition, minimise costs, and eliminate risks. Our fully managed and cloud-hosted EspialTV solution enables providers to offer a wide range of flexible and compelling services without complexity. With our in-house team of UX experts, we provide the necessary support to ensure a seamless transition. Our goal is to empower cable providers and help them establish a strong presence in the ever-evolving landscape of next-generation TV services.
To learn more about transforming your TV offerings to boost customer loyalty, attract new subscribers, and create new revenue streams, contact us, and we’ll put you in touch with our TV experts.
