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September 6, 2017 by Gabe Peterson

Turn the Threat of Lost Video Revenue into an Over-the-Top Opportunity

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I’m not sure if you’ve heard, but this over-the-top (OTT) video thing is becoming very popular. In July Netflix announced they now have 104M subscribers worldwide. According to Forbes, Netflix now has more subscribers than cable TV. The closest rival to Netflix on the streaming front (Amazon) has more than doubled their base in the past two years to 80M subscribers according to Business Insider. With this changing over-the-top environment, service providers continue to be challenged to identify new ways to monetize their subscribers’ insatiable desire for content.

Enter Columbus Telephone Company (dba Optic Communications) in Columbus, Kansas. Faced with the challenge of growing revenue, they developed a new service called Optic HUB. This innovative solution is sold on top of an existing video package to improve and enhance the video experience significantly. Optic HUB incorporates the subscriber’ OTT video services (Netflix, Amazon, Hulu, etc.) into one interface WITH their traditional video content. It allows the subscriber to stream video to any device, remotely control their DVR, and even use their mobile device (phone or tablet) as a remote.

According to Nick Saporito, Marketing/Customer Experience Manager at Columbus Telephone:

“Optic HUB is the convergence of traditional linear channels with OTT content. We feel this product gives customers a far better experience with Pay TV and OTT combined into one user interface.”

Nick felt they had a great product and now needed to determine who it should be sold to. He knew that not everyone in his subscriber base would be interested in this cutting-edge product, and wanted to maximize his return on marketing investment. By using data (yeah data!) from both the billing system and from Calix Cloud, Nick easily solved this problem.

“We pulled a report out of billing that consisted of all residential pay TV subscribers with our largest channel lineup. We then correlated this list against data from Calix Cloud to determine who routinely streamed content OTT. The narrowed list was then mailed a targeted offer to "HUB UP" their current bundle package to add Optic HUB for a small monthly surcharge,” added Nick.

Instead of blasting his entire subscriber base with an offer they likely wouldn’t be interested in, Nick used data and information to drive his campaign. The result? 37 percent of customers targeted with the campaign added Optic HUB to their service package. In a world where a 1 to 2 percent take rate on direct mail is considered acceptable, 37 percent is unheard of.

The right product, the right insight, and the right creative resulted in a phenomenal success for Columbus Telephone. Contact us to see how Calix Cloud can drive change in your business.