Commentary

Will Legacy Cable TV Start Bigger Dollar Promotions For Streaming Bundles?

Cable TV-focused communications companies -- those that sell mobile, broadband, and video TV network packages -- just upped the ante for pursuing consumers. 

Charter Communications is offering consumers up to $2,500 to switch to Spectrum Mobile. 

So I wonder what type of deal Charter -- or other similar companies -- will offer when it comes to hard-pressed businesses such as streaming packaging of networks or their big broadband businesses? 

The cable TV-based company says the $2,500 comes when covering the cancellation costs of other phone/communication and wireless companies long-term contracts with consumers who have multiple phone lines as part of those packages.

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The goal for Charter is pushing new growth for business -- which is what mobile is currently for traditional cable TV-based distributors.

Charter has added nearly 500,000 mobile consumer lines -- up 36% from a year ago to 8.3 million.

Still, could traditional cable TV-based distribution companies find new businesses -- or possibly new outgrowth for their existing cable TV business --- that could be another promotional incentive area for consumers to consider?

Last year, Charter made a groundbreaking deal where in addition to continued carriage/distribution deal for TV networks owned by Walt Disney, it could also sell and package streamer platforms including Disney+, Hulu, ESPN+, and a new digital version of the full-fledged ESPN mothership cable TV network.

In reality, this can be trickier for a promotional attachment because the streaming platform marketplace is a more mature business, and it is more difficult to carve out big promotional deals for individual streaming platforms.

But there could be some promotional consideration for legacy cable TV distributors when it comes to bundling of new video services.

Bundling streaming platforms may have a higher price tag attached that consumers would not like -- perhaps $50 or even $70 a month for a collection of four or five streamers, for example, depending on the option. 

Over the course of a year, this could amount to $600 to $700. Could a distributor of such a streaming package offer $100 or thereabouts in promotional savings -- if a consumer commits to the package for a year, for example?

This would work for those streamers and bundlers if there was a clear sign of more expensive streaming business growth -- perhaps in new forms and bundles that could be forthcoming.

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