Cable operator reduces digital churn to 1.5%
Offering its customers interactive TV has not only increased their monthly spend, but has also decreased the churn rate.
One of the largest cable operators in the US, Insight Communications, has found that its interactive TV offering has helped reduce digital churn by a third and has increased revenue by an average of 20% per customer.
Rather than wait, like many companies, for advanced set-top boxes before rolling out interactive digital services, Insight opted for the currently available, cost-effective, Motorola DCT-2000. It ran Liberate Technologies' TV Navigator Compact software in the set-top box and Liberate Connect software on the servers at the head-end, and launched Insight Digital. The TV Navigator Compact software makes it possible to integrate a number of powerful applications into a lower-capability set-top box.
One in three penetration Insight's research shows that not only do customers like the interactive services, but employees find them easy to sell. Insight's digital churn is now less than 1.5% - extremely low for the industry. In Columbus, Ohio, Insight has achieved 34% digital penetration - coming from a base of zero in 1999. The customers who have Insight Digital pay an average of just under US$20 more per month, which includes interactive digital and video on demand revenues.