Cable operator Mediacom said last week it continues to be impacted by satellite TV moves in the areas it serves, especially with DBS-delivered local TV channel packages.
Said Rocco Commisso, Mediacom's chairman and CEO, "As anticipated, during the third quarter we continued to experience heightened video competition due to recent launches of local broadcast channels by satellite providers in certain markets and their aggressive promotional campaigns."
Fulcrum Global Partners analyst Richard Greenfield said that at the end of the third quarter, Mediacom was experiencing tough local-into-local competition in 43 percent of its markets. That number is expected to rise to 64 percent by year-end, the analyst said in a research note released late last week.
"Without a proven tactic to reduce Mediacom's churn to DBS, we have a difficult time believing that the satellite pressure will subside when local-into-local has reached 64 percent of Mediacom's footprint," Greenfield said.
The company increased its marketing spending by more than 45 percent in the third quarter in an effort to retain basic customers, Greenfield said. Losses to DBS continue to be primarily lower-end, basic-only customers, the analyst said.
Commisso said Mediacom has intensified its focus on every aspect of its business. "Recent enhancements to our entry-level digital video package, the continued development of exclusive local content, and ongoing investments in our customer service infrastructure are all aimed at increasing consumer satisfaction," he said.
"Moreover, we are refining our marketing message and competitive approach on a market-by-market basis. We believe these steps, in addition to others we are taking, will improve the overall customer experience," Commisso said.
