& cplSiteName &

WOW Bucks Cable Trend

Alan Breznick
3/19/2014
50%
50%

Unlike most major US cable operators, WideOpenWest (WOW) ended 2013 on an upbeat note, picking up video subscribers for the second straight quarter.

WideOpenWest Holdings LLC (WOW) , a big cable overbuilder that now has more video subscribers than all but eight of the nation's traditional MSOs, reported this week that it added 3,700 basic video subscribers in the fourth quarter. While this may seem like a pretty pitiful increase for a company with nearly 700,000 video customers, it was a better performance than nearly all of the large cable operators reported for the period. Except for Comcast Corp. (Nasdaq: CMCSA, CMCSK), all of the major publicly owned MSOs reported video customer losses for the fall quarter.

The fourth-quarter increase for WOW also came on top of a larger subscriber gain in the third-quarter, a period when big MSOs like Time Warner Cable Inc. (NYSE: TWC) and Cablevision Systems Corp. (NYSE: CVC) shed subscribers in buckets. WOW, which competes against either TWC or Comcast in most of its predominantly Midwestern markets, netted 8,400 customers in the second quarter, leading to a gain of more than 12,000 customers for the second half of the year.

Despite the second-half surge, WOW still ended 2013 with fewer video subscribers than it had at the start of the year. For the year, the provider lost about 10,000 video customers, due to steeper losses over the first half of the year, pushing its total down to 694,000. (See WOW Loses Subs Across the Board.)

Like most cable operators, WOW is now enjoying greater success on the broadband side of the business and actually has more data customers than video customers. The company added 14,600 high-speed data subscribers in the fourth quarter, after gaining 16,300 customers in the third quarter. For the year, it netted 31,300 broadband subs, boosting its total to 740,000.

WOW executives credited the gains at least partly to the strides they're making in cutting customer churn rates and integrating the cable-like systems they took over from another, smaller cable overbuilder, Knology, in July 2012. Speaking on the company's quarterly earnings call with analysts Wednesday, they said they're focused on bringing the former Knology systems up to "product parity" with the legacy WOW systems.

WOW president Steven Cochran said the product parity push is leading to more HD channels and higher broadband speeds in the former Knology markets. Cochran, who will take over as company CEO when current CEO Colleen Abdoulah steps down from the post at the end of the month, said WOW is also pushing ahead with all-digital conversions in the old Knology markets, which are located mainly in midsize and smaller metro areas throughout the Southeast. "We're trying to get the acquired markets to look like our overall markets," he said. (See WOW! Names Executive Leadership.)

Besides bringing the Knology systems up to snuff and cutting churn rates, Cochran said WOW is heavily focused on beefing up its business services capabilities. With its networks in such major markets as Chicago, Detroit, Cleveland, and Columbus, he said the company spent much of 2013 building its commercial platform, staffing, and products so it could roll out business services in a big way this year.

"We invested in people and technology," he said. "We're very focused on service delivery."

With this new commercial focus, WOW has already launched Metro Ethernet and SIP trunking service so far this year. Cochran said plans also call for rolling out hosted voice service by the summer, along with some kind of "HFC product to expand our footprint" further down the road.

WOW, which generated slightly higher pro forma revenues of nearly $1.2 billion in 2013, said it expects revenue to rise 6% to 8% in 2014. It expects capital spending to rise by the same amount, due mainly to heavier spending on business services.

— Alan Breznick, Cable/Video Practice Leader, Light Reading

(5)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Phil_Britt
50%
50%
Phil_Britt,
User Rank: Light Sabre
3/20/2014 | 7:26:53 PM
Re: Pay attention to WOW
Again, WOW isn't perfect, my experience is that it's a far sight better than the cable competition. I've never looked at Dish or other satellite providers because I don't see them as viable solutions for my needs. 
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
3/20/2014 | 6:24:02 PM
Re: Pay attention to WOW

Do you think customer service is key to WOW's bucking the industry trend?

I wouldn't count these results as a victory. One quarter of tepid growth, combined with year-over-year decline, is not a great result.

Phil_Britt
50%
50%
Phil_Britt,
User Rank: Light Sabre
3/20/2014 | 3:17:26 PM
Re: Pay attention to WOW
What they are doing right is providing decent customer service. I've been a WOW customer for more than a decade. One year I switched to Comcast for a "deal," and it wasn't a week before I wished I could switch back (stuck in a one-year contract). 

Comcast ran cable where it was convenient for them and had almost non-existent customer service.

That's not to say WOW is perfect. I've had a few issues, but the company is pretty good about providing something off the bill if there's a problem. 
KBode
50%
50%
KBode,
User Rank: Light Sabre
3/20/2014 | 9:06:04 AM
Re: Pay attention to WOW
They're certainly doing something right. I seem to recall that they pretty consistently win the JD Power award for customer satisfaction in the North Central region. That's no small feat for a cable industry  that traditionally is a basement dweller in most of these surveys.

There's something to be said for remaining modestly sized and focusing on what's on your plate.
albreznick
50%
50%
albreznick,
User Rank: Blogger
3/19/2014 | 10:15:24 PM
Pay attention to WOW
WOW doesn't get much attention but it should. It's the 9th largest cable operator in the US and operates in a bunch of major markets, especially in the midwest. And it's clearly expanding both its footprint and product set. Sop I'd keep my eye on them, despite the silly acronym.   
From The Founder
The independent evaluation of Nokia's key virtual network functions (VNFs) was a defining moment for the Finnish giant.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
Between the CEOs
CEO Chat: Cisco's Yvette Kanouff

6|28|16   |     |   (0) comments


In Silicon Valley, Steve Saunders sits down with Cisco's Yvette Kanouff for an exclusive in-depth interview.
LRTV Interviews
Comcast: Prepping Next-Gen Video Services

6|28|16   |     |   (0) comments


In this LRTV interview, Comcast's Elad Nafshi outlines where MSO stands with cloud DVR, OTT video, college and gigabit services.
LRTV Custom TV
Energy 2020: Creating Unique Standards for Cable's Unique Networks

6|28|16   |   09:30   |   (0) comments


Cable's unique network requirements require a specific set of standards for operators to increase power efficiency, according to Dan Cooper, vice president of critical infrastructure for Charter Communications and chair of the SCTE/ISBE Standards Program's Energy Management Subcommittee, and Ian Oliver, managing director of the Trenchant Group and a member of the ...
LRTV Custom TV
Masergy: 'Now Is the Time for NFV'

6|28|16   |     |   (0) comments


Hear Ray Watson, VP of Global Technology at Masergy, talk about the advantages that enterprises can leverage using Network Function Virtualization (NFV), and how Masergy takes a unique approach to solving customers' problems. For more information on Masergy, please visit www.masergy.com.
LRTV Custom TV
Masergy Leads the Charge With NFV Capabilities

6|28|16   |     |   (0) comments


Hear Tim Naramore, CTO at Masergy, talk about how focusing on solving specific customer challenges, providing self-service automation tools and being laser focused on the customer experience has enabled Masergy to be a leader in the NFV space. For more information on Masergy, please visit www.masergy.com.
LRTV Custom TV
Private Company of the Year - Affirmed Networks

6|27|16   |     |   (0) comments


At BCE 2016, Steve Saunders speaks to Hassan Ahmed about Affirmed's success.
LRTV Custom TV
Energy 2020: Growing Services, Not Consumption

6|24|16   |   07:18   |   (0) comments


Management of power requirements needs to be a key consideration as cable operators deploy new services, says Dan Cooper, vice president of critical infrastructure for Charter Communications and chair of the SCTE/ISBE Standards Program's Energy Management Subcommittee. In this video, Cooper discusses the importance of cable operators and technology partners ...
LRTV Huawei Video Resource Center
Huawei & TDC First to Launch DOCSIS 3.1 Trial in Europe

6|24|16   |     |   (0) comments


To meet the rising demands for high-speed broadband and to tackle fierce competition for 1.5 million household, TDC wanted to upgrade its network to use the latest technology. Using Huawei's DOCSIS 3.1 solution, TDC is now able to offer gigabit speeds to its customers.
LRTV Documentaries
OPNFV Summit: Key Takeaways

6|22|16   |   03:28   |   (0) comments


MANO shortfalls, an increasingly bloated open source ecosystem and the cultural challenges for network operators were among the key takeaways from the OPNFV Summit in Berlin.
LRTV Huawei Video Resource Center
Bringing Ultra Broadband to the South Pacific

6|22|16   |   7:55   |   (0) comments


At Singapore's UBBS 2016 summit, Light Reading speaks to Lim Chee Siong, Huawei's CMO in the South Pacific Region.
LRTV Custom TV
Juniper's NFV Platform

6|22|16   |     |   (0) comments


A telco cloud is a key enabler for service providers to deliver virtualized services to their customers. Juniper has a differentiated approach with an open and comprehensive NFV platform to build the cloud of the future for multiple use cases.
Women in Comms Introduction Videos
Infinera: The Glass Ceiling's Been Broken

6|22|16   |   4:34   |   (0) comments


Shannon Williams, an engineer by trade and now the director of sales for Infinera's major accounts, draws confidence from being a female in a male-dominated industry and hopes other women will too as industry dynamics swing in our favor.
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 6-8, 2016,
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
A new survey conducted by Heavy Reading and TM Forum shows that CSPs around the world see the move to digital operations as a necessary part of their overall virtualization strategies.
Hot Topics
'Brexit' Vote Hits BT, Vodafone
Iain Morris, News Editor, 6/24/2016
AT&T Settles on LTE for Cellular IoT
Dan Jones, Mobile Editor, 6/22/2016
Sigfox Said to Face Customer Backlash
Iain Morris, News Editor, 6/27/2016
Qualcomm Readies Lower-Band 5G Testbed
Dan Jones, Mobile Editor, 6/27/2016
Google Fiber Buys Webpass in Wireless Play
Iain Morris, News Editor, 6/23/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
In Silicon Valley, Steve Saunders sits down with Cisco's Yvette Kanouff for an exclusive in-depth interview.
At the BCE 2016 show in Austin, ECI Telecom CEO Darryl Edwards tells Light Reading founder and CEO about the Elastic Network concept and the company's NFV and cybersecurity developments.
Animals with Phones
Live Digital Audio

Our world has evolved through innovation from the Industrial Revolution of the 1740s to the information age, and it is now entering the Fourth Industrial Revolution, driven by technology. Technology is driving a paradigm shift in the way digital solutions deliver a connected world, changing the way we live, communicate and provide solutions. It can have a powerful impact on how we tackle some of the world’s most pressing problems. In this radio show, Caroline Dowling, President of Communications Infrastructure & Enterprise Computing at Flex, will join Women in Comms Director Sarah Thomas to discuss the impact technology has on society and how it can be a game-changer across the globe; improving lives and creating a smarter world. Dowling, a Cork, Ireland, native and graduate of Harvard Business School's Advanced Management Program, will also discuss her experience managing an international team focused on innovation in an age of high-speed change.