| Year after year for the last several decades we | | | | television industry knows they have a problem. |
| have complained about cable television service. | | | | They are advertising their new responsiveness to |
| When we called them for service we were told | | | | the customer. They say they will be there quicker |
| they would be there next week somewhere | | | | when you need them, and give you a few hour |
| between 8 am and 7pm. That meant we'd have | | | | window, in advance. That is a complete |
| to take the day off of work to sit in the house | | | | turnaround for the cable television industry. |
| and wait for the cable guy to come because if | | | | The reason is competition. If you can leave and |
| we were not there when they arrived we'd have | | | | go to the competitor if you are unhappy, |
| to reschedule and wait another week. That's if | | | | suddenly the company takes very good care of |
| they showed up at all. Cable was King. Cable | | | | you. AT&T, Verizon, Qwest, DirecTV and Dish |
| television companies felt no need to worry. | | | | Network are the competitors who are changing |
| Customers had no choice. Until now. | | | | the industry and forcing the cable television |
| Suddenly the local telephone company is selling a | | | | companies to improve. |
| competitive service. It is called IPTV. AT&T sells | | | | In the 1990's the TV show Seinfeld, Kramer tried |
| Uverse and Verizon sells FiOS. These services are | | | | to get back at the cable company by telling them |
| such good quality and offer so much more in | | | | he'd be there between 9am and 1pm then he |
| features that they are now winning customers | | | | didn't show. |
| away from the cable television industry. | | | | The same thing happened with local phone |
| Reportedly 5 million households have cancelled | | | | companies back in the 1970's. Remember Lily |
| their cable television service and given their | | | | Tomlin from the TV show Laugh In? One ringy |
| business to the phone company or satellite | | | | dingy, two ringy dingies, oh goodness gracious this |
| television. Cable television customers dropped to | | | | is Ernestine the operator from the local phone |
| around 63 million from 68 million, between 2006 | | | | company, to whom am I speaking... honk, honk. |
| and 2009. That is a turn of events that has the | | | | These were some of the funniest skits on |
| cable television companies scrambling for a fix. | | | | television because we could all relate to the lousy |
| The last several years we have watched the | | | | service we got from the phone company. |
| telecommunications industry completely remake | | | | Well today the phone companies give excellent |
| itself. We used to do business with both | | | | service. Why? Competition. They started |
| companies, because we had no choice. However | | | | competing with the long distance giants in the |
| an increasing number of customers are getting a | | | | 90's, and they eventually won. SBC and Verizon |
| choice. | | | | acquired the long distance giants AT&T and MCI |
| First the cable television companies started | | | | in the early 2000's. Now they are larger, more |
| offering phone service over the Internet and they | | | | successful and competing with a new threat, the |
| were winning customers from the phone | | | | cable TV companies. |
| companies. Now the reverse is happening as local | | | | At the same time cable television customer |
| phone companies are winning business from the | | | | satisfaction ratings have been among the lowest |
| cable television companies. | | | | of any industry followed. The American Customer |
| Isn't competition a beautiful thing? | | | | Satisfaction Index said the four largest cable TV |
| Competition is good for everyone, customers and | | | | operators averaged only 59 (from 1 to 100) since |
| companies. It improves the quality. It lowers the | | | | 2004. That is worse than other industries that we |
| price. It increases innovation. Customers start to | | | | also complain about. |
| love what the company does instead of complain | | | | So this is nothing new. We have learned |
| about it. Investors love this in the marketplace. It | | | | competition is a beautiful thing. Suddenly the |
| is healthy. | | | | marketplace has changed. Suddenly the customer |
| We have seen the cable television companies win | | | | is first, not the company like it has always been. |
| customers from phone companies a few years | | | | The cable television companies like Comcast, Time |
| ago. Now we are seeing the local phone | | | | Warner, Cox, Charter Communications, |
| companies winning customers of their own from | | | | Cablevision and others are learning the painful |
| the cable TV companies. | | | | lessons the phone companies learned 20 years |
| This was expected. I have been saying for the | | | | ago. Isn't it great to finally get a caring voice on |
| last several years that 10 to 20 % of the | | | | the other end when you call your cable television |
| customers on each end will quickly give their | | | | company for service? |
| business to one side or the other. The battle | | | | This is only the beginning. The cable television |
| comes when the vast middle is fought over. | | | | industry has a lot to learn. They have to retrain |
| So winning customers is a very interesting | | | | their workers. They have to re-write their mission |
| situation, but it was expected. Over the next | | | | statements. They have to recreate themselves. |
| year I think we will start to see advertising and | | | | It will take some time, but at least they are now |
| marketing change. This is a very good thing for | | | | headed in the right direction for customer, |
| customers. | | | | investors and workers. |
| Just look at what we are seeing so far. The cable | | | | Isn't competition a beautiful thing? |