When will Directcom Offer Cable TV in Eagle Mountain?
May 9, 2012 1 Comment
Cable TV is something we have looked at launching ever since 2006, when we started in Eagle Mountain. We would like to offer an IP-based, digital cable TV service over our fiber to our customers. We have explored a lot of different options over the years, and in fact are currently testing an IPTV product in our office. However, right now there just isn’t a business model to make investing in a new digital cable TV head end possible. Here are a few obstacles we have to consider:
- IPTV start-up costs are still too high.
- There aren’t enough pay TV customers in Eagle Mountain to ever recover the initial investment. (This is also the reason why we haven’t seen any other more well-known cable TV providers come into Eagle Mountain.)
- The margins on TV are too small, and are getting smaller every year as programming gets more and more expensive (even the local channels like KSL now charge a couple of dollars per sub just to rebroadcast their signal.)
- Dropping a couple of million $ into an IPTV venture while stating at 0 TV customers would be incredibly risky.
- The feedback from past surveys on how many customers in Eagle Mountain would switch to a cable TV product didn’t show a huge interest.
- TV is a very competitive industry, dominated by a few megacorporation’s that also own the content.
- Keeping up with the technology is a financial drain requiring constant upgrades.
- The majority of our customers, according to our surveys, now say they have switched exclusively to online video streaming for their viewing needs, (Netflix, Hulu etc), rather than paid satellite TV.
- We would rather spend our money on pure broadband investment, because that is the future of TV viewing.
- Our priority is to always be the best internet service provider in Eagle Mountain, and we worry that spending our time and energy on cable TV would simply be a distraction from our core business. We have enough competitors to worry about already.
With all of that said, we are not ruling out anything if we have enough customers who would be committed to a digital IPTV product, or if a path opened up for us to provide that economically. Right now it seems most people are pretty happy with the growing streaming video viewing opportunities.