April 24, 2013

Broadband Cable Association of PA

Natalie Kurchak, Atlantic Broadband

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The “approach” to marketing had to change

PA region service areas are low-growth populations, we can’t count on new customers moving in to the region

We were spending way too much time and energy chasing the chronic non pay customer

Marketing in Today’s Competitive Environment

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CHANGE – we had to change the way we thought about potential customers

We want the “best” customers – those that will pay their bill and not churn

Marketing in Today’s Competitive Environment

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Qualifying the customer Leave the less desirable customers to the competition Supports good marketing practices and encourages retention The onus is on the customer to remain connected Strict soft and hard disconnect procedures

We aren’t joking!

We base installation fees and deposits based on their credit score

You weed out the least desirable customer You control the amount of services subscribed to keep the

monthly bill reasonable by requiring a credit card on file for all digital equipment

Marketing in Today’s Competitive Environment

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So now that we limited ourselves to only taking the best customers, we had to grow our revenue “per sub”

How? By introducing new and better products to make customers want to “stick” with us

Marketing in Today’s Competitive Environment

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Upgrades to High-Speed Internet Service D3 High Speed Internet – up to 40MBPS residential Home Networking Service to ensure multiple screen

enjoyment of High Speed Internet serviceSticky Services

HBO Go, MLB.tv, TNT March Madness app. network On-Demand programming Include router with Home Networking service

Created Get It All Bundles For new and current customers Beef up bundles with the services customers REALLY want

Include Starz!, Encore, Showtime, HD Channels and DVR Service for maximum service experience

Marketing in Today’s Competitive Environment

Get it All BundlesGet it All Bundles

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Fully Loaded Bundles!

Double Play and Triple Play bundles that give customers all the bells and whistles!

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2012 High Level Results Summary

The proof is in the results:

Consistent YOY service revenue growth of 4.0%

Commercial services revenue growth of over 30%

Service Revenue Growth Trend

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Year-Over Year Recurring Service Revenue Growth

2013 Major Initiatives

Improve our DVR Service Advanced DVR / Gateway (TiVo)

Change our brand to convey our new message Rebranding/rewrap of fleet

Improve our HD Channel Selection Add up to 80 HD Channels in our major markets by

year end Switched digital and/or digital simulcast to free up

bandwidth

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Questions?