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Cox still cozy with the bundle

Sun, 09/14/2003 - 8:00pm
Jeff Baumgartner

Cox Communications said its strategy to sell multiple services together reached another milestone, announcing it had signed up more than 2 million "bundled" customers. Cox defines a bundled customer as having two or more of the following services: video, high-speed data and telephony.

Voice services continued to pave the way for Cox's bundling strategy. In markets where the MSO offers telephony services, 40 percent of subs presently subscribe to a bundle of services, and almost 14 percent of that group takes a three-product bundle. Cox's Orange County division currently leads the way with more than 57 percent of all customers there buying a bundle of services. Omaha follows at 55 percent.

Cox has also surpassed the 3 million mark — a penetration rate of about 46 percent — for "multiple RGU (revenue generating unit)" customers, who are defined as subs who have two or more of the following services: basic cable, digital cable, HSD and phone.

Cox also reiterated that its bundling strategy has helped it stave off competition from the likes of DirecTV and EchoStar.

"Cox markets enjoy a significantly lower DBS penetration rate than the national average," said Cox President and CEO Jim Robbins. "We believe that our bundled offering and our investment in customer service are responsible for this."

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