CMC bows pricing package for Hits Quantum, VOD In a Box
The Comcast Media Center is offering packaged pricing for its linear programming platform, which is called Hits Quantum, and its VOD In a Box turnkey platform.
The new pricing plan allows cable systems to offer linear programming from Hits Quantum’s high-definition, standard-definition and classic lineups while adding the CMC’s managed video-on-demand service at a reduced rate, lowering the overall expense for launching VOD.
Under the new packaged price plan, a cable system with 2,500 digital customers that uses Hits Quantum could potentially launch a complete VOD platform for as low as 31 cents per subscriber, per month, according to recent research by the CMC.
VOD In a Box, which is jointly offered with Arris, can serve up to 3,300 hours of centrally managed VOD programming per month, including HD VOD.
The CMC said the new plan served as an alternative to an already reduced flat-fee structure, permitting affiliates to pay monthly fees based on subscribers at rates that reward cable systems using a broader range of Hits services.
Hits has also introduced a marketing kit for VOD In a Box affiliates that is designed to support the launch and usage of locally branded VOD service. The kit includes cross-channel spots, a customer education video, print advertising, and point of purchase materials that affiliates can customize with their local branding and sales information.
Hits also released analysis from a case study conducted with Glasgow EPB covering the first four months following the launch of VOD In a Box in Glasgow, Ky. The Hits analysis found that VOD revenues increased 117 percent in the first four months Glasgow EPB offered the managed VOD service and currently represent nearly $3.50 in additional digital customer revenue per month.
“When we learned that VOD In a Box was a turnkey system that we could plug in and offer to our customers with limited overhead and manpower on our end, we were pretty much sold on this solution,” said Josh Francis, technical services manager at Glasgow EPB. ”In addition to offering our customers something our competitors might not have, it has been a great source of additional revenue and increased customer satisfaction.”
The VOD In a Box service, which allows cable systems to accept content from multiple sources without requiring management of the content at each headend, reduced capital expense on average by 25 percent to 50 percent, and operating expense 30 percent to 50 percent, over a typical VOD system, according to the CMC’s research.