A Design-focused Business Model Forestalling TV Cord-Cutting Trends

It is a great news to hear the story of Comcast that invests in digital service design through set-top box and guide as well as customer service to stem the tide of TV cord cutting. As on February 3, 2016, Comcast added 89,000 video customers in the last quarter of 2015. 

Comcast was able to, at least for now, defy the industry logic that cord-cutters are increasingly abandoning pay TV. It has been investing in customer service and in its set-top box and guide, which it says encourages customers to watch more TV and makes them less likely to cancel service.

In an interview, Comcast Chief Executive Brian Roberts said: "There was a time others had high-definition TV and we didn’t, and there was no interactivity and no video-on-demand. Fortunately, we made investments and we bet right."

Pay-TV providers are fighting for customers as people “cut the cord” and opt for cheaper, skinnier packages. Comcast has been investing in video over the past several years. Since 2010, Comcast has hired more than 650 software engineers to create a transformed video experience, and those efforts led to the X1 Internet- connected set-top box and guide, a sleeker alternative to the clunky cable guides of the past that allows for fast, Web-like updates and an easy way to watch TV on-demand.

Mr. Roberts also credited Comcast’s recent investments in customer service for helping to retain customers. The company last year budgeted $300 million to turning around its customer operations, including building an Uber-like app to allow customers to track and rate their technicians.

The details of the story can be found in "Comcast Staves Off Cord-Cutting" Wall Street Journal February 4, 2016


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