Adelphia Takes On Directv
Byline: JONATHAN BLUM, KAGAN
Facing stiff competition from DirecTV in the L.A. area, Adelphia has taken marketing efforts to a different level, rolling out a new ad campaign on broadcast TV and taking a no-holds-barred attitude toward discounting. Adelphia is giving away basic digital service, several pay tiers and free installation for four months, even forgoing long-term contracts. Ignoring capital costs and operating expenses to focus on revenue, Adelphia’s payback on this deal is in some cases nearly six months long. Most MSOs keep that number closer to one or at most one and a half months. Even more remarkable, the campaign is going on during Adelphia’s Chapter 11 proceedings.
ADELPHIA’S L.A. MARKETING: RETURN ANALYSIS
DEAL TERMS: 4 MONTHS @ $33.75 INCLUDES: 3 PAYS PLUS BASIC DIGITAL
For a more complete picture of Adelphia’s finances, see “Cable TV Investor” at www.kagan.com.
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