One of the most challenging things we do at WOW! is to decide what channels to offer customers. Often we receive requests to add certain channels and questions as to why others aren’t available or have been dropped or put into a different package. There are a number of factors we take into consideration – what physical capacity is available; which channels have the greatest overall customer demand; how much the programmer or network is demanding in license fees. We know our choices won’t always be popular. But we hope you understand that we strive to make decisions that we truly believe are responsive to the programming and pricing needs and desires of all our customers.
In order to air the television channels you enjoy, we have to have the necessary physical capacity – or bandwidth – to distribute them. Much like any retail store, we have a finite amount of shelf space available. Most of it is already occupied by the current channel line-up. And so there is a limited amount of bandwidth available at any given time. We continually look for ways to remove channels with low performance or at least move them to a more appropriate package so that we can free up capacity to add the programming that customers actually want.
So when we have available bandwidth, how do we decide which networks to consider? First we take a look at customer feedback. We have a channel request form on our website from which we track and monitor what our customers are asking for. We also look at the Nielsen ratings to understand viewership of the various channels in each of our markets. Feedback from our Regional GMs, our technicians and customer care representatives who speak with customers every day is also taken into consideration. Our goal is to satisfy as many customers as we possibly can with our programming decisions. So armed with that information, we prioritize which networks we think would best meet the needs of our broad and diverse customer base.
Finally, we engage in programming negotiations with the network to try and reach business terms that make sense for our customers and our company. We negotiate to renew carriage of existing channels as well as launching new ones. Sometimes a reasonable outcome is reached. But more often than not these days, negotiations seem to become more and more contentious. The larger media companies are demanding significant increases and threatening to pull their signals unless operators like WOW! succumb. Or they require carriage of channels with little customer demand in exchange for the right to continue distributing their higher rated channels. And as for HD, there’s an alarming trend towards “launch one, launch many” where programmers will allow operators to carry the HD feed of a highly desirable channel –but only if we agree to carry the HD feeds of many of their less desirable channels as well.
What does all of this mean? Here’s the bottom line. We accept that programming expenses increase every year. We don’t like it, but we get that everyone has a business to run – as do we. So as channel changes are evaluated, we’ll continue to fight hard for business terms that are fair and reasonable. There are many worthy channels we carry or would like to carry, but they’re not worth carrying at any price.




