The Cable Industries Video Mojo

There has been quite a bit of discussion lately about Cable losing it's Video Mojo. I would like to forward a concept that has considerable potential to reverse the share loss trends along with significant cash flow increases:

Here is the premise: all major market cable operators have less than 50% utilization of their network ports delivering video. To say it another way, more than 50% of the homes that are being passed by cable do not purchase any form of video from a cable operator.

This can be rationalized away until the cows come home, however the underlying implications are very serious. For example, Advertising Revenues, Video On Demand, Interactive Television and delivery of internal branding, upgrade, retention and general marketing communications are all lost with each home that does not receive a video service from a cable operator along with incremental subscriptions of broadband. Simply put, the nature of the customer relationship and level of engagement is quite different for broadband vs video.

Here is the idea, instead of retiring old cable boxes give them away for free and provide the necessary level of video service to pass regulatory muster. Make video on demand available without a monthly cost to the consumer (or make it minimal like Netflix), additionally create an IP based offering to test and price accordingly (give the box away or sell it for a minimal one-time fee). The scenarios are endless for innovation and consumer testing.

The current situation if very similar to building a store in a small town and then not putting any products on the shelves since cable networks operate at full capacity, powering etc, regardless of whether or not the ports are connected and generating revenue. Ongoing cost of maintaining a cable drop is minimal and in-home service could be billed by the hour or trip.

After 30 years watching in-home subscription products and opportunities come and go, I wonder why Cable has lost its Video Mojo.