Video strategies vary among independent cable operators

Small and midsized cable operators agree that broadband is as important as ever, but the way they are implementing their video strategies is still a mixed bag. While some operators are upgrading to new IP- and app-based services and platforms, others are also partnering with third-party streaming services or, in some extreme cases, exiting the video business altogether. 

• Cable One has largely been focused on broadband and commercial services and, for years, has been indifferent about pay-TV losses, which have driven video penetration at the operator to less than 10%. Meanwhile, Cable One has focused on converting remaining video subscribers to IP-based video platforms in partnership with TiVo largely to help the operator reclaim valuable capacity that's been used to deliver video service. The "primary driver" there is to apply that reclaimed capacity for high-speed Internet services and to help push out physical plant upgrades, said Ken Johnson, the operator's chief digital and technology officer. Cable One expects to initiate DOCSIS 4.0 network upgrades in 2024. 
• Bluepeak—an operator that serves portions of North Dakota, Montana, Wyoming and Oklahoma—is also eager to transition from legacy systems to IP video and reclaim capacity. That reclaimed capacity can then be applied to broadband, the primary conduit for streaming. "Video consumption is at an all-time high, just not provided by us," Bluepeak CTO Cash Hagen said. Internet-delivered streaming "uses a big part of our network that we spend lots and lots of capital on," he added. "There's no going back." Hagen agreed that video remains important as a driver of broadband penetration as well as overall average revenue per user (ARPU). Pay-TV is no longer in the "number one slot," but providing local TV service still resonates in rural areas, he added.