New behaviors brought on by COVD-19 have boosted Cox Communications Inc.'s broadband and video businesses with U.S. Hispanics, according to company executives.
Speaking at Hispanic Television Summit, Luis Caballero, Cox's executive director of integrated marketing and segmentation, said one thing made clear during COVID-19 was that with more people working and learning at home, greater bandwidth is needed. Whereas usage previously peaked on weekends, the peak now extends to every day of the week.
Caballero added that with the need for better connectivity and higher speeds, Cox's broadband business was strong through the second quarter, with continued growth. He said during COVID-19, broadband gains were equal to that of the two prior years.
As a privately owned company, Cox Communications does not release detailed financial information. Kagan, a media research group within S&P Global Market Intelligence, estimates that as of the June quarter, Cox counted more than 3 million video subscribers and nearly 6 million broadband customers.
While U.S. Hispanic users historically relied more on mobile devices to access the internet, Caballero said given the heightened need for connectivity and sustained speed amid pandemic constraints, that solution was insufficient and Cox has increased its broadband sign-up rate with the group.
Cox has also engaged in a number of efforts to keep consumers connected during these uncertain economic times, engaging as many of its peers did in the U.S. Federal Communications Commission's Keep America Connected pledge. Under the program announced in March, providers agreed not to terminate service to any residential or small-business customers because of their inability to pay their bills due to disruptions caused by the coronavirus and to waive fees incurred by those customers because of economic circumstances stemming from the outbreak.
Cox has also lowered pricing for its entry-level broadband tiers and worked directly with schools to bolster uptake via Connect2Compete, a program providing free broadband access for 60 days to lower-income families with K-12 students.
Moreover, given the financial situations confronting many, Caballero said Cox paused collection efforts and nonpayment disconnection activities for broadband and phone service customers during the second quarter. It also opened up thousands of Wi-Fi spots, including in residential areas, to provide assistance for those working from home, but who do not have broadband.
He noted that all of Cox’s mitigation efforts have coalesced to keep churn very low, but acknowledged that the pandemic's dynamics — mandating continued connectivity for more households — likely bolstered customer retention.
Nonetheless, Caballero is interested to see how the heightened numbers net out against a period down the road after a true dissipation of the pandemic, when performance can be more accurately assessed against the spikes engendered by the virus in April and May.
On the video side, Caballero said Cox has seen gains with its Contour streaming product. The internet-connected platform allows subscribers to tap video apps, connect to services such as Netflix Inc., YouTube and Hulu LLC, as well as access music and thousands of hours of movies and shows.
The product appeals to streaming proponents, value seekers and cord cutters, he said, exposing Cox to a new set of potential customers.
He said Cox has also registered gains with its Latino Pak, and he believes other distributors have also registered advances with such tiers during the pandemic, addressing some of the content needs of multigenerational U.S. Hispanic households.
Another development in play: the continued absence of theatricals amid the pandemic. Caballero is curious to see if film families, who had been spending $100 per month on two trips to movie theaters, are going to reinvest some of that money into traditional cable or streaming products.