Satellite : Promo Wars: Cablevision v. Verizon

Two weeks ago, analysts said they were surprised to see such a "cut-throat" promo coming from Cablevision for new customers in New York: $70 per month, no contract, 2-year rate lock, a free DVR and an iPod touch to sweeten the deal. The offer was called 'the most aggressive' seen to this point and an indication that Cablevision was getting serious on the pricing front.
: Fta Files - FTA-GODS.COM Satellite : Promo Wars: Cablevision v. Verizon

Now it seems Verizon has responded, and not necessarily in the way you might think. The service provider blanketed the same neighborhoods with its own deal featuring triple-play pricing of $99 per month, no contract, a multi-room DVR and price locked for 12 months. ISI Group's Vijay Jayant said the offer was a good deal but far less attractive than Verizon's previous promos and "much more benign" than CVC's. So what gives?
: Fta Files - FTA-GODS.COM Satellite : Promo Wars: Cablevision v. Verizon

As far as Cablevision is concerned, Jayant says not to read too much into the promo. "Whether (CVC) is struggling to keep sub share or just going on the offensive won't be known until they report (Q4) results," he said. "But at the very least, this can't be interpreted as a positive data-point for subscriber trends."

However, with Verizon, the analyst says not to overlook the relevance. "There's no telling how many customers (are) receiving these competing offers, (but) given Verizon's strong FiOS video results, this fresh non-aggressive promotion might serve as an indication that they are not feeling the need to compete irrationally."
: Fta Files - FTA-GODS.COM Satellite : Promo Wars: Cablevision v. Verizon

The bottom line: If you're a 'glass 1/2 full' investor, Jayant says news is good for CVC as it hasn't triggered a price war. If you're a 'glass 1/2 empty (which the analyst says is 'more likely')... Cablevision "is feeling the heat." •