Video Rate Increase Leads to a Path of Profitability

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Foothills Communications, a large rural video operator in northeast Kentucky, and MG-TV video customer, had not raised their video prices since 2019, and as a consequence found themselves not keeping up with rising content costs.

Jarrod Hardin, Director of Customer Relations at Foothills said that video is an important service for the company with over 7,000 customers subscribing to it. From a service perspective, video at Foothills has a 40% take rate. The challenge was how to make it more profitable without creating a major backlash from their customers.

Customer Reaction to the Increase

Hardin said they were expecting to lose 30% of their video customers given the size of the rate increase, but just two months into the new pricing it looks like they will lose only about 2%. Hardin said the whole experience has been a win for Foothills by making their video profitable again.

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