The Real Profit Generated by TV
I’ve been asked lately about the profitability targets for Auburn Essential Services (AES) with the coming offering of TV.
Like a private company, any revenue we make profits our stakeholders. As a public entity, our stakeholders are you—the businesses and residents of Auburn. Our aim is always the same: offer the best services at the most reasonable rate. Therefore, any profit is simply reinvested in AES services – either to contain costs or provide another value-added option – so we can continue to provide quality products and superior customer service.
Additionally, in the “TV biz,” it’s an uphill battle to make a significant profit. Margins are so low because of the high fees charged by content providers. So why offer this product? Simple, customer demand. TV is part of a triple play option – Internet, phone and TV – and having all three offered through one provider is very attractive to customers, especially our residential ones.
With that understanding in mind, we’ve approached this sector just as we’ve done with Internet and phone—with prudence. Rolling out the service in a manner that doesn’t overwhelm the system or compromise our customer service. After all, our real selling point is the convenience we offer and quality service we’ve become known for in Auburn. (Our pricing will be competitive with other local providers due to the fact that fees are controlled, in large part, by national content providers—more on that in another post.)
For TV, our stakeholders may not realize a significant profit in terms of dollars and cents…but in the quality product offered by a local provider who really cares about the manner it’s delivered—at all times.