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Cable Operators

Cablevision Rewards Subs Who Bundle

2/20/2005 7:00 PM Eastern

Offering subscribers credits of up to $25 per month on their bills, Cablevision Systems Corp. is rolling out an “Optimum Rewards” program geared at driving sales of its voice and high-speed data products to existing video customers.

Last June, Cablevision began charging new customers that subscribe to its digital-cable, cable-modem and telephone services $29.95 per month for each for one year if they took all three products, but it didn’t offer comparable discounts to existing customers.

Under the Optimum Rewards program, which Cablevision announced last week, digital- video customers that upgrade to Optimum Online and Optimum Voice will get credits of $25 per month on their bills. Customers that already subscribe to digital cable and high-speed data will receive $20 monthly credits if they add Optimum Voice.

“We believe Optimum Rewards will be a compelling incentive for existing customers to upgrade to our full bundle of Optimum services,” Cablevision executive vice president of product management and marketing Patricia Gottesman said in a statement.

Gottesman said Cablevision also expects that the Optimum Rewards program will help the company reduce subscriber churn.

Cablevision said it will begin phasing in the rewards program “on a limited basis” this month, and that the program will be offered to its entire New York metro service area by the year end.

New subscribers that take Cablevision’s triple-play offering won’t be eligible for the Optimum Rewards credits until two years after they order all three products, which will cost them $89.85 monthly for the first year.

In their second year, new customers that take all three products must pay $39.95 per month each for Optimum Online and digital cable, while the price for Optimum Voice rises to $34.95 per month.

 

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