1. Suddenlink: Then & Now
Redefining Value in an Evolving Industry

2. Executive Summary

3. AGENDA
The World Suddenlink Lives In
Research Objectives
Data, Process and Limitations
Part One: Customer Analysis and Opportunities
Part Two: Ecosystem Analysis and Opportunities
Conclusion

4. The Way Things Were
Content Producers &
Content Providers
Content
Viewers
SUDDENLINK
(Content Distributors)
Advertisers

5. The World Suddenlink
Lives In Today
Content Producers &
Content Providers
Content
Viewers
SUDDENLINK
(Content Distributors)
Advertisers

6. Redefine and Create Value
How are changes in consumer behavior affecting
their value to Suddenlink?
How can Suddenlink leverage these insights to
maximize customer value?
Shift Power Dynamics
RESEARCH
OBJECTIVES
How can Suddenlink leverage its customer-level
data to strengthen its position with content
providers at the negotiating table?

7. Data, Method &
Limitations

8. Are We Facing the
End of TV As We Know It?

10. Busting the
Cord Cutting Myth
Suddenlink: Cord Cutters Are Not an Issue
3%of Suddenlink Customers
are Cord Cutters (as of Dec 2015)
Industry Average: 1%-10%

11. Finding Long Term Opportunities
in a World of Chaos

12. Redefining Value
Household Adds → Customer Lifetime Value

13. Segments as Percentage of Customer Base

14. LTV Among All Customers:
$2,070
Segments as Percentage of Customer Base
Compared to LTV per customer

15. VIDEO
UPGRADERS

16. Video Upgraders:
Most Valuable Segment

17. Video Upgraders
have Families
▪ They are likely to be families with children
36% vs. 32%
▪ 70% of them are Triple-Players
More services = Less likely to leave
▪ Their content preferences are different
Unique Top Shows include Jessie, Mickey Mouse Club, and Chopped

18. Increase LTV by:
Maintaining and Expanding
▪ Appreciate your MVPs:
Flag them as MVP as soon as they upgrade
Offer Home Security (65% are home-owners)
Impact: increase LTV by $45 - $90 per customer
▪ Expand this segment:
By identifying and acquiring Lookalikes
Impact: increase segment LTV by $58K - $116K

19. Opportunity:
Video Upgraders
Increasing Total LTV by
$1.2 M - $2.4 M
for all Video Upgraders
Increasing LTV by
$45-$90
per Video Upgrader

20. CORD
SHAVERS

21. Cord Shaving is
on the Rise
WHY SHAVE THE CORD?
▪ Belief: “Skinny Bundles” can save money
▪ Stream some content via OTT service
▪ Keep TV to watch Talk shows, News and Live Sports

22. Cord Shavers:
Profitable and Sticky

23. Increase LTV by:
Upselling HSD
Why:
How:
1. Add HSD
Impact: increase LTV by $8 - $17 per customer
2. Upgrade HSD
Impact: increase LTV by $69 - $138 per customer
More data than average
110GB per month
(vs. 106GB per month)
More data after shaving
119GB per month
(vs. 102GB per month)

24. Opportunity:
Cord Shavers
Increasing Total LTV by
$2.1 M - $4.2 M
for all Cord Shavers
Increasing LTV by
$77-$154
per Cord Shaver

25. CORD
NEVERS

26. Cord Nevers Represent
the Future
Customers who have never subscribed
to Pay TV but have Data
▪ Most likely to be millennials (Under 32)
▪ Happy with OTT service
▪ Satisfied with broadcast TV
▪ No Cable = Save Money
▪ Low interest in watching live TV

27. Cord Nevers are
Increasing
Potential Cord Nevers:
50% of SL’s New Customers!
Who are they: customers who joined in
2015 with a starting bundle of Data only
or Data and Phone
They are different from SL’s
customer base demographically

28. Cord Nevers:
Growing Opportunity

29. Increase LTV by:
Upgrading HSD
Encourage Cord Nevers to
Upgrade their HSD Plans
Impact: Incremental LTV of
$98 - $169 per customer
Data usage: increase 37% in 2015

30. Increase LTV by:
Retaining
Offering Flexible Plans: Improve Retention Rate
E.g. Moving Plan or College Student Plan
Impact: Incremental LTV of $292 per customer

31. Increase Future LTV by:
Understanding and Adapting
Long-Term Study:
Cord Nevers may upgrade when they reach Full Nest life stage.
Study the relationship between life stage and video consumption.
Create consumer migration plan across their lifetime.

32. Opportunity:
Cord Nevers
Increasing Total LTV by
$163.6 M - $197.0 M
for all Cord Nevers
Increasing LTV by
$408-$491
per Cord Never

33. Combined Impact
on Total LTV

34. Total Impact: Increase of $167 - $204 Million
LTV Among All Customers:
$2,070

35. Recommendation
Timeline
Short Term
1. UPSELL:
Convince Cord Shavers and Cord Nevers to Upgrade their
current HSD packages
2. CROSS SELL:
Cross Sell HSD to Cord Shavers without Data
Cross Sell Home Security to Video Upgraders to further
increase their stickiness
3. TEST AND LEARN:
Conduct market test to optimize additional service offerings
Long Term
1. FOCUS ON RETENTION:
Increase retention rate of Cord Nevers by 0.5%
2. FURTHER STUDY:
Relationship between life stage and video consumption
to understand service migration in the long run.

36. Ecosystem Opportunities
How Suddenlink Can Expand Its Role

37. The Bigger Picture
Content Producers &
Content Providers
Content
Viewers
SUDDENLINK
(Content Distributors)
Advertisers

38. Suddenlink’s New Roles
Matchmaker Tailor Fortune
Teller

39. Suddenlink as
Matchmaker
What shows are watched together?
▪ Optimized advertising opportunities
▪ Content & Commercials

40. Recommendations
▪ Characters cross-over
▪ Advertise shows during other shows
▪ Air new episodes back-to-back
Viewers who watch Austin & Ally are 3.5x more likely than
other viewers to watch Dog With a Blog and 3.4x more likely
to watch Girl Meets World.

41. Recommendations
▪ College Football themed
episode
▪ Advertise CBS-aired
football games during 2
Broke Girls episodes
(and vice versa)
▪ Football-themed
advertisements during 2
Broke Girls episodes
Viewers who watch 2 Broke Girls are
1.3x more likely than other viewers to
watch College Football.

42. Strong loyalty to network channels for news & talk
▪ Focus advertising spend on leading show
Viewers who watch Late Night with Seth Meyers are
4x more likely than other viewers to watch Last Call
with Carson Daly.

43. Suddenlink as Matchmaker
▪ Targeted advertising is coming to television
▪ Match advertising to content
Content Producers &
Content Providers
Content
Distributors
Advertisers

44. Suddenlink
as Tailor
Consumers demand customization
Suddenlink can identify optimal channel
bundles

45. Suddenlink as Tailor
Suddenlink Skinny Sports Bundle
Network Channels + Sports
23 of Most Popular Shows 5 of Most Popular Shows

46. Suddenlink as Tailor
▪ Cable and OTT bundling
▪ All-OTT bundling opportunities
26% of viewing occasions were
watching recorded shows

47. Suddenlink as
Fortune Teller
Predicting a show’s success
Identifying a niche audience

48. Suddenlink as
Fortune Teller
Episode One
▪ Customer viewing
behavior
▪ Number of viewers
▪ Nielsen rating
▪ Social media
Episode Two
▪ Viewer return rate
▪ Change in number
of viewers
▪ Nielsen rating
▪ Social media
Episode Thirteen
▪ Viewer return rate
▪ Change in number
of viewers
▪ Nielsen rating
▪ Social media

49. Suddenlink as
Fortune Teller
Viewership
Episode Count
Renewed Shows
Canceled Shows

50. “The numbers just didn’t sustain the cost of the show,
quite frankly. It’s all math at the end of the day. We
couldn’t establish that core audience that allows you
to figure out your advertising paradigm and whether or
not the show is affordable.”
Series creator and showrunner Kurt Sutter, The Bastard Executioner

51. Conclusion
The data you have is important.
▪ Redefine value metrics and focus on
customer lifetime value
▪ Leverage consumer behavior to
explore untapped opportunities
▪ Assume new roles as matchmaker,
tailor and fortune teller
▪ Earn greater leverage and negotiating
strength

52. APPENDIX

53. CORD CUTTERS: Customers who stopped having “VIDEO” at some point
CORD SHAVERS: Customers who either downgraded from Expanded Basic to
Basic or from Premium to Expanded Basic
CORD NEVERS: Customers who never had “VIDEO” and started with “DATA” only
or “DATA+PHONE” bundles
VIDEO UPGRADERS: Customers who either upgraded from Basic to Expanded
Basic or from Expanded Basic to Premium
Definition of Each Segment

54. Suddenlink Customer Base Snapshot (Dec’15)Suddenlink Customer Base Snapshot (Dec’15)

55. Suddenlink Customer Base Snapshot (Dec’15)Summary Table of Segment Statistics

56. SL gained new customers at about the same rate it lost them
(Net down for year)

57. Potential Cord Nevers Joining Each Month

58. Cord Cutter Statistics

59. ● 98% at least have a Basic plan (vs 61% all)
● 99.75% have HSD vs 80% all
● 51% DO NOT have DVR (vs 25% all)
● 86% have HDTV (vs 47% all)
● 87% had Video on Demand-enabled (vs 50% all)
● 89% had the Expanded Basic plan (vs 56% all)
Some Characteristics of SL’s Cord Cutters

62. Households with OTT Subscriptions -> More Likely to Cut

63. Financials:
Video Upgraders -
Home Security
VIDEO
UPGRADERS 25739
Without investment Pessimistic Optimistic Percentages
Home security $10,295.60 $25,739.00 $51,478.00 2.00% 5.00% 10.00%
SUM $10,295.60 $25,739.00 $51,478.00
$0.40 $1.00 $2.00
$0.32 $0.80 $1.60
NLTV $44.95 $89.89
$1,156,968.05 $2,313,678.71

64. Financials:
Video Upgraders
Home Security and Expand
VIDEO
UPGRADERS 27025
Without
investment Pessimistic Optimistic Percentages
Home security $10,810.00 $27,025.00 $54,050.00 2.00% 5.00% 10.00%
SUM $10,810.00 $27,025.00 $54,050.00
$0.40 $1.00 $2.00
$0.32 $0.80 $1.60
NLTV $44.95 $89.89
$1,214,773.75 $2,429,277.25
1156968.05 2313678
$57,805.70 $115,599.25

65. Financials:
Cord Shavers
CORD
SHAVERS 26924
Without investment Pessimistic Optimistic Percentages
Add HSD $2,028.60 $5,071.50 $10,143.00 2.00% 5.00% 10.00%
Upgrade HSD $16,314.54 $40,786.35 $81,572.70 2.00% 5.00% 10.00%
Home security $10,769.60 $26,924.00 $53,848.00 2.00% 5.00% 10.00%
SUM $29,112.74 $72,781.85 $145,563.70
$1.08 $2.70 $5.41
$1.05 $2.62 $5.24
NLTV $122.90 $245.80
$3,308,959.60 $6,617,919.20

66. Financials:
Cord Nevers
CORD NEVERS 401255
Without investment Pessimistic Optimistic Percentages
Upgrade HSD $754,359.40 $1,320,128.95 $2,263,078.20 4.00% 7.00% 12.00%
$1.88 $3.29 $5.64
$1.82 $3.19 $5.47
NLTV $98.50 $169.00 $39,523,617.50 $67,812,095.00
.5% INCREASE
IN RETENTION
RATE% $407.84 $490.98 $853.40 $954.90
$39,523,617.50 $67,812,095.00
$163,647,839.20 $197,008,179.90

67. Predictor Channel Genre Result Channel_Result Genre_Result Support Confidence Lift
CBS Overnight News CBS News CBS Morning News CBS News 0.1009487 0.8773784 4.2939318
Last Call With Carson Daly NBC Talk Late Night With Seth Meyers NBC Talk 0.1369496 0.7701778 3.9429652
Late Night With Seth Meyers NBC Talk Last Call With Carson Daly NBC Talk 0.1369496 0.7011208 3.9429652
CBS Morning News CBS News CBS This Morning CBS Talk 0.1009487 0.8201581 3.5754719
Austin & Ally Disney Children Dog With a Blog Disney Children 0.1143274 0.5860349 3.4966466
Dog With a Blog Disney Children Austin & Ally Disney Children 0.1143274 0.682148 3.4966466
Austin & Ally Disney Children Girl Meets World Disney Sitcom 0.1084894 0.5561097 3.4224058
Girl Meets World Disney Sitcom Austin & Ally Disney Children 0.1084894 0.6676647 3.4224058
CBS Morning News CBS News CBS Overnight News CBS News 0.1009487 0.6525157 3.348929
CBS Morning News CBS News CBS This Morning CBS Talk 0.1547069 0.7571429 3.3007575
CBS This Morning CBS Talk CBS Morning News CBS News 0.1547069 0.6744433 3.3007575
CBS Morning News CBS News CBS Overnight News CBS News 0.1230844 0.602381 3.0916206
CBS Overnight News CBS News CBS Morning News CBS News 0.1230844 0.6317104 3.0916206
ABC World News Now ABC News America This Morning ABC News 0.1656531 0.574199 2.8101572
America This Morning ABC News ABC World News Now ABC News 0.1656531 0.8107143 2.8101572
College Football Sports event CBS Morning News CBS News 0.1053272 0.2738773 1.3403685
ABC World News Now ABC News Dateline NBC NBC
News-
magazine
0.1087327 0.3768971 1.3380174
Dateline NBC NBC
News-
magazine
ABC World News Now ABC News 0.1087327 0.3860104 1.3380174
2 Broke Girls CBS Sitcom College Football Sports event 0.1080029 0.5127021 1.3331551
College Football Sports event 2 Broke Girls CBS Sitcom 0.1080029 0.2808349 1.3331551
Anger Management Fox Comedy College Football Sports event 0.1045974 0.510083 1.3263449
College Football ESPN Sports event Anger Management Fox Comedy 0.1045974 0.2719798 1.3263449
Market Basket Analysis: Show Pairings

68. Most Popular Shows
Rank Show Title
Hours
Watched
Channel
1 SportsCenter 33,617 ESPN
2 Paid Programming 29,657
3 Today 23,011 NBC
4 College Football 19,516 Varies
5 NFL Football 15,738 Varies
6 Law & Order: Special Victims Unit 11,079 NBC
7 Dr. Phil 10,882 CBS
8 Late Night With Seth Meyers 9,759 NBC
9 The Late Late Show With James Corden 9,268 CBS
10 NCIS 9,217 CBS
11 The O'Reilly Factor 8,833 FOX
12 The Voice 8,324 NBC
13 Good Morning America 8,130 ABC
14 The Tonight Show Starring Jimmy Fallon 8,130 NBC
15 The Young and the Restless 7,831 CBS
Rank Show Title
Hours
Watched
Channel
16 ABC World News Now 7,728 ABC
17 The Kelly File 7,345 FOX
18 The Big Bang Theory 7,302 CBS
19 General Hospital 7,156 ABC
20 MLB Baseball 7,117 Varies
21 Days of our Lives 7,053 NBC
22 Jimmy Kimmel Live 6,838 ABC
23 Law & Order 6,617 NBC
24 Teen Titans Go! 6,607
Cartoon
Network
25 FOX and Friends 6,492 FOX
26 Hannity 6,346 FOX
27 Judge Judy 5,954 CBS
28 The Ellen DeGeneres Show 5,836 NBC
29 Criminal Minds 5,832 CBS
30 NBA Basketball 5,763 Varies

69. Variables for new show success prediction
Fraction of return: The number of viewers who watched the last episode and also watched the
current episode
Change in viewers: The difference between the amount of viewers for the last episode and the
amount of viewers for the current episode
Average completion: The percent of the episode a viewer watched, averaged across all viewers
Playback_difference: The difference between the date a viewer watches the show and the date the
show is on air
Fraction of population: The percent of all viewers who watch the episode
Cancel_flag: If the show has been canceled, value it as 1. Otherwise, value it as 0.