Video Service Providers Need to Enlist Support of Building Owners of Multiple Dwelling Units to Expand Business

Frost: Because more than a third of the population of the United States lives in multiple dwelling units (MDUs), video service providers must carefully foster relationships with building owners to negotiate access agreements successfully. These talks can be risky for the provider, since they can either result in guaranteed access to a voluminous customer segment or in the loss of nearly 200 customers from a single deal, depending on the size of the MD– Europe

An operator can thrive in the MDU market if it enters a partnership with the building owner and meets customers’ expectation regarding installation, customer service, and value of offering. Once agreements are in place, providers must target the special needs of these communities through promotions as well as timely and accurate installations.

The MDU video market is becoming increasingly competitive with the entry of cable-TV, direct broadcast satellite (DBS), and major telecommunications providers.

Video service providers expect to employ ingenious marketing strategies to garner a greater share of the customer base. Moreover, MDU owners’ inclination to enhance the attractiveness of their buildings by offering video services and including their fees in the rent considerably helps service providers’ business.

While some providers offer the same service packages to MDU and single-family unit (SFU) customers, some others offer a suite of options geared to the demographics of residents. For example, in communities with a significant number of senior citizens, the multichannel video programming distributors (MVPDs) may market interactive broadband services based on telemedicine services as a must have for a better lifestyle.

Service providers may also indulge in on-site marketing events to build awareness. Sales personnel and perhaps, even technicians are present at these events to sign on customers. The MVPDs sometimes conduct door-to-door marketing to hard sell their services. They could hire residents within the building to help survey and encourage fellow tenants to sign up for the service or provide incentives to on-site leasing staff for garnering leads.

Participants in the MDU market are likely to face the same operational and customer-satisfaction issues as SFU participants. To ensure that their customers are served well, video providers should adhere to the Federal Communications Commission’s (FCC) regulations pertaining to installation intervals and customer responsiveness in call centers.

The U.S. Video Services in the Multi-Dwelling Unit Market Publ 20060718