►
Description
San Bruno City Council Meeting April 26, 2011
10c. Cable Direct Sales Campaign
A
B
Honorable
mayor
members,
city
council,
good
evening,
Tenzin
galcen,
cable
television,
director,
our
item
before
you
this
evening-
is
to
seek
City
Council
approval
to
expand
the
promotional
incentives
for
cables
direct
sales
campaign
to
generate
new
customers.
As
you're
aware,
the
cable
industry
has
seen
a
slow
but
steady
decline
in
basic
cable
customers
over
the
last
10
years,
due
to
the
state
of
the
economy
and
the
increasing
level
of
competition.
Seminole
cable
has
been
similarly
impacted
over
the
last
10
years.
Basic
cable
subscribers
have
declined
by
4,600
units.
B
However,
during
the
same
10-year
period,
seminole
cable
has
added
15
thousand
new
units
in
other
core
services,
such
as
internet,
digital,
cable,
phone
HD
service
and
DVR.
Rentals.
Also,
we
have
been
transformed
a
business
from
being
just
a
cable
TV
company
into
a
telecommunications
company
serving
both
residential
and
business
community
up
until
two
thousand
nine,
except
for
competition
from
satellite
service
providers.
Seminole
cable
did
not
have
a
true
locally
present
competition,
no
competitor.
B
The
introduction
of
new
competition
has
resulted
in
a
higher
level
of
subscriber
churn
through
march,
while
we
added
approximately
1100
basic
cable
subscribers.
1,800
cable
subscribers
disconnected
resulted
resulting
in
a
net
loss
of
approximately
700
subscribers
basic
cable.
Subscribers
are
a
co
component
or
a
core
component
of
our
revenue
strategy
and
vital
to
the
city's
general
fund
so
growing
and
maintaining
basic
cable
subscribers
is
essential
to
ensuring
the
vitality
viability
of
the
cable
enterprise.
B
Norberto
sales
is
a
tactic
used
by
all
cable
companies
and
even
our
competitors.
The
success
of
any
campaign
is
dependent
upon
the
promotional
offer.
We
try
to
evaluate
the
market
and
develop
an
offer
that
sometimes
is
out
competed
by
editor's.
When
that
happens,
we
just
need
to
improve
our
offer
and
remarket
it.
So
staff
is
recommending
that
we
continue
to
invest
in
these
type
of
marketing
initiatives
to
stabilize
the
basic
subscriber
losses
and
regain
market
share.
B
C
Evening,
mayor
and
council
members,
the
2010
door-to-door
sales
campaign
yielded
1970
new
service
units,
but
it
did
not
generate
any
significant
number
of
new
basic
cable
subscribers.
As
shown
in
table
1
of
your
report
that
campaign,
as
you
can
see,
generated
103
new
basic
cable
subscribers.
The
sales
team
was
not
able
to
effectively
sell
that
offer
of
a
free
first
month,
free
installation
and
free
activation
against
competing
offers,
that
included
longer
free
periods,
greater
discounted
rates
and
cash
incentives
such
as
one
hundred
dollar
gift
cards.
C
From
our
discussion
with
the
sales
crew
and
their
management,
we
have
learned
that
prospective
customers
are
looking
for
a
low
entry
price,
no
long-term
contracts
and
some
guarantee
that
prices
will
not
steeply
rise
over
the
short
term.
The
proposed
promotion
consists
of
fixing
the
service
rate
for
three
years,
as
shown
in
table
3
of
your
report
for
the
core
services,
which
are
digital,
cable,
internet
and
phone,
and
the
triple
play
bundle
packages.
C
Even
though
the
prices
have
been
discounted,
the
campaign
prices
sufficiently
covered
the
direct
cost
to
providing
those
services
by
setting
the
offer
of
the
low
entry
price
and
fixing
the
rates
for
the
next
three
years
without
requiring
a
contract.
We
feel
that
our
expanded
offer
will
draw
customers
who
left
for
competitors
teaser
or
introductory
rates
back
to
San,
bernal
cable,
additionally
to
match
the
offers
being
presented
by
our
competitors.
C
Staff
proposes
that
the
revitalized
offer
include
other
incentives,
such
as
HD
service
and
all
triple
pay
packages,
a
premium
service
or
foreign
language
service
free
for
three
months
and
the
continuation
of
the
free,
install
and
free
activation.
It's
also
proposed
at
a
100
credit,
be
offered
to
incentivize
a
switch
from
our
competitors.
The
promotional
period
will
be
for
two
months,
beginning
May,
first
and
ending
june
thirtieth
2011
prospective
customers
must
sign
up
for
service
within
this
window
to
receive
the
offer.
C
The
offer
will
be
honored
only
for
those
households
who
have
not
been
a
Cable
customer
for
at
least
three
months.
Existing
customers
may
also
take
advantage
of
the
promotional
offer
by
way
of
a
service
upgrade.
For
example,
a
cable
TV
only
customer
may
add
internet
to
their
service
and
get
the
promotional
rate
this,
not
only
in
cents
an
existing
customer
to
take
more
services
from
san
fran,
ok,
but
it
also
increases
revenue
and
customer
retention.
C
Given
the
short
time
frame
between
now
and
the
end
of
the
fiscal
year,
it
is
not
practical
to
deploy
the
door
to
door
sales
crew.
So,
as
per
the
advice
of
the
cable
subcommittee
mayor
lane
and
councilmember
O'connell,
it
is
proposed
that
this
campaign
be
conducted
through
direct
mail
to
all
non
cable
and
internet.
Only
subscribers
at
this
time
conducting
the
campaign
through
direct
mail
is
not
only
cost
efficient,
but
it
also
enables
us
to
gauge
the
attractiveness
of
this
offer
to
ending
on
the
success
of
the
direct
mail
campaign.
C
City
council
may
direct
staff
to
continue
the
promotion
through
the
door
to
door
sales
campaign
during
during
the
next
fiscal
year.
The
direct
mail
campaign
will
consist
of
four
postcard
mailers
during
the
two-month
period,
the
four
mailers,
where
postage
are
expected
to
cost
approximately
45
thousand
dollars.
The
community
promotions
account
in
the
cable
operating
budget
has
a
balance
of
163
thousand
dollars
which
is
available
for
funding
this
proposed
campaign.
C
D
Here
we
go
expensive,
too
expensive
to
do
door-to-door
staff
reports
at
61
thousand
dollars
in
commissions
and
during
the
door
to
door
and
I
experienced
one
of
the
daughter
or
salesman,
and
he
didn't
impress
me
at
all
now
you're
talking
about
a
mailing
campaign.
Why
don't
we
just
go
toe
to
toe
with
AT&T,
and
with
these
other
companies
we've
seen
what
we
can
do
on
cable?
You
know
as
far
as
PSAs,
why
don't
we
do
it
on
cable?
Why
don't
we
just
do
it
so
that
people
see
that
we
are.
D
You
know
comparing
our
our
offers,
and
you
know
our
incentives
with
what
is
being
offered
that
other
people
are
seeing.
That's
why
they're
leaving
right
I
haven't
seen
anyone
from
the
other
competitors
come
door
to
door,
I'm,
getting
kind
of
tired
and
seeing
them,
and
you
know
on
the
commercials
all
the
time
right.
C
I
think
councilman
they
do
a
national,
their
national
advertisers,
so
they
can
use
that
television
to
reach
subscribers.
We
we
don't
reach
or
we
don't
need
to
reach
because
they're
out
of
our
area
as
far
as
doing
a
campaign
for
video
in
our
system
again
but
you're
right.
That
would
target
our
customer
existing
customers,
which
would
hopefully
keep
them
with
us.
So
I
see
a
value
to
that,
but
we
would
not
be
reaching
customers
that
don't
have
our
service
and
that's
why
the
door-to-door
campaign
was
was
was
done.
C
The
ATT
folks
are
out
there
they're
doing
the
door
to
door.
They
were
out
there
when
we
were
doing
ours
and
they're
out
there
now
and
they
have
a
new
campaign
coming.
That's
very
aggressive
as
well,
so
just
to
address
that
yeah
I
agree.
We
could
do
something
along
those
lines
with
with
existing
customers
to
do
that.
Comparison,
okay,.
B
D
C
D
D
My
next
scent
is
more
of
a
grassroots
thing,
because
I
remember
and
Steve
you've
been
involved
in.
We
need
to
be
out
there
in
the
community
more
at
the
community
events.
You
know,
we've
got
a
farmers
market
starting
up,
you
know
on
sunday
I
think
cable
needs
to
be
out.
There
show
your
equipment,
let
people
stand
around,
maybe
there's
a
ball
game
on
or
something
and
they
can
stop
and
say,
and
then
that
time
you
can
tell
them
about
our
new
services.
You
know
our
new
incentives,
those.
B
C
We
were
at
the
farmers
market
twice
last
year
did
not
result
in
many
sales,
but
it
did
result
in
the
good
customer
contact
that
you're
talking
about
answering
questions.
We
do
propose
to
do
that
again.
This
year
we
did
the
tanforan
event
before
did
not
result
in
very
many
local
people
even
coming
to
our
table
because
they're
just
either
they
had
our
service
or
they
were
from
another
city,
but
yeah.
We
do
plan
on
doing
that.
Point
well
taken.
Ok,.
E
Couple
of
things,
interestingly
enough,
I
went
and
spoke
to
a
family
who
had
switched
from
San
bernal
cable
to
directv
seven
months
about
seven
months
ago
and
oddly
as
I'm
having
the
conversation
found
out
that
they
switch
from
our
internet
to
18
teaser
an
internet
about
a
week
ago.
I
found
that
as
a
good
reference
point
in
which
to
try
to
find
out
what
was
driving
them
to
switch
so
I
have
some
information.
Probably
one
corner
doll
is
about
their
promos
and
I.
E
Guess
we
don't
want
to
give
them
any
airtime,
but
but
it
was
interesting
that
in
reading
the
flyer
here
opposed
to
why
they
switched
several
months
ago
and
what
was
offered
there
are
some
things
that
are
more
enticing.
Shall
we
say
back
then
for
them
to
make
the
switch
and
I
think
one
of
the
things
that
you're
dressing
is
the
three
years.
So
it
gives
you
some
sense
of
what
will
you
be
paying
because
that's
always
the
fear?
E
How
much
will
go
up
and
how
fast
will
it
will
I
be
able
to
write,
react
to
it
or
change
out
of
it
and
get
out
of
the
contract?
I
think
people
look
for
immediate
savings,
even
if
it's
a
year,
they're
willing
to
switch
from
year
to
year
because
in
this
economy,
if
you
can
save
me
a
couple
hundred
dollars
this
year
and
I
switch
back
next
year,
I'll
do
that
and
I
think
they're
willing
to
do
that
and
obviously
they
have
on
your
flyer.
E
There
was
just
one
thing:
I
noticed,
and
it's
just
it
says
in
bold
in
the
center
TV
and
internet
package
is
now
available.
That's
on
the
bottom
portion
of
the
flyer
and
on
the
top
portion
and
I
didn't
catch
us.
They
did
it's
blank,
there's
nothing
there,
I,
don't
know
if
it
should
say
you
know
the
same
type
of
thing
that
to
have
consistency.
I
don't
know
if
that
was
left
out
intentionally,
that's
something
again.
They
caught.
I
didn't,
but
it
is
just
a
concern.
E
I
think
council
member,
I
bear
I've
echoed
this
before
and
I'll
say
it
again.
Is
that
I
think
our
engagement
in
the
community
to
show
our
local
what
we?
What
we
can
do,
what
we
have
done
and
we
should
be
engaged
in
the
various
aspects
of
the
community,
because
in
essence,
back
then
and
I'm
going
to
go
back
to
the
old
days
is
you
knew
that
the
cable
department
was
engaged
in
the
community
gave
back
to
the
community?
E
So
your
subscription
and
participation
in
that
help
the
community
help
the
youth
programs
helped
all
those
activities
in
the
sponsorships
that
they've
had
another
thing.
Things
have
changed
and
there's
different
processes,
or
you
know,
promotions
that
were
going
differently
but
I.
Think
again.
In
these
hard
times
back
to
basics
is
not
a
bad
thing,
so
I
would
encourage.
You
know,
I'm
also
going
to
say:
I
had
some
calls
on
the
door
to
door
which
were
folks
that
came
there
and
it
was
there
were
not
complimentary
whatsoever
and
not
by
one
or
two.
E
D
C
E
Talking
about
calls
from
residents
who
experience
them
and
honestly
one
called
I'm,
understand
the
department
because
they
were
saying
this
person
can't
be
working
for
the
department.
They
were
very
taken
back
and
concerned
about
who
was
at
the
door
and
the
way
they
represented
themselves
and
their
image,
and
the
image
represents
us.
So
if
we're
going
to
have
somebody
going
door
to
door,
let's
make
sure
they
have
the
standards
and
the
X.
E
B
Part
of
the
reason
we
were
not
as
successful
in
the
last
campaigners
because
of
the
offer
itself,
the
offer
stuff
was
not
very
attractive
compared
to
what
was
out
in
the
market.
So
we
looked
at
that
seriously
and
said:
what
is
it
that
customers
really
looking
for?
I
mean
like,
like
Steve,
said
in
his
report?
Looking
for
low
entry
price
point
guarantee
that
the
price
is
not
going
to
go
up
steeply
over
the
long
term,
so
look
at
all
those
different
factors
and
then
developed
a
new
campaign
based
on
that.
B
So
we
think
that
would
with
the
change
in
the
offer.
You
think
when
you
see
some
success
and
by
doing
a
direct
mail
piece,
we
wanted
to
make
sure
test
the
mark
and
see
how
that
off
the
offer
is
going
to
be
accepted
by
customers
and
then,
if
the
customers
are
ready
to
switch,
we
can
get
that
customer
at
a
low
price
point
versus
paying
for
doorbell
campaign.
B
So
once
you've
done
the
initial
pass
through
and
gotten
as
many
customers
we
can
through
the
direct
mail
piece,
then
we
can
go
back
and
actually
do
it
door-to-door
and
try
to
get
the
remaining
customers.
So
in
this
first
phase
we're
going
to
hit
all
the
non
customers-
customers
that
are
non
currently
non:
cable
customers
that
only
have
internet
service
etc
to
get
get
that
base
up
first.
So
that's
sort
of
the
strategy
we're
pursuing
this
time
around
and
just
to
address
some
of
the
concerns
about
cables
presence
in
the
community.
B
We
tried
to
actively
participate
in
the
operation,
clean
sweep
and
other
events
as
well.
We
continuously
continue
to
sponsor
sporting
teams
and
local
charities
as
much
as
we
can
given
our
policy.
So
we
continue
to
do
those
type
of
efforts
and
will
continue
to
continue
that
into
the
future
as
well.
I.
D
Got
one
thing:
that's
land,
I'm,
no
marketing,
guru
or
anything,
but
when
I
look
at
these
flyers
and
every
time
that
I've
seen
how
we're
marketing
san
bruno,
cable,
there's
so
much
information,
it's
like
you're
trying
to
put
so
much
on
these
flyers
and
it
just
ends
up
being
a
bunch
of
numbers.
I
mean
go
for
the
throat
go,
say
80
you're,
paying
this
much
for
80.
We're
offering
you
this!
This
is
how
much
you're
paying
for
this.
This
is
what
will
get
them.
D
B
Customer
Ibara,
because
that's
exactly
what
I'm
looking
for
in
terms
of
direction
when
how
we
conduct
our
campaigns
and
till
up
until
now
and
to
recently
a
lot
of
our
campaigns
have
been
very
passive,
so
to
speak,
and
we
talk
about
promoting
what
we
have,
which
is,
you
know,
competing
against
the
competitor
depa
thing.
We
have
not
really
not
taken
a
position,
but
with
your
direction,
you
know
we
can
expect
expand
the
way
to
promote
our
services,
because.
D
The
commercials,
the
commercials,
don't
tell
you
anything,
they're,
just
really,
but
not
less
and
everything,
but
they
get
that
one
price
that
one
thing
that
they're
offering
and
they
keep
throwing
that
at
you
and
that's
what
grabs
to
people
that
at
least
you
know
inquire
or
make
the
call
I
think
that's
we
got
to
do.
Is
it
just
me
appreciate.
A
F
We
talked
long
and
hard
about
the
issues
that
you
brought
up
and
I
know
the
fire
that
you
have
in
front
of.
You
is
not
the
final
flyer.
Some
of
information
is
not
even
correct
of
what
we
just
heard.
So
maybe
you
could,
when
you
get
down
to
when
you're
choosing
the
final
thing,
she
just
saw
a
copy
and
we
can
all
not
that
you
have
to
listen,
but
we
can
put
our
two
cents
worth
in
because
sometimes
it's
always
it's
always
better
to
have
another
I,
sometimes
to
actually
see
what's
going
on.
Try.
F
It's
a
difficult
game
that
the
companies
out
there
are.
They
have
huge
customer
base.
We
have
a
very
limited
one.
They
have
a
huge
budget
for
advertising
for
marketing
for
all
those
things
and
if
one
thing
doesn't
work,
they
immediately
switch
to
something
else.
So
we're
trying
to
keep
this
in-house
we're
trying
to
do
the
best.
We
can
we're
trying
to
we're
trying
things
and
if
it
doesn't
work,
we
switch
and
try
something
so
I
think
we're
responding
and
all
the
input
we
give
and
all
the
input
you're
giving
makes
a
better
product.
So
Michael.
A
We
sit
in
these
cable
meetings
long
and
hard
and
try
to
figure
all
of
this
out.
You
know
we're
not
a
national
firm.
We
can
do
loss
leaders
and
throw
people
into
the
fold
and
just
tease
them
in
the
beginning,
with
some
cheap
rates
and
then
find
out
that
they're
in
a
contract
and
get
burned
later,
so
we're
trying
in
a
very
nice
way
to
to
sell
our
own
product,
which
in
fact
is
you
know
putting
money's
in
the
city
city
coffers
by
the
way,
and
so
it's
a
it's
quickly.
A
That's
compared
to
where
we
were
a
number
of
years
ago,
at
cable,
TV
and
then
cable
can
be
expanded.
We
have
high-definition
TV,
we
have
VoIP,
have
internet
access,
you
know
it's
a
great
system
and
the
fact
that
you
can
pick
up
the
phone
and
have
a
technician.
They're
free
of
charge
is
huge.
So
all
of
these
things
are
difficult
to
explain
in
a
flyer.
A
lot
of
them
are
difficult
to
explain
with
an
outside
source,
knocking
on
your
door,
but
I
think
you
have
some
direction
tonight
as
to
how
you
can
fine
tune.