Businessmodel of Altice USA

Customer Segments

Altice USA has a segmented market business model, with customer groups that have slightly different needs. The company targets its offerings at individuals, businesses, and nonprofits.

Value Proposition

Altice USA offers two primary value propositions: accessibility and brand/status.

The company creates accessibility by providing a wide variety of options. It offers a broad range of services through the following specific brands:

• Suddenlink – Provides Suddenlink-branded digital cable television, high-speed Internet, and voice services to residential and business customers across the western, midwestern, and southern states. Additionally, for its business customers, it provides targeted online and TV advertising services.
• Optimum – Provides services in the New York tri-state area, including Optimum-branded digital cable television, high-speed Internet and voice services, and Optimum WiFi.
• Lightpath – Provides customized commercial telecommunications services and solutions for medium- and large-size businesses, including hospitals and schools in the New York tri-state area.
• CMS – Provides regional and local advertising for businesses across a wide range of platforms, including interactive channels, on-demand services, and cable television networks, powered by census-level data and data analytics solutions.
• News 12 Networks – A 24-hour local television news network with seven individual local news channels and five traffic and weather channels. It serves Long Island, New Jersey, Connecticut, Westchester, Hudson Valley, the Bronx, and Brooklyn.
• News 12 Varsity – Provides a website, mobile app, and interactive service dedicated to high school sports throughout New York, New Jersey, and Connecticut. The company has established a strong brand due to its success. It is the fourth largest cable operator in the U.S., providing residential and business services to over 4.6 million customers across 20 states. It has 18,000 employees worldwide and generated $8.93 billion in revenues in 2015. It offers 12 regional news, traffic, and weather channels and produces three print publications. Lastly, its News 12 Networks brand is the first, largest, and most watched 24-hour local television news network in the country.

Channels

Altice USA’s main channels are its brand websites and its direct sales team. The company promotes its offerings through its social media pages and advertising.

Customer Relationships

Altice USA’s customer relationship is primarily of a personal assistance nature. A service representative visits customers’ homes to install equipment and connect them to its systems. Afterwards, if there are any questions, users can contact its call centers for assistance from a live individual and schedule another visit if necessary. That said, there is also a self-service component as basic inquiries can be answered on its websites.

Key Activities

Altice USA’s business model entails designing, developing, and delivering its communications services for its customers.

Key Partners

Altice USA’s key partners are cable networks, local broadcast television stations, customer premise equipment manufacturers, communications vendors, and multichannel video providers. It signs contracts with each in order to provide its services to customers.

Key Resources

Altice USA’s main resources are its cable distribution systems, customer premise equipment, other equipment, and buildings. It also depends heavily on human resources in the form of its customer service staff and installation employees.

Cost Structure

Altice USA has a cost-driven structure, aiming to minimize expenses through significant automation. Its biggest cost driver is likely operating/technical costs, a fixed expense. Other major drivers are in the areas of sales/marketing and administration, both fixed costs.

Revenue Streams

Altice USA has three revenue streams: revenues generated from fees paid for video, data, and voice services; from fees paid for installation of equipment; and from fees paid by third parties for advertising services rendered.