Flow to chop cable offerings
On December 5, 2021, Communications company Cable and Wireless Jamaica Limited (Flow) indicated its plan to start cutting more cable channel offerings effective December 31, 2021, and that it has rebranded or repackaged two others, notifying clients that repackaging changes will take effect during the month which ends the year.
Cable & Wireless which trades as Flow is the top provider of cable TV services in the island. The company has been doing well, revenue-wise, and appears set to do even better by cutting costs. The telecoms provider earned US$100.6 million in revenue over three months ending September, outperforming its pre-pandemic levels. Turnover climbed seven per cent relative to the July-September 2020 quarter and five per cent over 2019 pre-pandemic levels.
Over nine months, from January to September, Flow Jamaica’s revenue totalled US$297.3 million. This compared to US$277.5 million in the comparative 2020 period.
In a notice issued to customers on December 5, the company indicated that nine channels will be removed on the last day of the year, while another 10 will be removed by January 31, 2022. In all, Flow subscribers will see content reduced by 19 channels. It also appears to be cutting another two, indicating that the Travel Channel will be repackaged in the “TV Watch All/Do It All” package; while Boomerang will be rebranded Cartoonito.
Effective December 31, the service will no longer offer NBC Sports Network, One Caribbean TV, CCTV 9, Fox Soccer Plus, Fox Sports 2, SET Asia HD, Sab TV HD, Pal TV and Set Max HD.
Those slated for removal in January are Star Action (East), Star Action (West), Star Classics, Star Series (East), Star Fun (East), Star Fun (West), Star Hits, Star Cinema, Star Series (West) and Star Comedy.
Some subscribers shared the view with the Business Observer that Flow should reduce monthly charges for every channel removed.
The Business Observer reached out to Flow to find out if subscriber rates would be reduced for the smaller package now being provided. The Consumer Affairs Commission was also contacted for its perspective on how charges might be adjusted, given the reduction in services.
The Fair Trading Commission (FTC) noted that in the past, when there were changes to cable TV packages due to copyright infringements and channels previously enjoyed by consumers were shown without the correct authorisation being granted by the content owners, subscription pricing was adjusted.
The FTC says on its website, “This development has caused providers to reshuffle their offerings and invariably consumers lost some channels and also had changes to the price they paid for existing packages.”
In its response Flow through Kayon Mitchell, Director, Communications & Stakeholder Engagement said: “Flow is committed to delivering the best content, at competitive rates, to our customers.
”The recently communicated adjustments are part of the ongoing transformation of our entertainment product as we continue to review our channel line-up in order to provide the best value to our customers.
“Content such as the Star Premium Suite and NBC Sports Network is being removed because it will no longer be offered in the region. Customers may still enjoy premium movies on HBO Max and alternative content for NBC Sports may be found on Flow Sports and ESPN.
”Content in our Sony Asia package as well as CGTN, Fox Soccer Plus, Fox Sports 2, Fox Deportes is being removed as we continue to optimize the line-up while maintaining value to our customers.
“Some alternative channels for the South Asian programming include Zee TV, Zee Cinema, Star Gold, Star India Plus, B4U Movies and B4 Music channels.
”With regard to the Sports Channels, some content which is shown delayed on Fox Soccer Plus and Fox Sports 2 can be seen LIVE on Flow Sports or other sports channels including ESPN and ESPN2. Additionally, some of the more popular programming can be found on Flow Sports. This includes Scotiabank Concacaf Champions League, Scotiabank Concacaf League, Concacaf Gold Cup, Premiership Rugby, World Surfing League and College Football. MLS and College Football may also be viewed on ESPN.
“It is important to note that cable charges are not calculated on a per channel basis, but rather with due consideration for the programming costs. As such, we continue to respond to the changes in the global industry space and navigate our negotiations with the content providers. We are reviewing our current rate structure for all our packages and any changes will be communicated with our customers accordingly.
”We strongly value our relationship with our customers and as we have done above, we will continue to identify other similar content and negotiate (with the various content providers) to provide same at the best cost to our customers. We also ensure that they are advised, in a timely manner, of the pending adjustments.
“We have had a longstanding history of excellence in Jamaica, investing in our people, our network, and our consumers to enable change, growth, and transformation. We remain committed to this mission.”
Flow Jamaica started operating in Jamaica in April 2006, using fibre-optic cables. Digicel entered the market through its acquisition of Telstar Cable Company in 2014. Currently, there are 29 entities licensed by the Broadcasting Commission of Jamaica (BCJ) to provide cable TV services in Jamaica. Flow and Digicel have the widest reach.