Cable TV Network Business Plan [Sample Template]

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A Cable TV Network business is a company that provides television programming to subscribers through the use of coaxial or fiber-optic cables.

The business operates by delivering a variety of TV channels, both local and international, to customers who pay a monthly subscription fee for access to these channels. It is important to note that the Cable TV Network industry has been evolving due to advancements in technology and consumer preferences.

With the rise of internet streaming services (e.g., Netflix, Hulu, Amazon Prime Video), traditional Cable TV Networks face competition and are adapting by offering their streaming platforms or partnering with online streaming services.

This shift has led to the concept of “cord-cutting,” where viewers cancel their cable subscriptions in favor of internet-based streaming services. As a result, Cable TV Network businesses are continuously adapting to stay relevant in the changing media landscape.

Steps on How to Write a Cable TV Network Business Plan

Executive Summary

Galaxy® Cable TV Network, Inc. is a leading provider of high-quality cable television services in Baton Rouge, Louisiana. With a proven track record of delivering diverse and engaging content to subscribers, Galaxy® Cable has become a household name, offering unparalleled entertainment experiences to its customers.

Galaxy® Cable TV Network, Inc. was founded in 2015 and has since grown to become one of the most trusted and reliable cable TV providers in the Baton Rouge metropolitan area. Our company is committed to delivering exceptional television programming through state-of-the-art technology and a robust infrastructure of coaxial and fiber-optic cables.

Company Profile

a. Our Products and Services

At Galaxy® Cable, we take pride in our extensive range of subscription packages designed to cater to diverse viewer preferences. Our offerings include:

Comprehensive Channel Lineup: We provide an extensive selection of local, regional, national, and international channels, featuring news, sports, entertainment, lifestyle, and more.

High-Definition (HD) Programming: Galaxy® Cable ensures that subscribers enjoy a superior viewing experience with an extensive array of high-definition channels.

On-Demand Library: Our on-demand service allows customers to access their favorite shows and movies at their convenience, enhancing flexibility and convenience.

Premium Content: We offer premium channels, such as HBO, Showtime, and Starz, to provide exclusive and blockbuster entertainment options.

Local Programming: Galaxy® Cable TV Network, Inc. actively supports the Baton Rouge community by featuring locally produced content, events coverage, and community-based shows.

b. Nature of the Business

Our cable TV network service company will operate the subscription business model.

c. The Industry

Galaxy® Cable TV Network, Inc. will operate in the Media and Entertainment industry, specifically within the “Television Broadcasting” sector.

d. Mission Statement

At Galaxy® Cable TV Network, Inc., our mission is to provide our valued subscribers in Baton Rouge, Louisiana, with an unparalleled entertainment experience. We are committed to delivering diverse, high-quality television programming that captivates and engages our audience.

Through cutting-edge technology, exceptional customer service, and a commitment to the community, we aim to be the foremost choice for cable television services, enriching the lives of our customers with top-tier content and enhancing their entertainment journey.

e. Vision Statement

Vision Statement of Galaxy® Cable TV Network, Inc.: “Our vision at Galaxy® Cable TV Network, Inc. is to become a leading innovator in the Media and Entertainment industry, setting new standards for cable television services. We aspire to continuously evolve our offerings to stay at the forefront of emerging technologies and viewing trends.

f. Our Tagline (Slogan)

Galaxy® Cable TV Network, Inc. – “ Elevating Entertainment to New Horizons”

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

Galaxy® Cable TV Network, Inc. will be formed as a Limited Liability Company (LLC).

h. Our Organizational Structure

Chief Executive Officer (President)
Network Manager
Sales and Marketing Officer
Accountant
Cable TV Network Technicians
Customer Service Executives

i. Ownership/Shareholder Structure and Board Members

Orlando Julius (Owner and Chairman/Chief Executive Officer) 56 Percent Shares
Pacqueece Martins (Board Member) 14 Percent Shares
Jack Chan (Board Member) 10 Percent Shares
David Benjamin (Board Member) 10 Percent Shares
Cynthia Thomas (Board Member and Secretary) 10 Percent Shares.

SWOT Analysis

a. Strength

Galaxy® Cable offers a comprehensive selection of local, national, and international channels, catering to diverse viewer preferences and interests.
The company’s robust infrastructure and advanced technology ensure uninterrupted and crystal-clear television signals, providing subscribers with a superior viewing experience.
Galaxy® Cable has established strategic relationships with leading content providers, securing access to premium and exclusive programming.
The company’s focus on locally produced content and community engagement fosters a sense of belonging among viewers and strengthens its connection with the Baton Rouge community.
Galaxy® Cable has built a trusted and reliable brand image over the years, earning the loyalty of its customer base.
The company’s customer-centric approach and excellent customer service contribute to high levels of customer satisfaction.

b. Weakness

The rise of internet streaming services and cord-cutting may lead to a decline in traditional cable subscribers.
Galaxy® Cable’s reliance on content partnerships leaves the company vulnerable to changes in licensing agreements and content availability.
The company’s on-demand offerings may be less extensive compared to some internet-based streaming platforms.

c. Opportunities

Galaxy® Cable can explore offering hybrid cable and internet-based services to cater to changing consumer preferences and compete with streaming platforms.
Investing in original and exclusive content production can attract and retain subscribers, providing a competitive edge.
Offering bundled packages with internet and telephone services can attract new customers and increase overall revenue.
Collaborating with popular streaming services or other media companies can expand content offerings and reach new audiences.

i. How Big is the Industry?

The cable TV network industry is big, and it is global in dimension.

ii. Is the Industry Growing or Declining?

As of 2021, the cable TV network industry’s size was still significant, but its growth rate had slowed down compared to previous years. This is due to the increasing popularity of internet-based streaming services and “cord-cutting” trends.

iii. What are the Future Trends in the Industry?

The cable TV network industry is subject to various trends and advancements that shape its future. The trend of “cord-cutting,” where viewers cancel their traditional cable subscriptions in favor of internet-based streaming services, was expected to continue.

Additionally, “cord-trimming,” where subscribers reduce their cable package to a more basic level, was becoming more common as viewers sought cost-effective alternatives.

Internet-based streaming platforms, such as Netflix, Amazon Prime Video, Hulu, and Disney+, were gaining popularity. These platforms offered on-demand content, original programming, and flexible viewing options, providing strong competition to traditional cable TV networks.

Cable TV providers were exploring hybrid services, combining traditional cable TV offerings with internet-based streaming options. Some companies are developing their streaming platforms or partnering with existing streaming services to retain subscribers and adapt to changing viewer habits.

The rollout of 5G technology had the potential to impact the industry significantly. Faster and more reliable connectivity could facilitate new services and improve content delivery to customers.

iv. Are There Existing Niches in the Industry?

No, there are no existing niche ideas when it comes to the cable TV network services business. This is so because the cable TV network services line of business is a niche idea in the television broadcasting industry.

v. Can You Sell a Franchise of Your Business in the Future?

Galaxy® Cable TV Network, Inc. has no plans to sell franchises shortly.

d. Threats

The Media and Entertainment industry is highly competitive, with cable providers facing competition from streaming services, satellite providers, and other alternatives.
Changes in regulations or policies related to the cable industry may impact operations and costs.
Rapid advancements in technology may require significant investments to keep up with changing viewer habits and preferences.
During economic downturns, consumers may reduce discretionary spending, impacting cable subscription rates.

i. Who are the Major Competitors?

Comcast Xfinity
Charter Spectrum
Cox Communications
Altice USA (Optimum and Suddenlink)
AT&T TV
Verizon Fios
Dish Network
DirecTV
Mediacom
RCN
WOW! Internet, Cable, and Phone
Cable ONE (Sparklight)
Atlantic Broadband
Buckeye Broadband
Midco
Frontier Communications
Armstrong
Shentel
MetroNet
Blue Ridge Communications.

ii. Is There a Franchise for Cable TV Network Service Business?

No, there are no franchise opportunities for cable TV network service businesses.

iii. Are There Policies, Regulations, or Zoning Laws Affecting Cable TV Network Business?

Yes, there are several policies, regulations, and zoning laws affecting the Cable TV Network business in the United States of America. These regulations are primarily aimed at ensuring fair competition, protecting consumer rights, promoting access to diverse programming, and managing the use of public rights-of-way for cable infrastructure.

Cable TV providers are required to enter into franchise agreements with local municipalities to operate in specific areas.

These agreements outline the terms and conditions under which the cable company can offer services in the community, including the level of service, fees, customer service standards, and public access provisions. Cable TV providers are often required to provide channels for public, educational, and government programming.

These channels are intended to give community members a platform to air local content and government proceedings. Cable TV providers need access to public rights-of-way, such as streets and utility poles, to lay and maintain their cable infrastructure.

Local zoning and right-of-way regulations govern how cable companies can use these public spaces. Cable TV companies are subject to privacy laws that protect the personal information of their subscribers, including the collection, use, and sharing of customer data.

Marketing Plan

a. Who is your Target Audience?

i. Age Range

The target audience for a cable TV network usually spans a wide range of age groups. This may include children, teenagers, young adults, middle-aged individuals, and seniors. Different channels and programs may cater to specific age groups and interests.

ii. Level of Education

Cable TV networks may target individuals with varying levels of education, as content can range from educational programs to entertainment-focused content.

iii. Income Level

The target audience’s income level can vary based on the subscription packages offered by the cable TV network. They may have options for basic, standard, or premium packages to cater to different income brackets.

iv. Ethnicity

Our target audience will be diverse, reflecting the multicultural population of the United States. Cable TV networks often offer channels and programming that cater to different ethnic and cultural groups.

v. Language

While English is the predominant language, our cable TV network will also offer channels with content in other languages, targeting specific language-speaking communities.

vi. Geographical Location

Our geographical target will be specific to the areas where our cable TV network operates and it will be primarily focused on the Baton Rouge, Louisiana region.

vii. Lifestyle

Cable TV networks may tailor programming to different lifestyles, interests, and hobbies. This could include content for sports enthusiasts, movie lovers, news junkies, fashion enthusiasts, etc.

b. Advertising and Promotion Strategies

Host Themed Events That Catch Attention.
Tap Into Text Marketing.
Make Use of Bill Boards.
Share Your Events in Local Groups and Pages.
Turn Your Social Media Channels into a Resource
Develop Your Business Directory Profiles
Build Relationships with players across different industries with an emphasis on the media and entertainment industry.

i. Traditional Marketing Strategies

Marketing through Direct Mail.
Print Media Marketing – Newspapers & Magazines.
Broadcast Marketing -Television & Radio Channels.
OOH Marketing – Public Transit like Buses and Trains, Billboards, Street shows, and Cabs.
Leverage on direct sales, direct mail (postcards, brochures, letters, fliers), tradeshows, print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.

ii. Digital Marketing Strategies

Social Media Marketing Platforms.
Influencer Marketing.
Email Marketing.
Content Marketing.
Search Engine Optimization (SEO) Marketing.
Affiliate Marketing
Mobile Marketing.

iii. Social Media Marketing Plan

Start using chatbots.
Create a personalized experience for our customers.
Create an efficient content marketing strategy.
Create a community for our target market and potential target market.
Gear up our profiles with a diverse content strategy.
Use brand advocates.
Create profiles on relevant social media channels.
Run cross-channel campaigns.

c. Pricing Strategy

When working out our pricing strategy, Galaxy® Cable TV Network, Inc. will make sure it covers profits, insurance, premium, license, and economy or value and full package for each cable TV network service carried out, In all our pricing strategy will reflect;

Penetration Pricing
Cost-Based Pricing
Value-Based Pricing
Competition-Based Pricing.

Sales and Distribution Plan

a. Sales Channels

Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, strategic alliances in the media and entertainment industry, branding and advertising industry, and freelancers to help refer clients to us.

b. Inventory Strategy

Galaxy® Cable TV Network, Inc. will develop strong relationships with reliable suppliers and manufacturers of cable TV network materials is essential. This includes evaluating suppliers based on factors like product quality, pricing, lead times, and customer service.

Maintaining open lines of communication with suppliers can help ensure the timely delivery and availability of inventory items.

We will implement a Just-in-Time (JIT) inventory strategy which will help minimize storage costs and reduce the risk of obsolete inventory. This involves maintaining inventory levels that are closely aligned with current project needs and replenishing supplies as required, rather than stockpiling excessive inventory.

c. Payment Options for Customers

Bank Transfers
Cash
Credit or Debit Card
Checks
Electronic Payment Systems such as PayPal or Venmo.

d. Return Policy, Incentives, and Guarantees

Return Policy:

Satisfaction Guarantee: Galaxy® Cable TV Network, Inc. will offer a satisfaction guarantee for new subscribers, allowing them to cancel their subscription within a specified period (e.g., 30 days) if they are not satisfied with the service. In such cases, a refund or account credit may be provided.

Incentives:

Introductory Offers: Galaxy® Cable will offer special introductory pricing or discounted packages to attract new customers. These promotions could include reduced rates for the first few months of subscription.
Bundled Services: The company might offer incentives for customers to bundle their cable TV subscription with internet and phone services, providing cost savings and convenience.
Premium Channel Trials: Offering free trials of premium channels (e.g., HBO, Showtime) for a limited period could entice subscribers to explore additional content.

Guarantees:

Reliable Service Guarantee: Galaxy® Cable TV Network, Inc. will provide a guarantee of reliable service, assuring subscribers of minimal downtime and technical issues with their cable TV signal.
24/7 Customer Support: The company might guarantee round-the-clock customer support to address any issues or concerns promptly.

e. Customer Support Strategy

Galaxy® Cable TV Network, Inc. will implement a customer relationship management (CRM) system to track customer interactions, manage inquiries, and facilitate effective communication. We will provide excellent customer service by addressing customer inquiries, resolving issues promptly, and maintaining positive relationships with clients.

Operational Plan

Our operational plan involves developing detailed technology and infrastructure required to deliver cable television services, including the cable network’s coverage area, signal distribution centers, and transmission equipment. Define the different subscription packages offered to customers, including various tiers of channels (basic, premium, sports, movies, etc.), pricing, and benefits.

Implementing an effective operational plan ensures that Galaxy® Cable TV Network, Inc. operates efficiently, delivers high-quality services, and maintains strong customer relationships. Regular monitoring, evaluation, and adaptation are essential for success and long-term growth.

a. What Happens During a Typical Day at a Cable TV Network Business?

A typical day at a Cable TV Network business involves a blend of technical operations, content management, customer service, marketing efforts, and business management to ensure the delivery of engaging television programming to subscribers.

b. Production Process

The production process for a Cable TV Network business involves a combination of content acquisition, creation, scheduling, broadcasting, customer service, marketing efforts, and business management to deliver engaging and diverse television programming to subscribers.

c. Service Procedure

The service procedure for a Cable TV Network business involves a combination of subscription onboarding, signal distribution, channel lineup and programming, customer service, marketing efforts, financial management, and technical maintenance to deliver cable television services and ensure a positive viewer experience for subscribers.

Subscription and Onboarding:

Prospective customers inquire about cable TV services and subscription packages.
Sales representatives provide information about available packages, pricing, and promotions.
Customers select a subscription package and complete the onboarding process, which may include account setup and equipment installation.

Signal Distribution and Broadcasting:

The cable TV network transmits television programming through a network of signal distribution centers.
The programming is delivered via coaxial or fiber-optic cables to reach subscribers’ homes.

d. The Supply Chain

The supply chain for Galaxy® Cable TV Network, Inc. encompasses multiple interconnected processes and functions aimed at delivering cable television services efficiently to subscribers and ensuring a positive viewer experience.

e. Sources of Income

A cable TV network business generates income from various sources, contributing to its overall revenue. Here are the primary sources of income for a cable TV network business:

Subscription Fees
Advertising Revenue
Pay-Per-View and Video-on-Demand
Premium Channel Subscriptions
Bundled Services
Licensing and Syndication
Affiliate Fees
On-Screen Graphics and Promotions
Equipment Rentals and Sales
Events and Sponsorships.

Financial Plan

a. Amount Needed to Start Your Cable TV Network Service Company?

Galaxy® Cable TV Network, Inc. would need an estimate of $2.5 million to successfully set up our cable TV network service company in the United States of America. Please note that this amount includes the salaries of all our staff for the first month of operation.

b. What are the Costs Involved?

Business Registration Fees – $750.
Legal expenses for obtaining licenses and permits – $7,300.
Marketing, Branding, and Promotions – $5,000.
Business Consultant Fee – $2,500.
Insurance – $5,400.
Rent/Lease – $45,000.
Operational Cost (salaries of employees, payments of bills et al) – $800,000
Equipment and Machines – $1.5 million
Website: $3,000
Opening party: $5,000
Miscellaneous: $25,000

c. Do You Need to Build a Facility? If YES, How Much will it cost?

Galaxy® Cable TV Network, Inc. will not build a new facility for our cable TV network service company; we intend to start with a long-term lease and after 10 years, we will start the process of acquiring our facility.

d. What are the Ongoing Expenses for Running a Cable TV Network Company?

Content Acquisition and Licensing
Signal Distribution and Broadcasting
Employee Salaries and Benefits
Technical Maintenance and Upgrades
Marketing and Promotions
Content Development and Original Programming
Billing and Financial Management
Regulatory and Compliance Costs
Software and Technology
Licensing and Royalties (content licensing, licensing fees, and royalties for music or other intellectual property used in programming or advertisements).
Events and Sponsorships.

e. What is the Average Salary of your Staff?

Chief Executive Officer – $65,000 Per Year
Network Manager – $48,000 Per Year
Business Developer / Sales and Marketing – $40,000 Per Year
Accountant – $40,000 Per Year
Cable TV Technicians – $45,500 Per Year
Customer Service Executive / Front Desk Officer – $32,000 Per Year

f. How Do You Get Funding to Start a Cable TV Network Company?

Raising money from personal savings and sale of personal stocks and properties
Raising money from investors and business partners
Sell shares to interested investors
Applying for a loan from your bank/banks
Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
Source for soft loans from your family members and friends.

Financial Projection

a. How Much Should You Charge for Your Product/Service?

Generally, the monthly subscription fees for basic cable TV packages in the U.S. range from around $20 to $70 per month. However, it is important to note that these prices can change over time and may vary significantly based on the factors mentioned above.

Premium channels or add-ons to basic packages, such as sports packages or movie channels, can incur additional charges, ranging from a few dollars to over $15 per month per channel.

b. Sales Forecast?

Based on thorough market research and analysis, we anticipate steady growth and profitability for Galaxy® Cable TV Network, Inc. Our projected revenues for the next three years are as follows:

First Fiscal Year (FY1): $450,000
Second Fiscal Year (FY2): 800,000
Third Fiscal Year (FY3): $1.4 million

c. Estimated Profit You Will Make a Year?

The ideal profit margin we hope to make at Galaxy® Cable TV Network, Inc. will be between 10 and 25 percent on service charges.

d. Profit Margin of a Cable TV Network Service Company

Galaxy® Cable TV Network, Inc. will work with a profit margin of 15 percent for the first year of the business and subsequently 20 and 25 percent.

Growth Plan

a. How do you intend to grow and expand? By opening more retail outlets/offices or selling a Franchise?

Galaxy® Cable TV Network, Inc. will grow our cable TV network service company by opening other offices in key cities in the United States of America within the first five years of establishing the business.

b. Where do you intend to expand to and why?

Galaxy® Cable TV Network, Inc. plans to expand to the following cities shortly.

Denver, Colorado
Miami, Florida
Chicago, Illinois
Houston, Texas
New York City, New York
Los Angeles, California
Dallas, Texas
Atlanta, Georgia
Seattle, Washington
Phoenix, Arizona

The reason we intend to expand to these locations is the fact that available statistics show that the cities listed above have the highest and thriving media and entertainment market in the United States.

Exit Plan

The founder of Galaxy® Cable TV Network, Inc. plans to exit the business via family succession. The company has placed structures and processes in place that will help us achieve our plan of successfully transferring the business from one family member to another and from one generation to another.

The company has successfully developed a detailed transition plan to smoothly hand over responsibilities to the new successor. This includes transferring ownership, training key personnel, and communicating with employees, customers, and suppliers about the change.