Satellite TV service Orby TV has found a niche in the market with a business that’s small yet viable, with under 20 employees and needing just 100,000 subs to break even. CEO Michael Thornton explains the business model for the scrappy upstart.
How does Orby TV’s business model differ from its competitors?
Orby TV was launched a year ago with the fundamental premise that many Americans are sick and tired of paying $100-$150+/month for their pay television, yet enjoy the terrific lean-back experience and reliability offered by traditional platforms. Orby TV service starts at $40/month (all taxes/fees incl.) for a wide assortment of cable channels, yet with a prepaid/pay-as-you-go business model with no credit checks or contracts. And you don’t need an expensive broadband connection.
Customers purchase and arrange for professional installation of the affordable equipment and can turn the service on and off with a simple swipe of the app or an easy phone call. Even when not subscribing, the customer pays nothing and yet still enjoys free local broadcast channels and use of the Orby TV IPG on-screen guide.
Who do you consider your biggest competition?
While Orby TV uses tried-and-true satellite technology to deliver services, it stands alone as the only traditional platform dedicated to the pay-as-you-go model, and is filling the void left in the larger pay TV marketplace; analogous to that filled in the pre-paid wireless phone market for those wanting value.
And remember, with Orby TV as a satellite service, there is no requirement for costly high-speed Internet service, which makes it a great option for those folks who don’t want to hassle with switching TV inputs or remembering multiple usernames and passwords.
Who is your target consumer?
With a $40/month starting price point, Orby TV has particularly high appeal for value-conscious consumers looking to trim their TV bill, but still have access to a wide array of cable channels
A key market for Orby TV are the many Americans – particularly those who are older – who enjoy the ease of use and simplicity in experience of picking up the remote, hitting the power button, hitting channel up/down, leaning back and enjoying quality television. Orby TV has customers in all of the lower 48 states.
Why is the cost so low to consumers?
Orby TV has done a great job in sourcing suppliers around the globe that enable us to offer high-quality equipment and a first-class consumer experience – complete with DVR service available – at a low price point. With best-in class partners handing broadcast operations, authentication, billing, customer care and more, we can maintain a lean staff and operate a transparent business model with a non-promotional everyday low price point.
Plus, with locals provided through the Orby TV-provided digital antenna and no dedicated expensive sports programming, we make the model work and stand out competitively as a unique offering in the larger pay TV marketplace.