Tuesday, March 20, 2012

LUS Fiber to Get Commercial Income Stream

LUS Fiber recently announced that it was partnering with Viamedia to offer businesses the ability to insert commercials into the cable video stream. Viamedia aggregates ads nationally and provides sales services both locally and nationally. So LUS Fiber will be looking at adding an additional revenue stream from the direct sale of advertising. Since LUS Fiber currently has about 1/3 of Lafayette households both local and national advertisers will gain a way to access the whole Lafayette cable market by purchasing ads on both LUS Fiber and Cox. 


Viamedia fills a hole in the advertising market in places where there is no single cable provider in a DMA— a "Designated Market Area." Most cities these days have only one cable company and that company is large enough that it has its own advertising marketing machine. Viamedia exploits the hole that's left in DMA's where there is no overwhelmingly dominant provider and offers ways to, for instance, market to all of Chicago or all of the Atlanta region. Advertisers who once could get the Lafayette market with a single buy through Cox now need to get onto LUS Fiber.


This isn't particularly exciting stuff, granted. But it's a sign of the growing maturity of the local network and it adds real revenue. 


—Viamedia issued its own press release

4 comments:

Anonymous said...

what is the total debt of LUS fiber, bonds, LUS Utilities, and In lieu of tax owed?

John said...

Anono...real identity please.

Don't know a total. But "In lieu of taxes" should be excluded if you're looking for a total indebtedness. It is not "owed." It is straightforwardly collected by LCG. There is no legal minimum or maximum that I am aware of.

Kyle said...

I just found your blog and I have an off-topic question, but I couldn't find a way to contact you directly.

Do you know if LUS has any plans to expand residential fiber service to Carencro (or other surrounding cities within the parish)? What do you think it would take on the part of the city and/or residents to make that expansion happen? /TiredOfPayingCox

John said...

Kyle,

I don't know of any immediate plans to extend the network to residences outside Lafayette. I do know it is a long-term ambition and that LUS Fiber has extended its network to every school in the parish so it has an extensive backbone from which to work.

What would help get LUS Fiber into the surrounding municipalities would be an invitation from the community. LUS is a city-owned network but it is also controlled by LCG...so real demand from a community would be very influential. It costs a lot of money to build out that final mile. So the VERY best way would be for a city to get its citizens to pledge to sign up at something like a 50% rate. That would take the risk out of the game for them, ensure that they'd not be risking the city's capital at a time when they are still trying to ensure that the basic network is paid for.

My 2 cents. I DO think it'd be a really great thing and would add to the value of the network for city residents too—I can communicate with folks in the city at 100 megs (sweeeeet) now but I have family in Broussard with which I cannot do the same fun things very easily.