Here's one reason overall profits face potential pressure as a result of the recession: Cablevision and Verizon are offering new dual-play or triple-play customers between $150 and $200 in gift cards. At the very least, such tactics raise the marketing cost for each new subscriber or revenue unit.
Verizon has been offering new triple play customers $150 gift cards since April and Cablevision now is offering $200 gift cards until June 30.
To receive the $200 American Express card, Cablevision customers have to maintain Optimum Online and Optimum Voice service for four months.
The potential impact on average revenue per user is a bit more complex, as the new Cablevision promotion does not necessary represent a discount on monthly pricing.
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