In Chile, WOM prepares to roll out pay TV offer with pilots

In Chile, WOM prepares to roll out pay TV offer with pilots

If WOM entered the mobile business strongly in 2015 based on an aggressive commercial strategy, on its sixth anniversary it is preparing to replicate this formula in the pay television market, betting on 40% lower prices compared to operators and current providers, competing for subscribers to firms such as VTR, DirecTV, Movistar Play, Claro and Entel, based on a different offer of content via streaming.

In November, the firm linked to the Icelandic fund Novator Partner started the first test phase of this new line of business with company workers, and in recent weeks they launched the pilot in the Metropolitan Region with end users. Thus, although they do not have a definitive date for the debut, the operator will soon deploy a new product from its portfolio.

According to the company’s marketing manager, Sebastián Precht, WOM TV – brand name – seeks to be “disruptive and different” and that aims to attract an audience that is not satisfied with other available services. For this reason, he said, it took three years to come up with an operating formula that mixes the world of cable and the input of Over The Top (OTT), Netflix type into the equation.

Financial Journal

Business modelThe idea of ​​how to build the business landed in the middle of the pandemic, when the consumption of television content soared, but also the claims in telecommunications services. In addition, in 2020 Disney plus and Amazon Prime entered the market to compete in Chile, which increased the pressure in that market.

For this reason, a model was thought of that would function as an intermediary between the user and the content distributors, with a base price of US $ 8.0179, which rises as channels are added to the platform.

Through the motto “cut the cable and take control”, WOM aims to make it possible for the customer to choose their channel grid themselves, seeking to differentiate themselves from the logic of the package offers of the large cable operators in the market. “Subscribers don’t know why they have to pay such a high price for an infinite number of channels they don’t watch; that’s why we redefined this old-school idea and put together a product one by one, ”he commented.

Since the idea is to approach the on demand mode, if the user already has contracted the services of Netflix, Amazon Prime or other similar, it can be transferred to the WOM TV platform or even hired through it, and the price is added in the final ticket.

Through this mechanism, he explained, it is intended to “simplify” the access and output of content, a function that will become the workhorse to enter to compete in a market with a high presence of rivals.

“The client takes 15 seconds to contract any television service, but when he wants to unsubscribe, he waits hours in the call center. They also derive it with different operators until you finally get them to understand that you want to cut a particular content. We want to eliminate these barriers so that access and exit are similar, giving a good customer experience, “said Precht.

This pilot is already available via mobile application or through a television device. There are currently 2,500 subscribed users, but it can be hired at the branches of Plaza Alameda, Ahumada, Costanera Center, Maipú, Mall Pumay, Arauco Maipú, Plaza Norte, Mall Independencia, Concha y Toro, Gran Avenida, Huérfanos, Las Rejas, Plaza de Armas, Vitacura, Colina and Apumanque. “This is not a final product and, therefore, it is not massive. We continue to refine details, “said Precht.

Currently, the providers that provide services through WOM TV are Netflix, TNT Sports, HBO, national channels, among others. And up to four users can be connected.

The advance of broadbandAlmost six months ago, WOM debuted its broadband services through fiber optics. In his balance, Precht said that the brand has had a good reception, especially in the communes of La Florida, Maipú, and Santiago Centro, due to the population density.

The idea is to cover most of the Metropolitan Region, but the commercial strategy aims to enter areas with massive connectivity problems. “We want to connect with the average Chilean, first in Santiago and then in regions. This is complemented by the National Fiber Optic project to have a national scope ”, he said.

Regarding the growth formula, WOM does not rule out hiring the services of a wholesale operator such as KKR -the US fund that bought Movistar Chile’s fiber optic subsidiary-, but for now it will continue with its own deployment.


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