Altice USA

Company report, featuring a PESTLE, Porters Five Forces, 5C, MOST, CATWOE and SWOT analysis

Introduction

This detailed analysis of Altice USA is part of our extensive research on the world’s 10,000 biggest companies. We’re constantly updating this report to make sure you always have access to the most recent information.

Premium members can gain full access to this study on Altice USA, including the SWOT analysis, PESTLE, 5C analysis, CATWOE, Porters Five Forces, MOST analysis, and a myriad of additional high value sections.

We identify opportunities for new products and/or services, predict future market trends, and assess the potential for collaborations between Altice USA and other organisations.

Company Description

Altice USA is a telecommunications and media company headquartered in New York City. Founded in 2015, Altice USA offers a broad range of products and services including cable television, internet, voice, and advertising. Its main products and services include digital TV, high-speed internet, and phone services. Altice USA serves customers in 19 states across the United States, as well as in the Caribbean and French Overseas Territories.

Industry Overview

Altice USA operates in the telecommunications industry, which is estimated to be worth $200 billion in the US. This industry employs around 1.2 million people in the US and Canada. The majority of these employees are based in the US and Canada, working in areas such as customer service, network engineering, and software development. Additionally, the industry provides services to many countries around the world.

Industry Classification

In terms of formal classification, Platform Executive has tagged Altice USA as a business operating within the Broadcasting industry.

1. Introduction
2. Company Description
3. Industry Overview
    3.1 Industry Classification
4. Intellectual Property
5. Major Products and Services
6. Key Competitors
7. Stakeholders
8. Value Proposition
9. Customers and Cohorts
10. Competitive Advantages
11. Market Trends
12. Key Performance Indicators
13. Financials (BETA)
    13.1 Highlights
    13.2. Board members
    13.3 Share Performance
    13.4 Income Statement
14. PESTLE Analysis
15. Potential Products/Services
16. Potential Synergies
17. Porter's Five Forces
18. CATWOE Analysis
19. SWOT Analysis
    19.1 Strengths
    19.2 Weaknesses
    19.3 Opportunities
    19.4 Threats
20. 5C Analysis
21. MOST Analysis
22. Innovation Scorecard
23. Appendices

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Intellectual Property

Some of the Patents granted to, or relevant to the organisation include the following:

Patent Title: Method and Apparatus for Enhancing Video Programming Services
Patent ID: US10683533
Date: 2020-06-16

Patent Title: System and Method for Enabling Video Services
Patent ID: US10683527
Date: 2020-06-16

Patent Title: System and Method for Controlling Access to Video Content
Patent ID: US10683509
Date: 2020-06-16

Patent Title: System and Method for Controlling Access to Video Content
Patent ID: US10677360
Date: 2020-06-09

Patent Title: System and Method for Delivering Video Content
Patent ID: US10677330
Date: 2020-06-09

Patent Title: Dramatic Series Recommender
Patent ID: US10672021
Date: 2020-06-02

Patent Title: System and Method for Controlling Access to Video Content
Patent ID: US10667498
Date: 2020-05-26

Patent Title: System and Method for Controlling Access to Video Content
Patent ID: US10662776
Date: 2020-05-19

Patent Title: System and Method for Controlling Access to Video Content
Patent ID: US10660887
Date: 2020-05-12

Patent Title: System and Method for Controlling Access to Video Content
Patent ID: US10657210
Date: 2020-05-05

Major Products & Services

The main products and/or services commercialised by this business include the following:

Optimum - Cable TV, internet, and phone service
Suddenlink - Cable TV, internet, and phone service
Altice Mobile - Nationwide wireless service
Altice One - An all-in-one entertainment, Wi-Fi, and communications platform
Altice Amplify - Smart home device that allows users to control their home from one device
TiVo - Digital video recorder
Altice Business - Business-grade internet, phone, and cable services
Altice Ads - Advertising solutions and marketing services for businesses

Key Competitors

We have identified the following organisations as being key competitors:

Comcast
Charter Communications
Cox Communications
AT&T
Verizon
Dish Network
RCN
WOW! Internet
Wave Broadband
Frontier Communications

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Key Stakeholders

Stakeholders are individuals or groups who have an interest in a business and/or are affected by its actions.

These stakeholders can have different requirements and expectations from the business, which must be taken into account when making decisions.

By understanding their stakeholders’ requirements, a business can make informed decisions that benefit all involved.

Below is the list of internal and external stakeholders we have identified for this business:

1. Customers: Altice USA's customers are their core stakeholders, as they are the ones who purchase their services and products.

2. Employees: Altice USA's employees are a key stakeholder, as they are the ones that help drive the company's success through their dedication to providing quality services and products.

3. Shareholders: Altice USA's shareholders are a key stakeholder, as they are the ones that provide the capital required for the company to grow and develop.

4. Suppliers: Altice USA's suppliers are a key stakeholder, as they provide the materials and services necessary for the company to operate.

Value Proposition

A value proposition explains the unique value and/or benefits that an organisation provides to its customers, partners, stakeholders and the overall market. It outlines what makes a company like Altice USA different from its competitors, along with what it can offer that key competitors cannot.

A corporate value proposition can be used with the competitive advantages section of this report in order to better understand Altice USA and its position within the marketplace.

Altice USA is a digital media and entertainment company that delivers premium content and services to its customers across multiple platforms. The company offers a wide range of programming, including live and on-demand sports, news, entertainment, and children's programming. Altice USA also provides its customers with a suite of video-on-demand (VOD) and live-streaming services, as well as a variety of content and app offerings.

Competitive Advantages

Competitive advantages are unique attributes, strategies, resources, or capabilities that allow an organisation to outperform its competitors and achieve superior market position and profitability.

Competitive advantages for the business include the following:

Network and Infrastructure: Altice USA has invested significantly in its network and infrastructure, providing customers with access to the most reliable and advanced fiber-optic technologies available. This investment has enabled Altice USA to offer customers a wide range of services, including high-speed internet, digital TV, and phone services.

Innovative Technology: Altice USA has been at the forefront of developing innovative technologies that are designed to enhance the customer experience. These technologies include the Altice One and TiVo platforms, which allow customers to watch their favorite shows and movies on multiple devices and manage their entire home entertainment experience in one place.

Affordable Pricing: Altice USA offers some of the most competitive pricing plans in the industry. By bundling services, customers can save money and get the most value for their money. Altice USA also offers no-contract plans, which allow customers to switch services at any time without penalty.

Excellent Customer Service: Altice USA provides customers with excellent customer service, offering 24/7 technical support and a variety of customer service options. Customers can also access helpful educational resources through the Altice USA website.

Customers & Cohorts

As part of this competitive intelligence study, we have identified the main customers of the organisation.

These include the following cohorts:

Residential customers
Business customers
Government customers
Education customers
Hospitality customers
Carrier customers
International customers

Market Trends

Market trends can impact an organisation by influencing consumer behavior, altering supply and demand dynamics, and affecting the organisation's ability to remain competitive in the market.

As part of this study, we have identified a number of potential short-term to medium-term trends that could impact the organisation. These include the following:

Consolidation of Media and Telecom Industries: The media and telecom industries have been experiencing high levels of consolidation in recent years, and this trend is likely to continue. This could have a significant impact on Altice USA, as it could lead to increased competition for subscribers and new opportunities for partnerships.

Rising Demand for High-Speed Networks: With the proliferation of streaming services and faster internet speeds, consumers are increasingly demanding higher connection speeds from their providers. This could lead to Altice USA needing to invest in upgrading its network infrastructure to remain competitive.

Growing Popularity of Video Streaming: Video streaming has seen an exponential rise in popularity in recent years, and this trend is likely to continue. This could have a significant impact on Altice USA, as it will need to adapt to an increasing demand for streaming services and content.

Increased Adoption of Mobile Devices: As more consumers adopt mobile devices, Altice USA will need to develop strategies to better cater to this segment of the market. This could involve investing in mobile-friendly content, or offering more tailored packages to mobile users.

Key Performance Indicators

Below is a list of KPI's that we have identified as being strategically relevant to this organisation:

Financials (BETA)

The key financials for Altice USA include income statements, which can be found in their annual reports. These financial statements provide information on the organisation's financial performance and health, including revenue, expenses, and profits. This information, along with other indicators are used by investors, analysts and other stakeholders to evaluate the company's performance and future prospects.

Where a financial does not match, we have included those of the parent company (if a listed entity). If the financials are missing please contact us and we will prioritise the update.

Key Personnel

Income Statement

[eod_financials target="ATUS.US" id="10329343" preset="Income Statement" years="2018-2023"]

Highlights

Top-level corporate stats and financial highlights for the listed entity, include:

Share Performance

Below is the current (EOD) share performance for the company, or its listed parent:

Potential Products/Services

As part of this study we have attempted to prognosticate potential products and/or services this organisation could develop in the short to medium-term.

Home Automation Services: Altice USA could create home automation services that allow customers to control lights, thermostats, security systems, and other home appliances from their TV or mobile device.

Home Security Services: Altice USA could offer home security services that include monitoring, surveillance, and security system installation.

Online Storage and Backup Solutions: Altice USA could create an online storage and backup solution that allows customers to store and back up their data on secure servers.

Value-Added Services: Altice USA could offer value-added services such as premium movie and sports channels, pay-per-view events, and more.

High-Speed Internet Solutions: Altice USA could create high-speed internet solutions for customers who want to stream content, watch TV online, or surf the web quickly.

Connected Home Services: Altice USA could offer connected home services that allow customers to control and monitor their home devices such as lights, thermostats, and more.

Telecommunications Solutions: Altice USA could create telecommunications solutions such as VoIP, hosted PBX, and cloud-based phone systems.

Home Network Solutions: Altice USA could offer home network solutions such as routers, switches, and wireless access points.

Potential Synergies

Using our product and portfolio-matching algorithm, we have determined that the following organisations have potential synergies with the company:

1. Cisco Systems
2. Microsoft
3. IBM
4. Amazon
5. Google
6. Oracle
7. Apple
8. AT&T
9. Comcast
10. Charter Communications

Porter's Five Forces

Created by Harvard Business School Professor Michael Porter in 1979, Porter's Five Forces model is designed to help analyse the particular attractiveness of an industry; evaluate investment options; and better assess the competitive environment.

The five forces are as follows:

Competitive rivalry
Supplier power
Buyer power
Threat of substitution
Threat of new entries

The Porters 5 forces for Altice USA are:

1. Supplier Power: LOW

2. Buyer Power: HIGH

3. Competitive Rivalry: MEDIUM

4. Threat of New Entrants: MEDIUM

5. Threat of Substitutes: LOW

Altice USA scores relatively WELL in relation to the Porters 5 forces. The company has LOW supplier power, due to the fact that there are many suppliers of telecommunications services. The company has HIGH buyer power, due to the fact that there are many buyers of telecommunications services. The company has MEDIUM competitive rivalry, due to the fact that there are many competitors in the telecommunications industry. The company has MEDIUM threat of new entrants, due to the fact that the telecommunications industry is not particularly easy to enter. The company has LOW threat of substitutes, due to the fact that there are not many substitutes for telecommunications services.

PESTLE Analysis

This PESTLE analysis is a strategic planning tool that assesses key external factors affecting the organisation, including the following:

Political
Economic
Social
Technological
Legal
Environmental

Each of these factors is analysed to determine their impact on the organisations strategy, objectives, and operations.

By utilising a PESTLE analysis, the organisation can make better decisions and develop strategies to address potential risks and opportunities.

CATWOE Analysis

The CATWOE analysis is used to investigate each stakeholders perspectives in order to enable the business to make informed decisions.

The CATWOE analysis is a problem-solving tool consisting of six elements:

Customers
Actors
Transformation process
World view
Owners
Environmental constraints

We view the CATWOE as being most useful when used in conjunction with other problem-solving tools such as a SWOT analysis.

Customers: Altice USA provides digital television, internet, voice, and mobile services to residential, business, and enterprise customers in 21 states.

Actors: The main actors in Altice USA are the customers, employees, and partners. Customers purchase the services Altice USA provides, and employees and partners help to deliver the services.

Transformation process: Altice USA provides customers with access to a variety of services, including digital television, internet, voice, and mobile services. Customers purchase these services which then are delivered by the employees and partners of Altice USA.

World view: Altice USA seeks to provide customers with the best possible service, while also striving to be a leader in the telecommunications industry. Altice USA also strives to be a responsible corporate citizen, focusing on environmental sustainability and social responsibility.

Owners: Altice USA is a subsidiary of Altice N.V., a multinational telecommunications company based in the Netherlands.

Environmental constraints: Altice USA must comply with all applicable laws and regulations, including those related to consumer protection, data privacy, and environmental sustainability. Additionally, Altice USA must also be mindful of competition in the telecommunications industry and the need to remain competitive in order to provide quality services to customers.

SWOT Analysis

This SWOT analysis is a strategic planning tool used to assess the strengths, weaknesses, opportunities and threats of the Altice USA business.

When creating this SWOT the team at Platform Executive have taken into consideration the corporate strategy; brand; key financials; the competitive landscape; along with the products and/or services offered.

To offer increased context for future innovation and product development we also consider the historical context for the business and industry; and perceived direction of travel.

Upon researching the company, we have uncovered a number of strategic and operational strengths, weaknesses, opportunities and threats.

Strengths

Below is a list of the strengths we have identified for the business:

1. Altice USA's strategic strengths include its aggressive expansion strategy, strong focus on operational efficiencies, and solid financial position.

2. Aggressive expansion has been a key driver of Altice USA's growth, with the company completing a series of acquisitions to build scale.

3. A focus on operational efficiencies has helped Altice USA to drive down costs, while maintaining a high level of customer service.

4. Altice USA's solid financial position provides it with the flexibility to continue its expansion strategy and invest in new growth opportunities.

Opportunities

Below is a list of opportunities we have identified for the business:

1. Expand its fiber and cable networks to reach more US households. Altice USA has the ability to reach more households in the US with fiber-optic and cable networks, which would enable it to offer more services and products to its customers.

2. Leverage its existing portfolio of assets. Altice USA has a range of assets in its portfolio, including mobile phone and broadband services, as well as its core cable TV offering. It could use these assets to create new products and services, as well as to gain access to new markets.

3. Increase its focus on customer experience. Altice USA has the opportunity to improve its customer experience by investing in customer service and developing new technologies that provide better customer service.

4. Invest in content. Altice USA could use its financial resources to invest in content, such as acquiring rights to broadcast sports and entertainment programming, which would help to attract more customers.

Weaknesses

Below is a list of the weaknesses we have identified for the business:

1. Lack of significant scale in the United States: Altice USA is the fourth largest cable operator in the United States with approximately 4.9 million residential and business customers. This is significantly smaller than market leaders Comcast (22 million) and Charter Communications (16 million).

2. Limited geographic footprint: Altice USA’s operations are primarily concentrated in the Northeast region of the United States. This limits the company’s ability to expand its customer base and generate growth outside of its core markets.

3. High levels of debt: As of December 31, 2017, Altice USA had approximately $22 billion of debt on its balance sheet. This high level of debt can put pressure on the company’s finances and limit its ability to invest in future growth opportunities.

4. Dependence on the cable television business: Altice USA’s business is primarily focused on the cable television industry. This reliance leaves the company exposed to potential disruptions in the sector, such as the cord-cutting trend that has been negatively impacting the pay-TV industry in recent years.

Threats

Below is a list of the threats we have identified for the business:

1. Competitive pressure: Altice USA faces strong competition from rival cable operators such as Charter Communications and Comcast. These rivals are investing heavily in developing new technologies and expanding their networks, making it difficult for Altice USA to keep up.

2. Customer churn: Altice USA has seen a steady increase in customer churn in recent years. This is due largely to customers switching to other providers due to lower prices, better customer service, and more competitive packages.

3. Network reliability: Altice USA has been plagued by a series of network outages and slow speeds in recent years. This has led to customer dissatisfaction and is a threat to the company’s reputation and long-term growth prospects.

4. Regulatory changes: The cable industry is subject to numerous regulations, and any changes could have a significant impact on Altice USA’s operations and profitability. For example, if the Federal Communications Commission were to implement new restrictions on data caps, it could reduce Altice USA’s ability to charge more for its services.

5C Analysis

The 5C Analysis is a marketing framework that can be used to provide insight into the key drivers of success, as well as the risk exposure to various environmental factors.

This (concise) 5C analysis examines the external and internal environment for Altice USA. It includes analysing the company's customers, competitors, collaborators, context, and capabilities. We have produced this short analysis to identify potential opportunities and threats to Altice USA, as well as areas where the company needs to improve its operations or strategy.

Company: Altice USA is a leading media, entertainment, and communications provider in the US. It offers products and services in broadband, video, mobile, and advertising, among others. It has an extensive and growing network of customers, offering a broad portfolio of services to over 4.6 million customers.

Collaborators: Altice USA partners with a number of content providers, including entertainment companies, telecoms, and cable providers. These partnerships allow them to offer customers access to a wide range of content, from streaming services to traditional cable programming.

Customers: Altice USA's customers are primarily residential and business customers. They offer a variety of services, from traditional cable TV and high-speed internet to mobile phone plans, with the goal of providing a comprehensive suite of products and services to meet the needs of their customers.

Competitors: Altice USA is up against some of the largest companies in the telecommunications industry, including AT&T, Verizon, Comcast, and Charter. They also face competition from smaller providers, such as Google Fiber and T-Mobile.

Content: Altice USA offers a variety of content, ranging from traditional cable TV programming to streaming services. They also offer a range of premium content, such as HBO and Showtime, as well as on-demand and live sports programming. They also have a wide array of international content, from news and entertainment to sports.

MOST Analysis

The MOST analysis framework is commonly used to identify an organisation's strategic goals, assess its strengths and weaknesses, and develop a plan to achieve its objectives. This analysis helps organisations to focus on what they want to achieve and how to achieve it, while also identifying potential roadblocks or obstacles that may arise along the way.

Mission
Objectives
Strategy
Tactics

We have created this analysis from a 3rd person perspective.

Innovation Scorecard

As part of our research and analysis activity, the team at Platform Executive assesses and then benchmarks businesses and the industry verticals in which they operate using a proprietary scoring mechanism.

First, we allocate a score of A-E for the industry vertical, gauged on the key organisations operating within the space; and then score the individual business using a 1-5 score.

A score of D-E within an industry means that it is potentially ripe to be disrupted by a new entrant into the marketplace; and/or vulnerable to technological change.

Likewise, a high score of 4-5 for the company in question indicates that in the view of the analysis team it lags behind notable businesses in terms of innovation and product pipeline.

Below is a guide to each score:

Industry score:

A	The industry is amongst the most innovative; with the leading players all driving the sector forward. Example industry: PaaS
B	The industry and its leading players have a good track record of innovation; and can quickly react to change. Example industry: Pharmaceutical
C	Companies operating within the sector have adequate levels of innovation; and engage in R&D activities when appropriate. Example industry: FMCG
D	Businesses operating in the industry do not invest enough time and resource into innovation. The sector is stagnant and a good candidate for disruption. Example industry: Retail Banking
E	The major players in the sector seem to lack suitable product development roadmaps; and as a result the sector is highly vulnerable to industry change. Example industry: Publishing

Company score:

1	The business is amongst the leading players in terms innovation and product pipeline. This will fulfil and reinforce the operations of the business in the medium to long-term.
2	The business has a good track record of innovation, in terms of its products and/or its business model. It is therefore more likely to be able to react and adapt to any changes to the industry.
3	The business is deemed to have an adequate innovation plan, build on research and development and sustainability where appropriate. The business has a product development strategy.
4	The business needs to invest more resource and/or intellectual capital in product development, pipelines and/or its business model. The business is at risk of stagnation.
5	The business seems to lack a suitable product development roadmap; and as a result is vulnerable to any notable industry change and/or new entrants in the marketplace.

The team at Platform Executive has judged Altice USA as having an innovation score of B2.

Appendices

The appendices section of this report contains supplementary information that the team at Platform Executive deems helpful in providing a more comprehensive understanding of the report's contents.

This information is not considered an essential part of the study but serves as a useful supplement to the main text.

Methodology

This study on Altice USA forms part of our series of competitive intelligence reports, which focuses on 10,000 of the largest corporates.

The information and data included are updated on a timely schedule to ensure that our Premium members receive the most up to date information .

The report is based on information and learning from the following sources:

Corporate websites
Proprietary research databases
SEC Filings
Corporate press releases
News articles
Financial data API's
Product-matching algorithm

Further Information

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Disclaimer

Reproduction of the content produced in this report is prohibited without the prior permission of the publisher, Platform Executive Pty Ltd.

The facts of this report have been gathered in good faith from both primary and secondary sources. It is believed to be correct at the time of publication, but cannot be guaranteed. As such Platform Executive can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

Changelog

Premium members: To request a priority update to this report, please contact us. Our standard turnaround time is normally 48 hours.

The changelog for this report can be found below, complete with the next scheduled update:

v1.1: Initial load of report
Date: 1st March 2023

Key Financials added (BETA)
Date: 17th March 2023

Next scheduled update: 6th June 2023

Industry Keywords

Related keywords:

broadband Cable media Telecommunications

Moody’s