Retail Observer

RETAILOBSERVER.COM OCTOBER 2016 56 E arlier this year we reported on consumers opting to reduce or eliminate the cable TV portion of their monthly bills. According to a study by SNL Kagan (media & communications analysts) the number (812,000) represents a decline in homes receiving video channels from a cable, satellite or telephone company compared with the first quarter of 2016. Also reported are year-to-year comparisons. The rate of decline escalates with Q2 2016 losing 1.4 million subscribers when compared to second quarter 2015. With more options than ever before, consumers are drawn to online video services such as Netflix, Amazon.com, Hulu, CBS All Access, etc. Many younger viewers are choosing to watch programming via phones and tablets, and honestly prefer it. At our recent MEGA Group Convention in Nashville, I hosted a workshop for members interested in tapping into and profiting from this growing segment of the market. As an independent retailer, it's critical to stay aligned with what your customer wants in a constantly changing environment. But with this change to a more digital-based TV platform, your big play comes from the other half of the cord-cutting business; that is, antenna-related accessories and services. The fact is that to enable the reception of local over-the-air free channels a consumer needs some sort of a TV antenna. Antennas and other necessary accessories are highly profitable, and you should be selling them today. But to really succeed, you and your sales staff must become an advisor and problem solver. Amazon cannot do that. Help your customer understand what size antenna he needs based on where they live. They might need an antenna rotor if highly directional signals are coming from different areas. They'll need a method of mounting the antenna to the rooftop, or in the attic. And of course there's the RF cable they'll need to bring the signal to the TV set. More than one TV—they'll need a signal splitter or two. The list goes on. Think beyond the merchandise you sell and create a turn-key program for your customers. Maybe they're uncomfortable installing the antenna themselves. Here's an opportunity for you to get into the (relatively easy) installation business. If you already have service techs, keep them busy with this add-on. Once you've determined you want to do this. Get the word out. Incorporate this message into your existing advertising, add it to your website, share it via your social channels, and tell customers that come in. And, don't forget the banner in the window or on the exterior wall. GETTING STARTED Dozens of electronics distributors carry all the products you'll need. Many also carry wireless routers so you can address and make additional sales from the smart side of TVs and portable devices. Find the distributor in your market who is the expert and who can also make YOU the expert in your town. Frank Beer Consumer Electronic Trends Frank Beer is a regional manager with MEGA Group USA and a former Radio Shack executive and store owner.. RO 812,000 PAY-TV SUBSCRIBERS CUT THE CORD SECOND QUARTER OF 2016

• Cover