Sure, cord-cutting might be the new fad, but the idea of having multiple subscriptions to Netflix, Hulu, Amazon Prime and so on isn't appealing to everyone.
That's where cable alternative Layer3 comes in. The Denver startup with $100 million in funding wants to take on cable giants—you know, Comcast and Time Warner—and CEO and founder Jeff Binder thinks he's found the perfect model to do so.
"On the one hand, there’s been a lot of talk about cord-cutting and moving away from TV, but honestly that’s not what we’ve been seeing," Binder told DC Inno. "There’s a relief in the market space that there’s competition and innovation. We get 'Finally' all the time."
The 4K-ready box comes with bluetooth and Internet of Things capabilities, two USB ports, over 250 channels—with more than 200 in HD—and over 15,000 On Demand options. Users can also record up to eight shows at once, and the box can connect through ethernet or wireless, allowing them the ability to put their cable box anywhere in a room without worrying about reaching a cable port. The box also lets you check in with your Facebook and Twitter feeds right from your television.
Prices start at $80 and go up to $150 per month. Layer3 rolled out in the D.C. area this past summer, and it's also available in Chicago.
What also sets them a part? Customer service, Binder says. "We don’t locate customer care to India," he said. "People are buying American, and they’re being supported by Americans, and that helps because it’s hard for somebody 12,000 miles away who has never seen your product to understand what you’re going through and to support you."
Binder said the company decided to target cable customers, rather than compete for cord cutters, because of the innovation options available in the cable industry.
"Online options don't offer the breadth and quality that more historically disruptive models offer," Binder said. "That might change, but consumers don't want to wait for a spinning wheel every time they switch the channel."
So sticking to a cable box just made more sense when Binder was looking for a way to disrupt the space. And Binder said he's able to remain cost competitive with the other cable giants, despite offering a variety of technology not necessarily seen in the cable space.
Binder said that a lot of the pricing works for them because it is a smaller company than Comcast or Time Warner. The company does not disclose how many users they have in a market, but Binder said the customer base continues to grow in D.C.
"We’re taking everything to the next level. There’s no one standout piece," he said. "But collectively there are a bunch of really interesting things that we’re doing that no one else is that makes it a much better experience."
Photo courtesy of Layer3 TV
