ITV

Tag: ARPU

  • US Cable TV Industry Report: Video Subscribers again up, Business Services revenue continues to climb

    US Cable TV Industry Report: Video Subscribers again up, Business Services revenue continues to climb

    BENGALURU: For the second consecutive quarter, three of the biggest cable TV entities in the US have reported quarter-over-quarter (q-o-q) growth in video subscribers, along with the regular increase in overall video revenue for the quarter ended 31 March 2016 (Q-16, current quarter). Q1-16 also saw year-over-year (y-o-y) growth in video revenue and subscribers. Despite the increase in video subscribers, the percentage of subscribers opting for video services vis-à-vis customer relationships has declined both y-o-y and q-o-q. Another player – Verizon reported adding 36,000 net video subscribers to its wireline Fios video services in the current quarter. Overall revenue numbers were up, with video revenue increasing along with revenues from other services and streams.

    Comcast Cable Communications segment, Time Warner Cable (TWC) and Charter Communications (Charter) are the three sample players whose numbers have been used in this paper to arrive at generalisations for the US Cable TV industry. All have three major revenue streams – Video, Internet and Voice (VIVE). Besides VIVE, other revenue streams include advertisement and ‘others’. It may be noted that Charter Communications has completed the transactions with Time Warner Cable and Bright House Networks, and soon the name of the products offered by the joined entity will be under the brand Spectrum.

    Business Services Revenue continued to grow in Q1-16. Contribution by Business Services to overall revenue also continued to grow in the current quarter while contributing to the growth of overall Average Revenue Per User (ARPU) for the players as well. Another factor that contributed to overall ARPU increase was the growth in percentage of Triple Play consumers in overall customer relationships. Broadband or High Speed internet segments of the three players reported the highest growth among the three major service streams, with Voice showing the next highest growth. Video grew the least among the three services.

    According to a US Federal Communications Commission (FCC) report, the total number of Cable TV Subscribers in the US in 2012 and 2013 were 56.4 million and 54.4 million respectively. Considering the higher value of 56.4 million, the 3 players in this paper have about two thirds of the cable TV subscribers in the US. According to industry reports, the cable providers industry in the US is highly concentrated, with the top five players generating over 96 percent of revenue.

    Comcast Inc., Cable Communications (Comcast CCS) segment is the largest player by far in the US and among the sample players; Time Warner Cable, Inc., (TWC), about half the size of Comcast’s Cable communications segment in terms of revenue and Charter Communications (Charter) with revenues that are less than half again as much as TWC’s.

    Subscription numbers, revenues

    Please refer to Figures A1 and A2 below.

    In Q1-16, the combined video subscription numbers of the three players increased 0.6 percent y-o-y to 37.574 million (74.4 percent of combined customer relationships) as compared to 37.473 million (77.8 percent of combined customer relationships) and increased 0.2 percent q-o-q from 37.490 million (76.3 percent of combined customer relationships).

    Combined customer relationships in the current quarter increased 5.1 percent y-o-y to 50.488 million as compared to 48.020 million and increased 2.8 percent q-o-q from 49.114 million.

    Combined video revenues in Q1-16 increased 3.2 percent y-o-y to $9,216 million (44 percent of combined total revenue) from $8,929 million (45.6 percent of combined total revenue) and increased 1.8 percent q-o-q from $9,058 million (44 percent of combined total revenue.

    Combined total revenue in Q1-16 increased 6.9 percent y-o-y to $20,925 million from $19.569 million and increased 1.8 percent q-o-q from $20,564 million.

    Note 1:
    (a)Residential customer relationship numbers have been used in this report wherever the breakup has been mentioned in SEC filings by the concerned entity. In the case Comcast Cable Communications segment, the breakup of subscription numbers in terms of Residential and Business Services has not been indicated.
    (b) The results and the conclusions in this report may not necessarily reflect the true trends and nature of the cable communications industry in US.

    Comcast Cable Communications (Comcast CCS)

    Comcast’s CCS segment reported 0.2 percent y-o-y growth in video subscribers at 22.4 million (80.1 percent of customer relationships) in the current as compared to 22.375 million (82.2 percent of customer relationships) in Q1-15 and a 0.1 percent q-o-q growth as compared to 22.347 million (80.7 percent of customer relationships) in Q4-15.

    Customer relationships in the current quarter increased 2.7 percent y-o-y to 27.970 million from27.234 million and increased 1 percent q-o-q from 27.701 million.

    Video revenue increased 3.9 percent y-o-y in the current quarter to $5,538 million (45.4 percent of total or consolidated revenue) from $5,331 million (46.6 percent of total revenue) and increased 2.3 percent q-o-q from $5,416 million (45.2 percent of total revenue).

    Comcast CCS reported consolidated or total revenue of $12,204 million for Q1-16, up 6.8 percent y-o-y as compared to $11,430 million and up 1.9 percent q-o-q as compared to $11,980 million.

    Time Warner Cable (TWC)

    TWC reported 0.2 percent y-o-y growth in video subscribers to 10.842 million (67.2 percent of customer relationships) in Q1-16 as compared to 10.819 million (73.5 percent of total customer relationships) and also 0.2 percent q-o-q growth as compared to 10.821 million (71.5 percent of customer relationships) in the immediate trailing quarter.

    Customer relationships in the current quarter increased 9.6 percent y-o-y to 16.130 million from 14.716 million and increased 6.6 percent q-o-q from 15.129 million.

    Video revenue increased 1.6 percent y-o-y in Q1-16 to $2,508 million (40.5 percent of total or consolidated revenue) from $2,469 million (42.7 percent of total revenue) and increased 1.6 percent q-o-q from $2,471 million (40.7 percent of total revenue).

    TWC reported consolidated revenue or total revenue of $6,191 million, up 7.2 percent y-o-y from $5,777 million and up 2 percent q-o-q from $6,072 million.

    Charter Communications (Charter)

    Charter’s video subscribers increased 4.3 percent y-o-y in Q1-16 to 4.332 million (67.8 percent of customer relationships) from 4.153 million (68.4 percent of customer relationships) and increased 0.2 percent q-o-q from 4.322 million (68.8 percent of customer relationships).

    Customer relationships in the current quarter increased 5.2 percent y-o-y to 6.388 million from 6.070 million and increased 1.7 percent q-o-q from 6.284 million.

    Video revenue increased 3.6 percent y-o-y to $1,170 million (46.2 percent of total or consolidated revenue) from $1,129 million (47.8 percent of total revenue) and increased 0.3 percent from $1,167 million (46.5 percent of total revenue) in Q4-15.

    Consolidated or total revenue in Q1-16 increased 7.1 percent y-o-y to $2,530 million from $2,352 million and increased 0.7 percent q-o-q from $2,512 million.

    Average Revenue per User (ARPU) and multi-play numbers

    ARPU has been increasing as more and more customers move from single to double play and triple play and from double play to triple play. Please refer to Figures B1 and B2 below.

    Note 2:
    ARPU in the case of Charter has been estimated based on the numbers submitted by it for its residential and business services ARPU. Charter’s ARPU numbers in the above chart are likely an approximation.

    Business Services Revenue (BSR)

    All the three players offer video, data (internet) and voice services to businesses. Unlike retail customers, the proportion of data and voice services are higher than video services. Business services revenue has been growing, as has its contribution to overall revenue. BSR’s contribution to total revenue is in double digits, in the case of TWC it was 14.3 percent in Q1-16. In the case of Comcast CCS, BSR contributed $1.3 billion to overall revenue in Q1-16. Please refer to Figures C1 and C2 below.

    Note 3:
    Business services revenue numbers may have many components including revenue from the three main service streams – video, data (high speed internet) and voice as well as revenue from advertising, wholesale transport, others, etc., depending upon the entity.

    Note:
    (a)Residential customer relationship numbers have been used in this report wherever the breakup has been mentioned in SEC filings by the concerned entity. In the case Comcast Cable Communications segment, the breakup of subscription numbers in terms of Residential and Business Services has not been indicated.
    (b) The results and the conclusions in this report may not necessarily reflect the true trends and nature of the cable communications industry in US.

  • US Cable TV Industry Report: Video Subscribers again up, Business Services revenue continues to climb

    US Cable TV Industry Report: Video Subscribers again up, Business Services revenue continues to climb

    BENGALURU: For the second consecutive quarter, three of the biggest cable TV entities in the US have reported quarter-over-quarter (q-o-q) growth in video subscribers, along with the regular increase in overall video revenue for the quarter ended 31 March 2016 (Q-16, current quarter). Q1-16 also saw year-over-year (y-o-y) growth in video revenue and subscribers. Despite the increase in video subscribers, the percentage of subscribers opting for video services vis-à-vis customer relationships has declined both y-o-y and q-o-q. Another player – Verizon reported adding 36,000 net video subscribers to its wireline Fios video services in the current quarter. Overall revenue numbers were up, with video revenue increasing along with revenues from other services and streams.

    Comcast Cable Communications segment, Time Warner Cable (TWC) and Charter Communications (Charter) are the three sample players whose numbers have been used in this paper to arrive at generalisations for the US Cable TV industry. All have three major revenue streams – Video, Internet and Voice (VIVE). Besides VIVE, other revenue streams include advertisement and ‘others’. It may be noted that Charter Communications has completed the transactions with Time Warner Cable and Bright House Networks, and soon the name of the products offered by the joined entity will be under the brand Spectrum.

    Business Services Revenue continued to grow in Q1-16. Contribution by Business Services to overall revenue also continued to grow in the current quarter while contributing to the growth of overall Average Revenue Per User (ARPU) for the players as well. Another factor that contributed to overall ARPU increase was the growth in percentage of Triple Play consumers in overall customer relationships. Broadband or High Speed internet segments of the three players reported the highest growth among the three major service streams, with Voice showing the next highest growth. Video grew the least among the three services.

    According to a US Federal Communications Commission (FCC) report, the total number of Cable TV Subscribers in the US in 2012 and 2013 were 56.4 million and 54.4 million respectively. Considering the higher value of 56.4 million, the 3 players in this paper have about two thirds of the cable TV subscribers in the US. According to industry reports, the cable providers industry in the US is highly concentrated, with the top five players generating over 96 percent of revenue.

    Comcast Inc., Cable Communications (Comcast CCS) segment is the largest player by far in the US and among the sample players; Time Warner Cable, Inc., (TWC), about half the size of Comcast’s Cable communications segment in terms of revenue and Charter Communications (Charter) with revenues that are less than half again as much as TWC’s.

    Subscription numbers, revenues

    Please refer to Figures A1 and A2 below.

    In Q1-16, the combined video subscription numbers of the three players increased 0.6 percent y-o-y to 37.574 million (74.4 percent of combined customer relationships) as compared to 37.473 million (77.8 percent of combined customer relationships) and increased 0.2 percent q-o-q from 37.490 million (76.3 percent of combined customer relationships).

    Combined customer relationships in the current quarter increased 5.1 percent y-o-y to 50.488 million as compared to 48.020 million and increased 2.8 percent q-o-q from 49.114 million.

    Combined video revenues in Q1-16 increased 3.2 percent y-o-y to $9,216 million (44 percent of combined total revenue) from $8,929 million (45.6 percent of combined total revenue) and increased 1.8 percent q-o-q from $9,058 million (44 percent of combined total revenue.

    Combined total revenue in Q1-16 increased 6.9 percent y-o-y to $20,925 million from $19.569 million and increased 1.8 percent q-o-q from $20,564 million.

    Note 1:
    (a)Residential customer relationship numbers have been used in this report wherever the breakup has been mentioned in SEC filings by the concerned entity. In the case Comcast Cable Communications segment, the breakup of subscription numbers in terms of Residential and Business Services has not been indicated.
    (b) The results and the conclusions in this report may not necessarily reflect the true trends and nature of the cable communications industry in US.

    Comcast Cable Communications (Comcast CCS)

    Comcast’s CCS segment reported 0.2 percent y-o-y growth in video subscribers at 22.4 million (80.1 percent of customer relationships) in the current as compared to 22.375 million (82.2 percent of customer relationships) in Q1-15 and a 0.1 percent q-o-q growth as compared to 22.347 million (80.7 percent of customer relationships) in Q4-15.

    Customer relationships in the current quarter increased 2.7 percent y-o-y to 27.970 million from27.234 million and increased 1 percent q-o-q from 27.701 million.

    Video revenue increased 3.9 percent y-o-y in the current quarter to $5,538 million (45.4 percent of total or consolidated revenue) from $5,331 million (46.6 percent of total revenue) and increased 2.3 percent q-o-q from $5,416 million (45.2 percent of total revenue).

    Comcast CCS reported consolidated or total revenue of $12,204 million for Q1-16, up 6.8 percent y-o-y as compared to $11,430 million and up 1.9 percent q-o-q as compared to $11,980 million.

    Time Warner Cable (TWC)

    TWC reported 0.2 percent y-o-y growth in video subscribers to 10.842 million (67.2 percent of customer relationships) in Q1-16 as compared to 10.819 million (73.5 percent of total customer relationships) and also 0.2 percent q-o-q growth as compared to 10.821 million (71.5 percent of customer relationships) in the immediate trailing quarter.

    Customer relationships in the current quarter increased 9.6 percent y-o-y to 16.130 million from 14.716 million and increased 6.6 percent q-o-q from 15.129 million.

    Video revenue increased 1.6 percent y-o-y in Q1-16 to $2,508 million (40.5 percent of total or consolidated revenue) from $2,469 million (42.7 percent of total revenue) and increased 1.6 percent q-o-q from $2,471 million (40.7 percent of total revenue).

    TWC reported consolidated revenue or total revenue of $6,191 million, up 7.2 percent y-o-y from $5,777 million and up 2 percent q-o-q from $6,072 million.

    Charter Communications (Charter)

    Charter’s video subscribers increased 4.3 percent y-o-y in Q1-16 to 4.332 million (67.8 percent of customer relationships) from 4.153 million (68.4 percent of customer relationships) and increased 0.2 percent q-o-q from 4.322 million (68.8 percent of customer relationships).

    Customer relationships in the current quarter increased 5.2 percent y-o-y to 6.388 million from 6.070 million and increased 1.7 percent q-o-q from 6.284 million.

    Video revenue increased 3.6 percent y-o-y to $1,170 million (46.2 percent of total or consolidated revenue) from $1,129 million (47.8 percent of total revenue) and increased 0.3 percent from $1,167 million (46.5 percent of total revenue) in Q4-15.

    Consolidated or total revenue in Q1-16 increased 7.1 percent y-o-y to $2,530 million from $2,352 million and increased 0.7 percent q-o-q from $2,512 million.

    Average Revenue per User (ARPU) and multi-play numbers

    ARPU has been increasing as more and more customers move from single to double play and triple play and from double play to triple play. Please refer to Figures B1 and B2 below.

    Note 2:
    ARPU in the case of Charter has been estimated based on the numbers submitted by it for its residential and business services ARPU. Charter’s ARPU numbers in the above chart are likely an approximation.

    Business Services Revenue (BSR)

    All the three players offer video, data (internet) and voice services to businesses. Unlike retail customers, the proportion of data and voice services are higher than video services. Business services revenue has been growing, as has its contribution to overall revenue. BSR’s contribution to total revenue is in double digits, in the case of TWC it was 14.3 percent in Q1-16. In the case of Comcast CCS, BSR contributed $1.3 billion to overall revenue in Q1-16. Please refer to Figures C1 and C2 below.

    Note 3:
    Business services revenue numbers may have many components including revenue from the three main service streams – video, data (high speed internet) and voice as well as revenue from advertising, wholesale transport, others, etc., depending upon the entity.

    Note:
    (a)Residential customer relationship numbers have been used in this report wherever the breakup has been mentioned in SEC filings by the concerned entity. In the case Comcast Cable Communications segment, the breakup of subscription numbers in terms of Residential and Business Services has not been indicated.
    (b) The results and the conclusions in this report may not necessarily reflect the true trends and nature of the cable communications industry in US.

  • Q1-2016: Dish Network reports higher revenue despite subscriber decline on higher ARPU

    Q1-2016: Dish Network reports higher revenue despite subscriber decline on higher ARPU

    BENGALURU:  US Pay-TV player Dish Network Corporation (DNC) reported 1.7 percent higher  year-on-year (YoY) total revenue for the quarter ended 31 March, 2016 (Q1-2016, current) at $3,787.24 million as compared to $3,724.23 million in the year ago quarter. Subscriber related revenue increased 2.2 per cent YoY to $3,775.48 million in the current quarter as compared to $3,693.53 million in Q1-2015. The company lost 139,000 Pay-TV subscribers. Its subscriber base in the current year declined 1 per cent to 13.874 million in the current year as compared to 14.013 million in Q1-2015.

    The company reported 2.6 per cent growth in average revenue per user (ARPU) in Q1-2016 to $87.94 from $85.73 in the corresponding year ago quarter. DNC says that increase in Pay-TV ARPU was primarily attributable to the DISH branded Pay-TV programming package price increases in February 2016 and 2015. These increases were partially offset by a shift in DISH branded Pay-TV programming package mix, an increase in Sling TV subscribers and a decrease in premium and pay-per-view revenue.  The company says that Sling TV subscribers generally have lower priced programming packages than DISH branded Pay-TV subscribers, and therefore, to the extent  that Sling TV subscribers increase, it has a negative impact on Pay-TV ARPU.

    DNC’s subscriber churn declined by a single basis point to 1.63 per cent in the current quarter as compared to 1.64 per cent in Q1-2015. DNC added 657,000 gross subscribers in Q1-2016 as compared to 723,000 subscribers in Q1-2015. The company says that its Pay-TV churn rate continued to be adversely affected by   increased competitive pressures, including aggressive marketing, bundled discount offers combining broadband, video and/or wireless services and other discounted promotional offers, as well as cord cutting.

    DNC reported lower subscriber acquisition costs in the current quarter at $648 per subscriber as compared to $667, or a drop of 2.9 per cent or $19 per subscriber. DNC says that this change was primarily attributable to a   decrease in hardware costs per activation. The decrease in hardware costs per activation was driven by a higher percentage of remanufactured receivers being activated on new DISH branded pay-TV subscriber accounts and by a reduction in manufacturing costs related to certain receiver systems

    DNC reported 628,000 broadband subscribers in Q1-2016 as compared to 591,000 subscribers in Q1-2015

    Net income attributable to DNC increased 10.8 per cent to $389.29 million in the current quarter as compared to $351.49 million in Q1-2015.

  • Q1-2016: Dish Network reports higher revenue despite subscriber decline on higher ARPU

    Q1-2016: Dish Network reports higher revenue despite subscriber decline on higher ARPU

    BENGALURU:  US Pay-TV player Dish Network Corporation (DNC) reported 1.7 percent higher  year-on-year (YoY) total revenue for the quarter ended 31 March, 2016 (Q1-2016, current) at $3,787.24 million as compared to $3,724.23 million in the year ago quarter. Subscriber related revenue increased 2.2 per cent YoY to $3,775.48 million in the current quarter as compared to $3,693.53 million in Q1-2015. The company lost 139,000 Pay-TV subscribers. Its subscriber base in the current year declined 1 per cent to 13.874 million in the current year as compared to 14.013 million in Q1-2015.

    The company reported 2.6 per cent growth in average revenue per user (ARPU) in Q1-2016 to $87.94 from $85.73 in the corresponding year ago quarter. DNC says that increase in Pay-TV ARPU was primarily attributable to the DISH branded Pay-TV programming package price increases in February 2016 and 2015. These increases were partially offset by a shift in DISH branded Pay-TV programming package mix, an increase in Sling TV subscribers and a decrease in premium and pay-per-view revenue.  The company says that Sling TV subscribers generally have lower priced programming packages than DISH branded Pay-TV subscribers, and therefore, to the extent  that Sling TV subscribers increase, it has a negative impact on Pay-TV ARPU.

    DNC’s subscriber churn declined by a single basis point to 1.63 per cent in the current quarter as compared to 1.64 per cent in Q1-2015. DNC added 657,000 gross subscribers in Q1-2016 as compared to 723,000 subscribers in Q1-2015. The company says that its Pay-TV churn rate continued to be adversely affected by   increased competitive pressures, including aggressive marketing, bundled discount offers combining broadband, video and/or wireless services and other discounted promotional offers, as well as cord cutting.

    DNC reported lower subscriber acquisition costs in the current quarter at $648 per subscriber as compared to $667, or a drop of 2.9 per cent or $19 per subscriber. DNC says that this change was primarily attributable to a   decrease in hardware costs per activation. The decrease in hardware costs per activation was driven by a higher percentage of remanufactured receivers being activated on new DISH branded pay-TV subscriber accounts and by a reduction in manufacturing costs related to certain receiver systems

    DNC reported 628,000 broadband subscribers in Q1-2016 as compared to 591,000 subscribers in Q1-2015

    Net income attributable to DNC increased 10.8 per cent to $389.29 million in the current quarter as compared to $351.49 million in Q1-2015.

  • TS Panesar: We see ARPU growing by at least 30 per cent.

    TS Panesar: We see ARPU growing by at least 30 per cent.

    With an aim to redefine, transform business dynamics and further strengthen the role of the local cable operator (LCO) in the distribution chain, Hathway has launched a special initiative – Hathway Connect. Launched in Bangalore on 28 January, Hathway Connect is designed to make the lives of LCOs easy and convenient by providing technology and support through a dedicated online portal, which will have detailed features that will allow the LCO to run his business efficiently and effectively, in turn, offering better quality and high standard customer experience. In a tete-a-tete  Hathway Cable and Datacom Limited president-video business  T S Panesar speaks on the launch of its new portal  for LCOs ‘Hathway Connect’ and how it will shape the business in the coming days:

    Q:   What’s the idea behind Hathway Connect?

    TSP:  Digital technology is driving our lives, the whole world is moving towards technology enabled delivery and consumption. The cable TV industry in India is also moving towards complete digitization. Keeping in mind the changed environment, it is important for us to ensure that our entire cable TV distribution chain is technologically oriented and upgraded to keep with the current trends. We want our LCO partners to be empowered and be strengthened with technology to grow further and keep pace with the demands of the consumers.  Overall, the objective is to offer a value proposition to the customers and give them a best-in-class experience.

    Q:  How do you think it’s different and how will it impact the LCOs?

    TSP:  The entire distribution chain in cable still works heavily on a B2B model with almost 90 per cent of the business taking place through the local cable operator. Until now, there has been no real initiative to strengthen the LCOs’ business, provide them with tools to bring a change in operations and improve customer service. Hathway Connect is a breakthrough approach where we are building technology through a dedicated portal to give the LCO a window to compete with the consumer driven DTH business. It’s time that we recognize the role of the LCO in the cable value chain, the country’s geography is vast and it’s through the LCO, that customers get to watch the best entertainment and information on TV. We cannot deny this reality and hence, as a responsible market leader, we have taken the mantle of upgrading and enhancing the LCO as an entity and providing him full access to control his business through technology. We are confident that it will have a positive impact on LCOs and customers as well as prove to be a game changer in the cable industry.

    Q:   What are the key aspects of the Hathway Connect initiative?

    TSP:   More than just a portal, Hathway Connect is a transformational initiativeand a detailed foray into empowering our LCO partners and the business overall through technology. With this dedicated portal, the LCO will have a host of powerful features that will make his life easy and convenient. Some of the key aspects that the portal offers to the LCO are online activation of new customers (E-CAF), package management, account balance management including integration with Bill desk, customer prepaid option, sending customized notifications to subscribers, specialized LCO helpdesk, Self-care through mobile APP amongst many others, which will help them to upgrade operations, create efficient and seamless processes, aid in effective monitoring, improve customer service and build a more robust business down-the-line. Sitting in his office, the LCO can now control his operations with just a click, manage his entire customer base with utmost ease, thus, reducing operational costs. The E-KYC is technology mandate of TRAI and Hathway is the first MSO to comply and launch it to digitally store consumer data. Further, the LCO has the access to handle his customers with all possible data points, tools and incentives and communication which will enhance the standard of services to customers.

    Q:  How do you envision the LCO in the digital regime?

    TSP:  Since the advent of cable TV in India, the LCO has been the driving force in building this industry brick by brick over the past decade and a half. LCOs connect the length and breadth of the country in a way that even DTH cannot match. The LCOs interaction with consumers on a one-to-one level and the personal experience he offers goes a long way back which makes him the heart of our business. Despite several questions raised on the existence of the LCO post digitization regime and his role diminishing forward, he continues to be that vital cog for MSOs in covering the wide geography of the country and would be even more critical in DAS 3 and 4 implementation, which would cover the interiors and heartland of India. The LCO will continue to exist and grow and our endeavour is to support and strengthen them with technology.

    Q:   How are you marketing this new initiative to the LCO fraternity?

    TSP:  We are promoting ‘Hathway Connect’ in a big way across our LCO partners. A dedicated portal has been developed and aesthetically designed in sync with our corporate brand look with enhanced features available for usage. To orient the LCOs, we are doing orientation sessions and welcome initiatives to introduce the programme to them in the most effective manner. In addition, training sessions on the portal and various features are being conducted on one-on-one level. We launched Hathway Connect in Bangalore on 28 January 2016 amidst a gathering of top LCOs and the portal was made Live on 1 February. Going forward, we are planning to roll-out Hathway Connect in the western region on 1 April followed by rest of the regions to make a Pan-India impact.

    Q:   Do you think the LCO is ready for this change?

    TSP:  There is no option but to embrace technology and adopt it in the best possible manner. The environment around us is changing rapidly and becoming competitive. Cable has been in existence since the last decade and half and has pioneered this industry. Today, DTH poses a challenge built mainly on cutting-edge technology and superior customer service, however, cable with its vast geographical strength and connect with the last mile has a big advantage which is still not explore to the fullest. The LCO has to realise his strength and we as pioneers in the business have taken this step to change their mind set, approach and give them the solution to become more competitive.

    Let’s not forget, consumer demands are increasing, they are more informed and smart and technology and quality has to be top notch. If we need to be competitive and grow, change is required. We, at Hathway, have transformed our business significantly over the past couple of years which has taken us ahead of competition. It’s time for our LCO partners to upgrade and change to strengthen themselves.

    Q:  How do you see Cable growth in the coming year and how much of a role will ‘Hathway Connect’ play in this?

    TSP:  As I mentioned earlier, today as one of the leading MSO and broadband company, we reach over 1.2 crore cable subscribers with a digital base of over 96 lakh and 30 lakh broadband homes passed. Our business has evolved manifold and the kind of steps that we have taken in the last one year has clearly taken us notches ahead of competition, be it initiatives for implementing DAS, packaging foray and now Hathway Connect. Cable TV has the potential to grow profitably, provided the industry upgrades with technology to make processes and operations easy and convenient. We have always taken risks and introduced new steps to grow the revenue pie, Hathway Connect is also a big step in that direction.

    Today, the LCO is our biggest asset and if we can transform them, there is a robust business ahead of us and we see ARPU growing by at least 30 per cent.

  • TS Panesar: We see ARPU growing by at least 30 per cent.

    TS Panesar: We see ARPU growing by at least 30 per cent.

    With an aim to redefine, transform business dynamics and further strengthen the role of the local cable operator (LCO) in the distribution chain, Hathway has launched a special initiative – Hathway Connect. Launched in Bangalore on 28 January, Hathway Connect is designed to make the lives of LCOs easy and convenient by providing technology and support through a dedicated online portal, which will have detailed features that will allow the LCO to run his business efficiently and effectively, in turn, offering better quality and high standard customer experience. In a tete-a-tete  Hathway Cable and Datacom Limited president-video business  T S Panesar speaks on the launch of its new portal  for LCOs ‘Hathway Connect’ and how it will shape the business in the coming days:

    Q:   What’s the idea behind Hathway Connect?

    TSP:  Digital technology is driving our lives, the whole world is moving towards technology enabled delivery and consumption. The cable TV industry in India is also moving towards complete digitization. Keeping in mind the changed environment, it is important for us to ensure that our entire cable TV distribution chain is technologically oriented and upgraded to keep with the current trends. We want our LCO partners to be empowered and be strengthened with technology to grow further and keep pace with the demands of the consumers.  Overall, the objective is to offer a value proposition to the customers and give them a best-in-class experience.

    Q:  How do you think it’s different and how will it impact the LCOs?

    TSP:  The entire distribution chain in cable still works heavily on a B2B model with almost 90 per cent of the business taking place through the local cable operator. Until now, there has been no real initiative to strengthen the LCOs’ business, provide them with tools to bring a change in operations and improve customer service. Hathway Connect is a breakthrough approach where we are building technology through a dedicated portal to give the LCO a window to compete with the consumer driven DTH business. It’s time that we recognize the role of the LCO in the cable value chain, the country’s geography is vast and it’s through the LCO, that customers get to watch the best entertainment and information on TV. We cannot deny this reality and hence, as a responsible market leader, we have taken the mantle of upgrading and enhancing the LCO as an entity and providing him full access to control his business through technology. We are confident that it will have a positive impact on LCOs and customers as well as prove to be a game changer in the cable industry.

    Q:   What are the key aspects of the Hathway Connect initiative?

    TSP:   More than just a portal, Hathway Connect is a transformational initiativeand a detailed foray into empowering our LCO partners and the business overall through technology. With this dedicated portal, the LCO will have a host of powerful features that will make his life easy and convenient. Some of the key aspects that the portal offers to the LCO are online activation of new customers (E-CAF), package management, account balance management including integration with Bill desk, customer prepaid option, sending customized notifications to subscribers, specialized LCO helpdesk, Self-care through mobile APP amongst many others, which will help them to upgrade operations, create efficient and seamless processes, aid in effective monitoring, improve customer service and build a more robust business down-the-line. Sitting in his office, the LCO can now control his operations with just a click, manage his entire customer base with utmost ease, thus, reducing operational costs. The E-KYC is technology mandate of TRAI and Hathway is the first MSO to comply and launch it to digitally store consumer data. Further, the LCO has the access to handle his customers with all possible data points, tools and incentives and communication which will enhance the standard of services to customers.

    Q:  How do you envision the LCO in the digital regime?

    TSP:  Since the advent of cable TV in India, the LCO has been the driving force in building this industry brick by brick over the past decade and a half. LCOs connect the length and breadth of the country in a way that even DTH cannot match. The LCOs interaction with consumers on a one-to-one level and the personal experience he offers goes a long way back which makes him the heart of our business. Despite several questions raised on the existence of the LCO post digitization regime and his role diminishing forward, he continues to be that vital cog for MSOs in covering the wide geography of the country and would be even more critical in DAS 3 and 4 implementation, which would cover the interiors and heartland of India. The LCO will continue to exist and grow and our endeavour is to support and strengthen them with technology.

    Q:   How are you marketing this new initiative to the LCO fraternity?

    TSP:  We are promoting ‘Hathway Connect’ in a big way across our LCO partners. A dedicated portal has been developed and aesthetically designed in sync with our corporate brand look with enhanced features available for usage. To orient the LCOs, we are doing orientation sessions and welcome initiatives to introduce the programme to them in the most effective manner. In addition, training sessions on the portal and various features are being conducted on one-on-one level. We launched Hathway Connect in Bangalore on 28 January 2016 amidst a gathering of top LCOs and the portal was made Live on 1 February. Going forward, we are planning to roll-out Hathway Connect in the western region on 1 April followed by rest of the regions to make a Pan-India impact.

    Q:   Do you think the LCO is ready for this change?

    TSP:  There is no option but to embrace technology and adopt it in the best possible manner. The environment around us is changing rapidly and becoming competitive. Cable has been in existence since the last decade and half and has pioneered this industry. Today, DTH poses a challenge built mainly on cutting-edge technology and superior customer service, however, cable with its vast geographical strength and connect with the last mile has a big advantage which is still not explore to the fullest. The LCO has to realise his strength and we as pioneers in the business have taken this step to change their mind set, approach and give them the solution to become more competitive.

    Let’s not forget, consumer demands are increasing, they are more informed and smart and technology and quality has to be top notch. If we need to be competitive and grow, change is required. We, at Hathway, have transformed our business significantly over the past couple of years which has taken us ahead of competition. It’s time for our LCO partners to upgrade and change to strengthen themselves.

    Q:  How do you see Cable growth in the coming year and how much of a role will ‘Hathway Connect’ play in this?

    TSP:  As I mentioned earlier, today as one of the leading MSO and broadband company, we reach over 1.2 crore cable subscribers with a digital base of over 96 lakh and 30 lakh broadband homes passed. Our business has evolved manifold and the kind of steps that we have taken in the last one year has clearly taken us notches ahead of competition, be it initiatives for implementing DAS, packaging foray and now Hathway Connect. Cable TV has the potential to grow profitably, provided the industry upgrades with technology to make processes and operations easy and convenient. We have always taken risks and introduced new steps to grow the revenue pie, Hathway Connect is also a big step in that direction.

    Today, the LCO is our biggest asset and if we can transform them, there is a robust business ahead of us and we see ARPU growing by at least 30 per cent.

  • Q3-2016: Videocon d2h YoY revenue up 22% on subscriber additions, higher ARPU

    Q3-2016: Videocon d2h YoY revenue up 22% on subscriber additions, higher ARPU

    BENGALURU: Videocon d2h Limited reported 14.8 per cent YoY increase in net subscriber additions and 8.2 per cent YoY growth in ARPU for the quarter ended 31 December, 2015 (Q3-2016, current quarter). The company’s revenue from operations (TIO) increased 21.6 per cent YoY to Rs 731.49 crore in Q3-2016 as compared to Rs 601.53 crore. Subscriber addition brings in higher activation revenue.

     

    The company achieved strong subscription and activation YoY revenue growth of 26 per cent at Rs 665 crore as compared to Rs 527.9 crore in the corresponding year ago quarter.

     

    Videocon d2h added 6.7 lakh gross subscribers and 4.3 lakh net subscribers during the quarter. Gross subscribers totalled 149.5 lakh and net subscribers totalled 112.7 lakh as of 31 December, 2015. The company says that monthly churn came in at 0.73 per cent for the quarter and 0.80 per cent for the nine months ending 31 December, 2015, which was marginally ahead of the company guidance.

     

    Note: 100,00,000 = 100 lakh = 10 million = 1 crore.

     

    Average revenue per user (ARPU) in Q3-2016 increased 8.2 per cent to Rs 211 as compared to Rs 195 in Q3-2015 and increased 2.9 per cent as compared to Rs 205 in Q2-2016.

     

    Videocon d2h reported 42.2 per cent YoY growth in adjusted EBITDA at Rs 201 crore for Q3- 2016 compared to Rs 141 crore in the corresponding year ago quarter. Net loss for the quarter declined to Rs 22.05 crore as compared to the net loss of Rs 79.8 crore in Q3-2015.

     

    Videocon d2h executive chairman Saurabh Dhoot said, “I am delighted the company reported EBITDA growth of over 42 per cent in the quarter compared to last year. This is a result of strong subscriber and ARPU growth and our continued focus on margin improvement, in line with our expectations. We believe we are amongst the fastest growing media companies in the world delivering exceptional performance quarter after quarter. During the quarter, we continued to strengthen our content offering and added new channels on our platform. We recently added two transponders ahead of schedule. This further strengthens our content offering, which is one of our key competitive advantages. With this additional bandwidth we will continue to add more regional and HD channels to our platform in times to come.”

     

    Speaking on the Phase III digitisation implementation, Videocon d2h CEO Anil Khera said, “Phase III digitisation has begun. The Ministry of Information & Broadcasting maintained their deadline and instructed broadcasters to switch off analogue signals in Phase III digitisation areas. In the first few days of January 2016, we saw strong pick up in subscriber additions in cities that come under Phase III digitisation. Recently, a few state high courts issued a stay order on implementation of Phase III digitisation for one – three months. This was in line with our expectations of the digitisation being a staggered process.”

     

    “We estimate around 50 million television homes come under Phase III digitisation, of which 24-25 million television homes are already on the digital platform. Thus, the target market under Phase III digitisation is the remaining 25-26 million television homes that are currently on analog cable,” he added.

  • Q3-2016: Videocon d2h YoY revenue up 22% on subscriber additions, higher ARPU

    Q3-2016: Videocon d2h YoY revenue up 22% on subscriber additions, higher ARPU

    BENGALURU: Videocon d2h Limited reported 14.8 per cent YoY increase in net subscriber additions and 8.2 per cent YoY growth in ARPU for the quarter ended 31 December, 2015 (Q3-2016, current quarter). The company’s revenue from operations (TIO) increased 21.6 per cent YoY to Rs 731.49 crore in Q3-2016 as compared to Rs 601.53 crore. Subscriber addition brings in higher activation revenue.

     

    The company achieved strong subscription and activation YoY revenue growth of 26 per cent at Rs 665 crore as compared to Rs 527.9 crore in the corresponding year ago quarter.

     

    Videocon d2h added 6.7 lakh gross subscribers and 4.3 lakh net subscribers during the quarter. Gross subscribers totalled 149.5 lakh and net subscribers totalled 112.7 lakh as of 31 December, 2015. The company says that monthly churn came in at 0.73 per cent for the quarter and 0.80 per cent for the nine months ending 31 December, 2015, which was marginally ahead of the company guidance.

     

    Note: 100,00,000 = 100 lakh = 10 million = 1 crore.

     

    Average revenue per user (ARPU) in Q3-2016 increased 8.2 per cent to Rs 211 as compared to Rs 195 in Q3-2015 and increased 2.9 per cent as compared to Rs 205 in Q2-2016.

     

    Videocon d2h reported 42.2 per cent YoY growth in adjusted EBITDA at Rs 201 crore for Q3- 2016 compared to Rs 141 crore in the corresponding year ago quarter. Net loss for the quarter declined to Rs 22.05 crore as compared to the net loss of Rs 79.8 crore in Q3-2015.

     

    Videocon d2h executive chairman Saurabh Dhoot said, “I am delighted the company reported EBITDA growth of over 42 per cent in the quarter compared to last year. This is a result of strong subscriber and ARPU growth and our continued focus on margin improvement, in line with our expectations. We believe we are amongst the fastest growing media companies in the world delivering exceptional performance quarter after quarter. During the quarter, we continued to strengthen our content offering and added new channels on our platform. We recently added two transponders ahead of schedule. This further strengthens our content offering, which is one of our key competitive advantages. With this additional bandwidth we will continue to add more regional and HD channels to our platform in times to come.”

     

    Speaking on the Phase III digitisation implementation, Videocon d2h CEO Anil Khera said, “Phase III digitisation has begun. The Ministry of Information & Broadcasting maintained their deadline and instructed broadcasters to switch off analogue signals in Phase III digitisation areas. In the first few days of January 2016, we saw strong pick up in subscriber additions in cities that come under Phase III digitisation. Recently, a few state high courts issued a stay order on implementation of Phase III digitisation for one – three months. This was in line with our expectations of the digitisation being a staggered process.”

     

    “We estimate around 50 million television homes come under Phase III digitisation, of which 24-25 million television homes are already on the digital platform. Thus, the target market under Phase III digitisation is the remaining 25-26 million television homes that are currently on analog cable,” he added.

  • Go Digital, Go Local is flavour of Asia TV Forum 2015

    Go Digital, Go Local is flavour of Asia TV Forum 2015

    SINGAPORE: It seems the pre-market conference is looking to set the tone for the rest of the market as well. Everyone, who is either involved in the content creation or content aggregation end, is thinking digital and going local.

     

    Post the keynotes earlier in the day, the sessions that followed include: ‘The Future of TV and Visual Entertainment,’ ‘Native Players, Digital Strategies,’ ‘View from Over The Top’ and ‘Digital Content: Cashing in or Cashing out?’

     

    In the first one, UK-based Ovum’s practice leader Ed Barton took to stage and gave some valuable insights in terms of how the world’s leading broadcasters and pay-TV operators are rethinking their business models to adapt to the ever changing and evolving viewing habits of the consumers. And even more importantly how advertisers are now thinking outside the box to catch their next potential customer.

     

    “Pay-TV growth in developing regions will be driven by finer market segmentation. While digital will continue to grow and rely heavily on what millennials choose to consume, with creators having to strategise better and cater to those needs,” said Barton.

     

    According to Ovum’s study, India’s average revenue per user (ARPU) from Pay-TV subscribers would be around $7.24 by 2020, whereas that for APAC will be at $8.63. But, what was more interesting is the fact that according to the same study, China would be having a lower ARPU than the Indian sub-continent, which is somewhat hard to digest. “The growth for video on demand services and HD services will be directly proportional to the ARPUs drive they receive,” Barton added.

     

    Next up the panel discussing ‘Native Players, Digital Strategies’ saw Endemol Asia MD Fotini Parakakis, MNC Sky Vision – Indonesia, VP director Yudha Wibawa and BBC Worldwide – SEA, SVP & GM Monty Ghai giving their views on what they believe is the future of digital content from the broadcaster’s perspective.

     

    “Broadcasters and brands are more open than ever before to explore differentiated content offerings and break out of the old school, tried and tested formulas. It’s heartening to see independent content creators, who got their very own multi-channel networks (MCNs) now taking it a step ahead by working with broadcasters to create more engaging content,” said Parakakis.

     

    Sharing similar views BBC’s Ghai shared, “We are exploring short format shows as well, but our main focus will continue to remain long form premium content since that’s in our DNA. That being said, what I believe will work for SEA and rest of Asia is if digital content can be used to drive audiences to consume more content on linear as well, rather than leading to cannibalise its presence.”

     

    Indonesia is somewhat similar to how India is progressing in terms of its digitisation process, and people there too face similar hurdles like low broadband connectivity and penetration, along with infrastructure woes. But even in such a scenario MNC Sky Vision’s Wibawa sees a ray of hope. “Although only a few cities are in the position to look at heavy consumption of content on the mobile (given the low broadband penetration) it is still worth a shot and a fairly large population (read over 30 per cent) that is on the look out for such content,” Wibawa said.

     

    Similar discussions were held during the other two sessions as well, which clearly shows that digital is here to stay and if creators embrace the idea of ‘Going Local, but for the world’ then there’s nothing that can stand in the way of how Asia transforms from being influenced by western content, to influence western content instead.

  • Q3-2015: Dish Network net income up 34.2%; ARPU up 2.7%; subscriber base down

    Q3-2015: Dish Network net income up 34.2%; ARPU up 2.7%; subscriber base down

    BENGALURU: Dish Network Corporation reported revenue totalling $3.73 billion for the quarter ending 30 September, 2015 (current quarter, Q3-2015), compared to $3.68 billion for the corresponding period in 2014. Subscriber related revenue increased to $3.7 billion from $3.65 billion in the year-ago period.

     

    Net income attributable to Dish Network totalled $196 million for the current quarter, compared to net income of $146 million from the year-ago quarter. Diluted earnings per share for Q3-2015 were $0.42, compared with $0.31 during Q3-2014.

     

    For Q3-2015 and 9M-2015, Dish has included all of its Sling TV live, linear streaming over-the-top Internet-based television services in the company’s total Pay-TV metrics, including in the Pay-TV subscriber, Pay-TV ARPU and Pay-TV churn rate numbers set forth below. Sling TV subscribers are included net of disconnects.

     

    In the current quarter, Dish activated approximately 751,000 gross new Pay-TV subscribers, compared to approximately 691,000 gross new Pay-TV subscribers in Q3-2015. Net Pay-TV subscribers declined approximately 23,000 in Q3-2015, compared to a loss of approximately 12,000 in the third quarter of 2014.

     

    The company closed Q3-2015 with 13.909 million Pay-TV subscribers, compared to 14.041 million Pay-TV subscribers at the end Q3-2014. Pay-TV ARPU for the third quarter totalled $86.33, compared to the year-ago period’s Pay-TV ARPU of $84.39. Pay-TV subscriber churn rate was 1.86 per cent versus 1.67 per cent Q3-2014.

     

    Dish claims that its added approximately 13,000 net broadband subscribers in the current quarter, bringing its broadband subscriber base to approximately 608,000.