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Tag: AT&T

  • College Football Playoff semifinal brings in New Year cheer to ESPN

    College Football Playoff semifinal brings in New Year cheer to ESPN

    MUMBAI: While it has been just a few days since the year has reigned in, it has already brought in cheer to sportscaster ESPN. The sportscaster’s move to pay $7.3 billion over 12 years including a reported $610 million annual commitment this year has paid off if the TV ratings are taken into account. The two games of the inaugural College Football Playoff semifinals on ESPN on 1 January 2015, delivered the largest two audiences in cable television history claims the channel.

    The Rose Bowl Game presented by Northwestern Mutual at 5 pm. ET –  wherein Oregon defeated previously unbeaten Florida State 59-20, the largest margin of victory in the Rose Bowl Game since 1948 – averaged 28,164,000 viewers (P2+), based on a 14.8 rating, according to Nielsen. On the other hand, the Allstate Sugar Bowl at 9 pm ET – Ohio State 42-35 over top-seeded Alabama – averaged 28,271,000 viewers, based on a 15.2 rating.

    Speaking about the spurt in the TV ratings, ESPN executive vice president, programming and production John Wildhack said, “These record-setting numbers illustrate the enormous fan interest in college football and the wide-ranging appeal of the new college football playoff format,” He went on to add that the channel was excited to further build on the success when it showcases the first ever college football layoff national championship on 12 January.

    Both games generated an increase over the ESPN bowl games in the respective 1 January time slots a year ago: a 51 per cent increase in viewership for the Rose Bowl Game (vs. 18,636,000) and 150 per cent increase for the Sugar Bowl (vs. 11,304,000). The ratings rose 45 percent (from 10.2) and 130 percent (from 6.6), respectively.

     

    The average New Year’s Six game live on WatchESPN attracted 5,05,000 unique viewers, 26.2 million minutes viewed and an average minute audience of 118,000 – up by 229 percent, 214 percent and 198 percent, respectively, compared to the same dates last year, says the channel.

    On social media, four million tweets were sent about the New Year’s Six Bowl games across the two days comprising 70 per cent of all tweets about TV programming in those 48 hours. Additionally, despite the score of the matchup between Florida State and Oregon in the Rose Bowl, it was the most tweeted about game of the New Year’s Six with 2.6 million tweets and ranks as the most tweeted about football game (NFL or college) of the 2014-15 season.

    The New Year’s Day semifinal winners – Oregon and Ohio State (both 13-1) – will play in the inaugural championship presented by AT&T at 8 30 pm. on ESPN, WatchESPN and ESPN Radio. In addition, ESPN Deportes will provide exclusive Spanish-language coverage of the championship. ESPN Deportes Radio also will carry game, marking the first-ever national Spanish-language radio broadcast of a college football title game. As part of the deal to telecast the games, the sports caster will telecast seven games a year; four major bowl games, two semifinal bowl games and the national championship game.

     

  • AT&T-DirecTV deal gets clearance from Mexico, US still undecided

    AT&T-DirecTV deal gets clearance from Mexico, US still undecided

    NEW DELHI: The controversial acquisition of DirecTV by AT&T has received the necessary approval from Mexico’s Federal Telecommunications Institute (IFT).

     

    Earlier, AT&T received approval in Brazil and Trinidad and Tobago.  AT&T has also filed an informational notice with the Hawaii Commission.

     
    However, AT&T is yet to receive the necessary approvals from the Federation Communications Commission in the United States.

     

    AT&T has already said it will invest further in mobile internet, a condition set by the US. Following the merger, AT&T will expand its deployment of both wireline and fixed wireless internet to cover at least 15 million customer locations across 48 states – most of them in underserved rural areas.

     

    The merger review process was completed among regulators at the US state level in July. AT&T said its petitions with the Public Service Commissions in Louisiana and Arizona did not receive protests or interventions and the petitions were deemed approved in July.

     

  • American senators question AT&T deal to buy DirecTV

    American senators question AT&T deal to buy DirecTV

    NEW DELHI: Even as Brazil has been given the go-ahead to acquire DirectTV by American wireless carrier AT&T for $48.5 billion, the deal is facing regulatory issues with the US Federal Communications Commission (FCC). It is being asked to consider several key issues before giving the green signal.

     

     American senators Amy Klobuchar and Mike Lee, Senate Judiciary Committee’s Anti-trust subcommittee chairman and ranking member , have written to Attorney General Eric Holder and FCC chairman Tom Wheeler to consider the effect the deal could have on consumers’ access to broadband service, and worries over the loss of independent programming as the number of buyers for this programming shrinks.

     

    The two also talked about the impact on three regional sports networks. Klobuchar and Lee urged a probe into whether the deal would prompt DirecTV to increase the fee it charges other companies to broadcast its three regional sports networks. The networks, known as Root Sports Northwest, Pittsburgh and Rocky Mountain, carry a variety of professional and college sports across 18 states.

     

     Even when the deal was first announced in May this year, it had led to heated debate both in the media in the US as well as among shareholders, stock watchers and industry stakeholders.

     

     Some analysts asked why Apple, Verizon and Google never considered purchasing DirecTV at this exorbitant price.

     According to various reports in the media in the US, DirecTV shareholders were reportedly happy with the price and shareholder rights attorneys at Robbins Arroyo were investigating the proposed acquisition.

     

     DirecTV shareholders will receive $28.50 in cash and $66.50 in shares of AT&T stock for each share of common stock, for a total consideration of $95.

     Robbins Arroyo’s investigation focuses on whether the board of directors at DirecTV is undertaking a fair process to obtain maximum value and adequately compensate DirecTV shareholders, who were expecting more.

     

    The $95 merger consideration is significantly below the target price set by at least four analysts, including a target price of $100 set by analysts at Macquarie Group and Atlantic Equities. The company’s comparable adjusted earnings per share beat analyst estimates in three out of its last four quarters, said Robbins Arroyo.

     DirecTV shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information.
     
    AT&T has also been under attack from Fitch Ratings that has placed the ‘A’ Issuer Default Ratings (IDRs) and outstanding debt of AT&T and its subsidiaries on Rating Watch Negative. The company’s ‘F1 short-term IDR and commercial paper rating has also been placed on Rating Watch Negative.

     Fitch said AT&T’s acquisition of DirecTV will improve its financial flexibility owing to DirecTV’s strong free cash flows and the significant equity component in the transaction financing.

     

     DirecTV’s video assets are complementary to AT&T’s operations, but the longer term strategic benefits are less clear and depend on the post-merger company’s ability to capitalize on emerging trends in the industry, Fitch said.

     

     But AT&T’s planned acquisition of DirecTV offers benefits in the form of a nationwide footprint for AT&T as a Video Over the Top (OTT) and pay TV operator and ties in with the company’s already strong IPTV, broadband and wireless businesses, said Strategy Analytics.

     

    Meanwhile, Infonetics Research has reduced its 2017 pay-TV revenue forecast by 35 percent globally, from $401 billion to just under $260 billion. It said the overall video services ARPU and revenue growth will be constrained.

     

     “This is because of the result of increasing competition from OTT (over-the-top) players and the service providers themselves using broadband video as a lower-priced offering,” said Jeff Heynen, principal analyst for broadband access and pay TV at Infonetics Research.

     

     Brazil’s Agencia Nacional de Telecomunicacoes (ANATEL) as well as Trinidad and Tobago gave approval to the deal.

     

     AT&T has also filed an informational notice with the Hawaii Commission.

     

  • Brazil gives the green signal to AT&T to acquire DirecTV

    Brazil gives the green signal to AT&T to acquire DirecTV

    NEW DELHI: Brazil’s Agencia Nacional de Telecomunicacoes (ANATEL) and Trinidad & Tobago have given approval to American telecom service provider AT&T for the proposed $48.5 billion acquisition of DirecTV.

     

    Earlier, AT&T had received an anti-trust approval in Brazil. Regulatory review is now complete in both countries.

     

    In July, the merger review process was completed among regulators at the US state level.

    AT&T’s Petitions with the Public Service Commissions in Louisiana and Arizona did not receive protests or interventions and the Petitions were deemed approved in July.

     

    AT&T has also filed an informational notice with the Hawaii Commission.

     

    It has committed to expand and enhance its deployment of both wireline and fixed wireless high-speed internet to cover at least 15 million customer locations across 48 states – most of them in underserved rural areas.

     

    Meanwhile, DirecTV extended its exclusive $1.5 billion contract to sell the Sunday Ticket package of National Football League games.

     

    The deal removes a potential roadblock to AT&T’s proposed $48.5 billion purchase of the satellite TV provider. AT&T had the right to pull out of the deal if DirecTV was unable to renew its Sunday Ticket pact.

     

    DirecTV’s annual payments to the NFL would average $1.5 billion for eight years.

     

    Reuters reported that DirecTV sells the package of Sunday games to its subscribers for about $300 a year, a key marketing advantage over cable TV competitors. Roughly two million people receive the service, which allows them to watch games outside of their local markets. 

  • IBM Cloud to help MutualMind in expanding social media network

    IBM Cloud to help MutualMind in expanding social media network

    NEW DELHI: MutualMind, a startup that provides social media sentiment analysis, has leveraged IBM cloud to upgrade its infrastructure and double the computing power of its real-time, on-demand content analysis and visualisation application.

     

    MutualMind migrated to IBM after replacing Amazon Web Services and Rackspace.

     

    Through MutualMind, customers can monitor brand discussions on the social networks on which they have a presence, enabling them to gain valuable insights from social discussions.

     

    Major brands like Kraft, AT&T, Nestle and Walgreens use MutualMind to support various product development, market research and consumer care programs, the company said.

     

    IBM cloud powered by SoftLayer has allowed MutualMind to improve processing efficiency, performance and scalability while also meeting growing customer demand, said MutualMind CEO and co-founder Barbar Bhatti. “We now have the ability to successfully offer our products cost-efficiently and provide our customers the real-time support needed in today’s digitally social world.”

     

    By moving its application to SoftLayer, MutualMind is able to leverage the power of big data to help customers transform their operations and gain a competitive advantage.

     

    MutualMind’s platform can process between 30,000 to 80,000 different queries on these documents at any moment, and SoftLayer delivers the flexibility required to deliver accurate and continuous customer engagement in real time.

     

    Utilising SoftLayer’s bare metal infrastructure, MutualMind’s engineers can appropriately customise and configure the right kind of servers and apply these changes where needed – such as when a client needs extra support for a major new product launch or social media campaign, the company said.

  • Fox or Time Warner: Who will blink first – Time Warner’s attempt to get more money?

    Fox or Time Warner: Who will blink first – Time Warner’s attempt to get more money?

    BENGALURU: Both the companies have issued official statements about the offer and rejection. Twenty-first Century Fox (Fox) issued a short, cryptic  three sentence statement –“21st Century Fox can confirm that we made a formal proposal to Time Warner last month to combine the two companies. The Time Warner Board of Directors declined to pursue our proposal. We are not currently in any discussions with Time Warner.” Fox waited for the appropriate time and made the bid within a few days of Time Warner completing the spinoff of Time Inc., and hence made the target more affordable for Fox.

     

    Speculation continues across media circles globally with some industry pundits claiming that the rejection of the Fox offer was a coy attempt by the Time Warner brass to get more money for the company. Time Warner shares closed last week at above USD 86 per share, already above the estimated USD 85 per share offered by Fox. If Fox wants to build more clout with Pay TV providers it actually is left with little option except to raise its bid, considering the fact that AT&T has announced a USD 49 billion deal to buy DirecTV and the friendly Comcast-Time Warner Cable merger is awaiting approvals. Other suitors could also make a pitch for Time Warner, hence raising the ante further.

     

    As mentioned earlier, Time-Warner had rejected Rupert Murdoch’s 21st Century Fox offer allegedly worth about USD 76 billion cash and stock. 21st Century Fox had offered to buy Time Warner for USD 32.42 in cash and offered a ratio of 1.531 Fox class-A share for each Time Warner share.

     

    Time Warner had in a statement last week said that the company was confident that its board’s strategy continues to deliver stockholder value and was superior to any proposal Fox had to offer.

     

    Excerpts of the Time Warner release:

     

     In making its determination, the Time Warner Board considered, among other things, that: The execution of Time Warner’s strategic plan will continue to drive significant and sustainable value for Time Warner stockholders; The unique value of Time Warner’s industry-leading businesses including its portfolio of networks and its film studio and television production business is only going to increase; There is significant risk and uncertainty as to the valuation of Twenty-First Century Fox’s non-voting stock and Twenty-First Century Fox’s ability to govern and manage a combination of the size and scale of Twenty-First Century Fox and Time Warner; and there are considerable strategic, operational, and regulatory risks to executing a combination with Twenty-First Century Fox.

     

    Citigroup Global Markets Inc. is acting as financial advisor to Time Warner while Cravath, Swaine & Moore LLP is acting as legal advisor.

     

     In the meantime, the US Federal Communications Commission (FCC) has set a deadline of 25 August 2014 for those interested in filing comments or petitions to deny the friendly Comcast Corporation (Comcast)-Time Warner Cable Inc., merger. (Time Warner Cable was spun off from Time Warner in 2009). The deal would give Comcast 30 million U.S. homes; about 30 per cent of all the cable households and 40 per cent of the high-speed internet market. In a statement in February 2014, Comcast had said that the stock-for-stock transaction in which Comcast will acquire 100 per cent of Time Warner Cable’s 284.9 million shares outstanding for shares of Comcast amounting to approximately USD 45.2 billion in equity value. Each Time Warner Cable share will be exchanged for 2.875 shares of Comcast, equal to Time Warner Cable shareholders owning approximately 23 per cent of Comcast’s common stock, with a value to Time Warner Cable shareholders of approximately $158.82 per share based on the last closing price of Comcast shares. Comcast also plans to expand its buyback program by an additional USD10 billion.

  • AT&T to buy DirecTV for $48.5 billion

    AT&T to buy DirecTV for $48.5 billion

    NEW DELHI: The American telecom giant AT&T has decided to take over pay TV brand DirecTV for $48.5 billion, but will sell its 73 million publicly listed shares from America Movil in Latin America considering the strong presence DirecTV has in the video market there.

     

    Combined the company would have roughly 26 million video subscribers, most from the DirecTV side, and a broadband network covering 70 million customer locations. 

     

    “This is an unique opportunity that will redefine the video entertainment industry and create a company that is able to offer new bundles and deliver content to consumers across multiple screens – mobile devices, TVs, laptops, cars and even airplanes,” said AT&T’s chairman and CEO Randall Stephenson in a statement.

     

    Meanwhile, the regulator is examining the three-month old proposal by Comcast Corp for a $45 billion takeover of Time Warner.

     

    AT&T will not pay any fee to DirecTV if they do not get approval from the regulator.

    Following the deal, the telecom giant will expand high-speed broadband to 15 million customer locations, primarily in rural areas, in four years.

     

    AT&T will acquire DirecTV in a stock-and-cash transaction for $95 per share based on last Friday closing price. DirecTV shareholders will own around 14.5 to 15.8 per cent of AT&T shares. AT&T expects cost synergies to exceed $1.6 billion on an annual run rate basis by three years after closing.

     

    DirecTV has 20.3 million American subscribers, while AT&T serves 5.6 million video customers connected to its U-Verse network. But DirecTV’s subscriber growth has slowed in recent months as it does not have a landline network to deliver high-speed internet services to homes, unlike phone and cable TV companies.

     

    The deal will assist DirecTV to take on the combined entity between Comcast and Time Warner Cable. If combined, AT&T-DirecTV would serve roughly 26 million pay-TV customers. That would be less than the 30 million Comcast would have if regulators approve its purchase of Time Warner Cable.

     

    The transaction enables the combined company to offer consumer bundles that include video, high-speed broadband and mobile services using all of its sales channels — AT&T’s 2,300 retail stores and thousands of authorised dealers and agents of both companies, an AT&T spokesperson said.

     

    For customers who only want a broadband service and may choose to use video through an over-the-top (OTT) service like Netflix or Hulu, the combined company will offer stand-alone wireline broadband service at speeds of at least 6 Mbps (where feasible) in areas where AT&T offers wireline IP broadband service at guaranteed prices for three years.

     

    AT&T will continue to offer DirecTV service on a stand-alone basis at nationwide package prices for at least three years after closing.

     

    In 2015, AT&T will bid at least $9 billion provided there is sufficient spectrum available in the auction to provide AT&T a viable path to at least a 2×10 MHz nationwide spectrum footprint. 

     

  • AT&T to launch video service with Chernin Group

    AT&T to launch video service with Chernin Group

    NEW DELHI: American telecom service provider AT&T and The Chernin Group are acquiring, launching and investing in video services.

     

    It is understood that this will be more than a $500 million venture. The massive investment is seen as a response to the ongoing merger talks between Comcast and Time Warner Cable (TWC) and fiber-led Internet ambition of Google.

     

    AT&T announced its video investment plan hours after Comcast shared its Q1 2014 revenue that rose 13.7 per cent to $17.4 billion. Comcast Q1 income grew 16.3 per cent to $3.56 billion. Out of this, Cable Communications revenue increased 5.3 per cent.

     

    AT&T, which has invested more than $119 billion in the United States over the last six years, said it wants to tap the online video and OTT video market.

     

    Comcast, which is currently negotiating a $45 billion merger with TWC, said it added 124,000 cable customers in Q1 2014 and reached 26.8 million. It added 24,000 video customers in the first quarter of 2014. The company also added 383,000 high-speed internet customers. Internet revenue growth of 9 per cent is the strongest growth rate in two years.

     

    AT&T chief strategy officer John Stankey said: “Combining our expertise in network infrastructure, mobile, broadband and video with The Chernin Group’s management and expertise in content, distribution, and monetization models in online video creates the opportunity for us to develop a compelling offering in the OTT space.”

     

    One-day before the video announcement, AT&T said it would expand its high speed internet network to an additional 21 cities in the American internet network. It also suggested that the online video venture will make AT&T a leader in the American broadcasting industry. It seems internet search engine Google may not be the big rival for AT&T, but Comcast and others.

     

    The Chernin Group, which invests in media businesses, brings assets and expertise to the venture, including contribution of its majority stake in Crunchyroll, a subscription video on demand service.

     

    This alliance positions AT&T and The Chernin Group to take advantage of the rapid growth of online video and OTT video services. The strategic goal of this initiative will be to invest in advertising and subscription VOD channels as well as streaming services.

     

    AT&T has over 110 million wireless subscribers and more than 16 million total broadband subscribers. Video makes difference to better customer experience. At present, Google and AT&T are competing in high speed internet network roll outs. AT&T will benefit from video as it will compensate possible revenue loss from voice services. 

  • AT&T and ‘American Idol’ part ways

    AT&T and ‘American Idol’ part ways

    MUMBAI: Judges have come and gone, but what had remained consistent about Fox’s American Idol apart from host Ryan Seacrest, are the sponsors.

     

    However, in a new development AT&T which has been the sponsor for the reality show for its last 12 editions has finally decided to part ways. The American telecom giant has earlier been quoted as saying that the show is a powerful platform that allows it to connect with its customers directly.

     

    However, it seems the show’s declining ratings has adversely affected the relationship between the two. As per the Nielsen data, reported in American dailies, the average audience size for Idol has dropped by 9.9 million viewers over the past three seasons, from 23.1 million in 2011 to 13.2 million last year.

     

    The other sponsors – Coke and Ford – are still associated with the show, the 13th edition of which went on air on 15 January.

  • Three out of 10 rural Americans do not have access to high-speed internet: FCC

    Three out of 10 rural Americans do not have access to high-speed internet: FCC

    NEW DELHI: Cable is down, DBS and telcoTV is up, and more than 80 per cent of American broadcast TV signals are now high-definition, says the latest Federal Communications Commission’s annual Video Competition Report. 

    “As of the end of 2011, 1,501-82.2 per cent-of full-power stations were broadcasting in HD, up from 1,036 stations in 2010,” the report said.

    Household adoption of HDTV sets also rose. As of 2012, 85.3 million (74.4 per cent) of US TV households had sets capable of displaying HD signals, up from 75.5 million (65.1 per cent) in 2011. DVR adoption rose as well, from 46.3 million households (40.4 per cent), to 50.3 million households (43.8 per cent).

    However, Acting FCC chairwoman Mignon Clyburn said she was concerned because “Not all of our citizens are realising the promise of these competitive benefits. Nearly three out of 10 rural Americans do not have access to high-speed internet, sufficient to receive online video distributors’ services, and I sincerely hope that these consumers are not forgotten.”

    Reliance on over-the-air TV has remained steady at around 11.1 million households, according to the report. This figure is in agreement with one proffered by Nielsen in January, but far short of another published last month in GfK’s Home Technology Monitor, an annual survey that found 19.3 per cent of U.S. TV households rely exclusively on over-the-air reception. 

    Broadcast TV station revenue followed the political cycle-$22.22 billion in 2010; $21.31 billion in 2011; and a projected $24.7 billion for 2012, a rise in part attributed to retransmission consent fees. However, TV stations were said to make about 88 per cent of their revenues through advertising, “A slight decline from the last report.”

    Prime-time ad rates for a 30-second spot in the top 100 TV markets, based on composite figures, rose from $26.76 CPM (cost per thousand households) in 2010, to $28 in 2011, and $32.08 in 2012.

    Local news is said to account for 35 to 40 per cent of advertising revenues. In 2011, the average TV station aired 5.5 hours of local news per weekday, up from 5.3 hours in 2010.

    Network compensation, once paid to TV station affiliates by the networks, has “All but disappeared,” the report said. Network compensation dipped from $48.2 million in 2010 to $25.1 million in 2011, according to SNL Kagan numbers cited in the report. The 2012 figure is projected at $287,000. Networks have reversed the compensation model by taking a percentage of retransmission fees from stations.

    Retrans fees comprised 8.1 per cent of TV station revenues in 2011, or $1.76 billion; and 9.4 per cent or $2.36 billion in 2012.

    Ancillary DTV revenues were nearly negligible. Broadcasters can use a portion of their spectrum for revenue-generating activities such as subscription video or data transfer, but they must pay the FCC five per cent of those revenues. In 2012, 81 licensees made total ancillary DTV revenue of $499,970. The peak year was 2010, when 99 licensees brought in more than $7.1 million in ancillary revenues.

    Clyburn said she was “Encouraged by the pro-consumer trends it reveals,” adding “Options for accessing video programming are swelling,” she said. “Nearly all consumers now have a choice among three. MVPDs, and today, more than one-third of all households can choose from four or more providers. I note that broadcast TV remains one of the most affordable sources of entertainment and news,” she continued. “As the report shows, 11 million American [households] still rely on free, over-the-air broadcast signals as their exclusive source for TV viewing.”

    While the commission has been bullish on reducing the spectrum available for TV broadcasting, it did give stations props for public service: “Since the last report, full-power television stations have continued to take advantage of digital broadcasting technology to offer improved service to the public. In addition to high-definition content, broadcasters are using multicasting to bring more programming to consumers by expanding the availability of established networks and adding new startup digital networks-including networks targeting minorities and programming targeting niche audiences-and Spanish language offerings.”

    Multicast diginets include Bounce TV, which now has 154 affiliates, This TV, with 133, and Retro TV with 44 affiliates. Established networks have also benefited from multicasting. The CW is on 115 multicast channels; MyNetworkTV, on 92.

    Total day audience share for the network affiliates held steady between 2011 and 2012 at 28, per cent with the total broadcast share at 33 per cent, compared to 52 per cent for ad-supported cable networks. In prime time, network affiliates held 33 per cent of the audience; all broadcast, 38 per cent; and ad-supported cable, 51 per cent.

    The availability of mobile DTV grew between reports, from 60 stations in 2010 to 105 stations at the end of 2011. 

    The National Association of Broadcasters said the total now stands at 130 stations in 30 states delivering 150 channels.

    Despite ongoing reports of cord-cutting, the FCC found that pay TV subscriptions rose slightly between the end of 2010 to June 2012, from 100.8 million to 101 million households. Cable’s share fell however, from 59.3 per cent to 55.7 per cent as of June 2012. Direct broadcast satellite TV providers picked up 600,000 subscribers in the time period to end June 2012 with 34 million, or 33.6 per cent of all pay U.S. pay TV subscribers.

    TelcoTV grew by 1.7 million subscribers during the period, to 8.6 million, according to the report. However, it noted that the total comprised “AT&T’s Uverse and Verizon’s FiOS services,” but not other small telcoTV providers around the country.

    Technologically, cable systems are catching up with telcoTV, which delivers only the channels being watched at a given time versus the entire package a la traditional cable. At the end of last year, more than half of the footprint of the top eight cable providers was all-digital, with 43 per cent of that portion using switched digital video delivering only those channels watched.

    The average price of a basic cable subscription increased by 6.2 per cent to $20.55 between 2011 and 2012, with expanded basic up 4.8 per cent to $61.63. The basic price-per-channel was up 1.5 per cent to 63 cents, while expanded price-per-channel fell one-tenth of a penny in the 50 cent range.

    The Video Competition Report divides TV distributors in to three types-broadcast, multichannel video programming distributors (cable, satellite and telco pay TV), and online video providers, or OVD. The commission cited SNL Kagan numbers indicating that the number of internet-connected TV households grew from around 26.6 million (22.8 per cent) at the end of 2011, to an estimated 41.6 million (35.4 per cent) by the end of 2012.

    The commission said OVD accounted for a growing portion of internet traffic during peak hours, and noted that most major cable operators imposed bandwidth caps or metered pricing during the first half of 2012. Phone companies are said to be following suit.