Tag: Comcast

Column-Policy Cross-Connections

Point 1: With over 1.2 billion population, India is a dream market for any product or service. In short, a land of opportunities.

Point 2: Despite economic liberalisation started in early 1990s and followed through by successive governments, including the present one in New Delhi, India is still termed a challenging market.

Just like any other sector, India’s INR 1,157 billion media and entertainment (M&E) industry too gets affected by the two aforementioned points.

That the M&E industry holds immense potential can be easily seen in various crystal-ball gazing done.

Indian Government Economic Survey 2016, an annual report card for Indian economy released every February, states the M&E recorded “unprecedented growth” over the last two decades making it one of the fastest growing industries in India. It is projected to grow at a CAGR of 13.9 percent to reach INR 1964 billion by 2019, the Survey states, adding digital advertising and gaming are projected to drive the growth of this sector in the coming years.

The FICCI-KPMG annual report on Indian M&E sector, released in March, also reiterates the optimism. According to the report, the sector is expected to be worth INR 2,260 billion by 2020 and the advertising sector grew by 14.7 percent from INR 414 billion in 2014 to INR 475 billion in 2015.

But then what’s holding back big bang investments not only from Indian investors but also foreign ones? Especially when China, the only other market in Asia that outstrips India in terms of size and opportunities, is mostly closed for foreign investors with stringent rules relating to M&E sectors.

My theory is that despite successive governments from 1990 (it was in 1991 that economic liberalisation was set in motion in India and Indians also got exposed to satellite TV in few years from then) following up on that, full benefits have failed to accrue to the country. Reason? Various liberalisation processes and easing norms of doing business get enmeshed with other policy decisions— some taken in isolation — thereby continuing to make India a challenging market.

Take, for example, the much talked about government step in June in liberalising FDI investment norms for various sectors, including media, defence, pharmaceuticals and retail.

FDI policy on broadcasting carriage services as of June 2016

Sector/Activity

New Cap and Route

5.2.7.1.1

(1)Teleports(setting up of up-linking Hubs/Teleports);

(2)Direct to Home (DTH);

(3)Cable Networks (Multi System operators (MSOs) operating at National or State or District level and undertaking upgradation of networks towards digitalization and addressability);

(4)Mobile TV;

(5)Headend-in-the Sky Broadcasting Service(HITS)

100%

Automatic

5.2.7.1.2 Cable Networks (Other MSOs not undertaking upgradation of networks towards digitalization and addressability and Local Cable Operators (LCOs))

Infusion of fresh foreign investment, beyond 49% in a company not seeking license/permission from sectoral Ministry, resulting in change in the ownership pattern or transfer of stake by existing investor to new foreign investor, will require FIPB approval

(Source: Commerce Ministry)

The government in June said that FDI in all broadcast carriage services like cable, MSO, DTH, mobile TV, HITS have been upped to 100 percent and brought under automatic route, which means bureaucratic and lengthy permission processes have been lessened.

Small caveat in automatic route investment norms notwithstanding, Indian companies and foreign investors should have been popping the champagne bottles. But industry reactions were sober to the extent of being subdued.

General analysis of the aforementioned decision, in short, was: the government took a big step, but not a giant one. Why?

According to government data, total FDI flow into India since April 2000 to December 2015 stood at US$ 408.68 billion. But the media sector’s share of FDI inflows from 2000-2015 was pegged at $4.48 billion.

Considering the burgeoning media industry and newer technologies coming in, this sector’s share of FDI during this 15-year period should have been higher.

So, why are foreign investors hesitant in investing in India, especially when PM Modi’s dream of Digital India can dovetail into building digital infrastructure capable of delivering many media services?

The federal government may be trying its best to ease norms of doing business in India and live up to its claim of ‘India being a fav destination for foreign investors’, other proposed and existing policy decisions not only send out confused signals, but, actually, create more impediments.

Take, for example, broadcast carriage regulator TRAI’s two discussion papers on infrastructure sharing in TV broadcasting distribution and set-top-box interoperability .
TRAI’s contentions for floating these discussion subjects are to explore avenues to reduce expenditure of companies providing these services by doing away with duplication (in the first case) and examine whether interoperable STBs can largely benefit the consumers.

Critics of both these TRAI discussion subjects opine that if followed through and converted into regulations, both measures could add another layer of restrictions on the industry.

Hong Kong-based Asian media industry organisation CASBAA, which also has Indian members, doesn’t mince words when it said in its submission on STB interoperability that the TRAI paper was based on a “number of untested, unproven presuppositions concerning the practice of technical interoperability”.

Countering TRAI assertions, CASBAA said, “Regulator-imposed technical interoperability requirements will impose very large burdens on Indian consumers and industry players and risk stifling innovation in development of new features of interest to consumers.”

If a holistic view is taken of both the TRAI consultations, surprisingly aimed at bringing down media services to a common denominator having little USPs, it’s no wonder the likes of Comcast and Liberty Media or closer home the Hong Kong-headquartered PCCW, for instance, have not been enthused much to invest in Indian broadcast carriage segment despite FDI norms liberalisation and a whopping over 100 million TV homes still on the plate.

It’s not only TRAI, but also the general layout of the taxation and financial environment, apart from other cross-media restrictions, which would deter foreign investors.

A DTH service provider in India, for example, on an average pays 40 percent tax, including an annual 10 percent licence fee, while ARPUs range between INR 175-220 for most of the six DTH companies. Why would AT&T, parent company of American DirecTV, invest in a DTH operation in India?

Or, for that matter, why would Comcast or PCCW invest in Indian cable TV distribution when a large number of LCO operations are still far from transparent?

Add to that a slowing down of the digital rollout — the earlier two phases of the proposed four-phased digitisation of TV services did manage to bring about increased transparency resulting in higher tax revenues for the government — and you have a pitch that’s not conducive for fair foreign investment game.

Singapore-based market media market research company Media Partners Asia estimates approximately $2 billion has been invested by strategic and foreign institutional investors in Indian pay-TV distribution platforms, which certainly is peanuts considering over 250 million TV homes are target consumers.

If confusing policy signals were not enough, stellar performer ISRO’s new-found love for Make In India and resultant insistence on weaning away all Indian users of satellite-based services from foreign satellites to INSAT — informal as of now but gaining currency — is also fodder to scare a foreign investor as such moves smack of throwback to pre-90s when India was dubbed a closed market and not an open economy.

That’s why, I would insist, till systematic changes are brought about in the country and various government organisations and regulators also see the big picture on regulations instead of functioning within their own small islands, attempts by any Indian government to make India the most favoured destination for foreign investments will not bear ripened fruit. And, in the process, full benefits won’t accrue to the consumers.

(1 USD= INR 67)

(Anjan Mitra is Consulting Editor of Indiantelevision.com and will write a fortnightly column on media matters.)

July 4, 2016

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.

May 19, 2016
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.

May 19, 2016
FY-2015: Comcast Cable’s Q4-2015 video subscriber additions retard video subscriber decline

BENGALURU: Comcast Corporation’s (Comcast) cable communications segment reported its best ever video results in terms of subscriber decline over nine years for the year ended 31 December, 2015 (FY-2015, current year). Video subscriber increase or retard, at least for the current quarter, seems to be a trend in the US, if one were to go by the results declared by a couple of other television signal carriers.

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

Comcast Cable numbers

Comcast Cable reported net additions of 89,000 in the quarter ended 31 December, 2015 (Q4-2015, current quarter) as compared to net additions of 6,000 during the corresponding prior year quarter. In the previous quarter (Q3-2015), Comcast Cable had reported a decline of 48,000 video subscribers. For FY-2015, the segment reported 223.47 lakh video subscribers as compared to 223.83 lakh in FY-2014, a decline of just 36,000 as compared to the 196,000 subscribers that Comcast Cable had lost in FY-2014 vis-?-vis FY-2013.

Customer relationships increased by 281,000 to 270.35 lakh during Q4-2015, a 57.6 per cent improvement compared to an increase of 178,000 in the fourth quarter of 2014, driven by increases in double product and triple product relationships. Video customer net additions of 89,000 were the best result for a quarter in eight years, high-speed Internet customer net additions of 460,000 were the best result for a fourth quarter in nine years, and Voice customer net additions improved to 139,000.

For FY-2015, customer relationships increased by 666,000, an 85.9 per cent improvement compared to net additions of 358,000 in FY-2014. Video customer net losses of 36,000 improved by 81.7 per cent year-over-year and were the best result in nine years. High-speed Internet customer net additions of 1.4 million marked the tenth consecutive year of more than one million net additions, and were the best result in eight years. Voice customer net additions slowed to 282,000.

Revenue for Cable Communications increased 5.9 per cent to $11,980 million in Q4-2015 compared to $11,313 million Q4-2014, driven by increases of 9.8 per cent in high-speed Internet, 4.4 per cent in video and 18.9 per cent in business services, partially offset by a 9.3 per cent decline in advertising due to lower political advertising revenue. Comcast says that the increase in Cable revenue reflects increased customer relationships (see below), customers receiving higher levels of service, customers taking additional services, as well as rate adjustments.

For FY-2015, Cable revenue increased 6.2 per cent to $46,879 million compared to $44,140 million in FY-2014, driven by growth in high-speed Internet, business services and video.

Company speak

Comcast chairman and chief executive officer Brian L. Roberts said, “I am exceptionally proud of our results this year, which were driven by strong performances in each of our core businesses. At Comcast Cable, our focus on delivering the most innovative products and improving the customer experience led to fantastic operating metrics, including our best video customer results in nine years, and our best high-speed Internet customer results in eight years. NBCUniversal had a remarkable year, with record-breaking results at both Theme Parks and Film, and continued success at NBC, which was number one in primetime for the second consecutive season. As we enter 2016, the momentum we see across our portfolio is truly exciting. We are executing at the highest level, investing prudently, and energized and focused on driving growth and shareholder value. Underscoring our confidence in our company, we are increasing our dividend by 10 per cent to $1.10 per share and we also plan to repurchase $5.0 billion of our stock this year.”

Overall numbers

Consolidated Revenue for Q4-2015 increased 8.5 per cent to $19,245 million as compared to $17,732 million in Q4-2014. Consolidated Operating Cash Flow increased 6.7 per cent to $6,272 million from $5,877 million in Q4-2014. Consolidated Operating Income increased 5.7 per cent to $4,002 million as compared to $3,787 million in the previous year. On 13 November, 2015, Comcast acquired a 51 per cent interest in the Universal Studios theme park located in Osaka, Japan (Universal Studios Japan). Q4-2015 and FY-2015 results include $169 million of revenue and $80 million of operating cash flow attributable to Universal Studios Japan from its acquisition date.

Consolidated revenue for Q4-2015 excluding Universal Studios Japan increased 7.6 per cent. Consolidated operating cash flow excluding Universal Studios Japan, as well as $22 million of costs associated with a change in the presentation of amounts payable for a contractual obligation in Q4-2015 and $99 million of Time Warner Cable and Charter transaction-related costs in Q4-2014, increased four per cent.

For FY-2015, consolidated revenue increased 8.3 per cent to $74,510 million as compared to $68,775 million in FY-2014. Consolidated operating cash flow increased 7.7 per cent to $24,678 million as compared to $22,923 million in FY-2014. Consolidated operating income increased 7.3 per cent to $15,998 million as compared to $14,904 million in the prior year. Consolidated revenue for FY-2015 excluding Universal Studios Japan, as well as $376 million of revenue generated by the broadcast of the NFL’s Super Bowl in the first quarter of 2015 and $1.1 billion of revenue generated by the Sochi Olympics in the first quarter of 2014, increased 9.3 per cent. Consolidated operating cash flow excluding Universal Studios Japan, as well as $178 million of transaction-related costs in 2015 and $237 million in 2014, and $22 million of costs associated with a change in the presentation of amounts payable for a contractual obligation4 in the fourth quarter of 2015, increased 7.1 per cent.

Other segments

NBCUniversal

Revenue for NBCUniversal increased 13.0 per cent to $7,477 million in Q4-2015 compared to $6,615 million in Q4-2014. For FY-2015, NBCUniversal revenue increased 11.9 per cent to $28.5 billion compared to $25.4 billion in FY-2014.

Cable Networks

For Q4-2015, Cable Networks segment revenue increased 3.4 per cent to $2,407 million as compared to $2,327 million in Q4-2014. These results reflect a 6.8 per cent increase in distribution revenue, partially reflecting NASCAR Comcast’s sports network, NBCSN, which was more than offset by a modest 0.3 per cent decline in advertising revenue and an increase in sports programming costs, reflecting the impact of NASCAR and higher programming costs for the English Premier League.

For FY-2015, revenue from the Cable Networks segment increased 0.7 per cent to $9,628 million from $9,563 million in FY-2014.

Broadcast Television

For Q4-2015, revenue from the Broadcast Television segment increased seven per cent to $2,498 million compared to $2,335 million in Q4-2014, reflecting a seven per cent increase in advertising revenue, primarily driven by higher rates, a 34.9 per cent increase in content licensing revenue, and higher retransmission consent fees.

For FY-2015, revenue from the Broadcast Television segment was stable at $8,530 million as compared to $8,542 million in FY-2014. Excluding $376 million of revenue generated by the NFL’s Super Bowl in the first quarter of 2015, as well as $846 million of revenue generated by the 2014 Sochi Olympics, revenue increased six per cent, reflecting a 13.7 per cent increase in content licensing revenue, a 4.1 per cent increase in advertising revenue, and higher retransmission consent fees.

Filmed Entertainment

For Q4-2015, revenue from the Filmed Entertainment segment increased 25.8 per cent to $1,6 29billion compared to $1,295 million in Q4-2014, reflecting a 74.9 per cent increase in home entertainment revenue driven by the strong performances of Minions and Jurassic World, as well as a 22.7 per cent increase in content licensing revenue, partially offset by a 37.5 per cent decline in theatrical revenue.

For FY-2015, revenue from the Filmed Entertainment segment increased 45.5 per cent to $7,287 million compared to $5,008 million in FY-2014, driven by higher theatrical revenue from the record performances of Minions, Jurassic World, and Furious 7. Operating cash flow increased 73.5 per cent to $1.2 billion compared to $711 million in 2014, reflecting higher revenue, partially offset by a 40.9 per cent increase in operating expenses, primarily driven by an increase in the amortisation of film costs and higher advertising, marketing and promotion expense due to a larger film slate.

Theme Parks

For Q4-2015, revenue from the Theme Parks segment increased 38.6 per cent to $1,019 million compared to $735 million in Q4-2014. These results reflect higher guest attendance and per capita spending, driven by the continued success of Orlando’s The Wizarding World of Harry Potter – Diagon Alley, Hollywood’s Fast and Furious: Supercharged, as well as Halloween Horror Nights at the Orlando and Hollywood parks, partially offset by an increase in operating costs to support new attractions.

For FY-2015, revenue from the Theme Parks segment increased 27.3 per cent to $3,339 million compared to $2,623 million in FY-2014.

February 3, 2016
FY-2015: Comcast Cable’s Q4-2015 video subscriber additions retard video subscriber decline

BENGALURU: Comcast Corporation’s (Comcast) cable communications segment reported its best ever video results in terms of subscriber decline over nine years for the year ended 31 December, 2015 (FY-2015, current year). Video subscriber increase or retard, at least for the current quarter, seems to be a trend in the US, if one were to go by the results declared by a couple of other television signal carriers.

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

Comcast Cable numbers

Comcast Cable reported net additions of 89,000 in the quarter ended 31 December, 2015 (Q4-2015, current quarter) as compared to net additions of 6,000 during the corresponding prior year quarter. In the previous quarter (Q3-2015), Comcast Cable had reported a decline of 48,000 video subscribers. For FY-2015, the segment reported 223.47 lakh video subscribers as compared to 223.83 lakh in FY-2014, a decline of just 36,000 as compared to the 196,000 subscribers that Comcast Cable had lost in FY-2014 vis-?-vis FY-2013.

Customer relationships increased by 281,000 to 270.35 lakh during Q4-2015, a 57.6 per cent improvement compared to an increase of 178,000 in the fourth quarter of 2014, driven by increases in double product and triple product relationships. Video customer net additions of 89,000 were the best result for a quarter in eight years, high-speed Internet customer net additions of 460,000 were the best result for a fourth quarter in nine years, and Voice customer net additions improved to 139,000.

For FY-2015, customer relationships increased by 666,000, an 85.9 per cent improvement compared to net additions of 358,000 in FY-2014. Video customer net losses of 36,000 improved by 81.7 per cent year-over-year and were the best result in nine years. High-speed Internet customer net additions of 1.4 million marked the tenth consecutive year of more than one million net additions, and were the best result in eight years. Voice customer net additions slowed to 282,000.

Revenue for Cable Communications increased 5.9 per cent to $11,980 million in Q4-2015 compared to $11,313 million Q4-2014, driven by increases of 9.8 per cent in high-speed Internet, 4.4 per cent in video and 18.9 per cent in business services, partially offset by a 9.3 per cent decline in advertising due to lower political advertising revenue. Comcast says that the increase in Cable revenue reflects increased customer relationships (see below), customers receiving higher levels of service, customers taking additional services, as well as rate adjustments.

For FY-2015, Cable revenue increased 6.2 per cent to $46,879 million compared to $44,140 million in FY-2014, driven by growth in high-speed Internet, business services and video.

Company speak

Comcast chairman and chief executive officer Brian L. Roberts said, “I am exceptionally proud of our results this year, which were driven by strong performances in each of our core businesses. At Comcast Cable, our focus on delivering the most innovative products and improving the customer experience led to fantastic operating metrics, including our best video customer results in nine years, and our best high-speed Internet customer results in eight years. NBCUniversal had a remarkable year, with record-breaking results at both Theme Parks and Film, and continued success at NBC, which was number one in primetime for the second consecutive season. As we enter 2016, the momentum we see across our portfolio is truly exciting. We are executing at the highest level, investing prudently, and energized and focused on driving growth and shareholder value. Underscoring our confidence in our company, we are increasing our dividend by 10 per cent to $1.10 per share and we also plan to repurchase $5.0 billion of our stock this year.”

Overall numbers

Consolidated Revenue for Q4-2015 increased 8.5 per cent to $19,245 million as compared to $17,732 million in Q4-2014. Consolidated Operating Cash Flow increased 6.7 per cent to $6,272 million from $5,877 million in Q4-2014. Consolidated Operating Income increased 5.7 per cent to $4,002 million as compared to $3,787 million in the previous year. On 13 November, 2015, Comcast acquired a 51 per cent interest in the Universal Studios theme park located in Osaka, Japan (Universal Studios Japan). Q4-2015 and FY-2015 results include $169 million of revenue and $80 million of operating cash flow attributable to Universal Studios Japan from its acquisition date.

Consolidated revenue for Q4-2015 excluding Universal Studios Japan increased 7.6 per cent. Consolidated operating cash flow excluding Universal Studios Japan, as well as $22 million of costs associated with a change in the presentation of amounts payable for a contractual obligation in Q4-2015 and $99 million of Time Warner Cable and Charter transaction-related costs in Q4-2014, increased four per cent.

For FY-2015, consolidated revenue increased 8.3 per cent to $74,510 million as compared to $68,775 million in FY-2014. Consolidated operating cash flow increased 7.7 per cent to $24,678 million as compared to $22,923 million in FY-2014. Consolidated operating income increased 7.3 per cent to $15,998 million as compared to $14,904 million in the prior year. Consolidated revenue for FY-2015 excluding Universal Studios Japan, as well as $376 million of revenue generated by the broadcast of the NFL’s Super Bowl in the first quarter of 2015 and $1.1 billion of revenue generated by the Sochi Olympics in the first quarter of 2014, increased 9.3 per cent. Consolidated operating cash flow excluding Universal Studios Japan, as well as $178 million of transaction-related costs in 2015 and $237 million in 2014, and $22 million of costs associated with a change in the presentation of amounts payable for a contractual obligation4 in the fourth quarter of 2015, increased 7.1 per cent.

Other segments

NBCUniversal

Revenue for NBCUniversal increased 13.0 per cent to $7,477 million in Q4-2015 compared to $6,615 million in Q4-2014. For FY-2015, NBCUniversal revenue increased 11.9 per cent to $28.5 billion compared to $25.4 billion in FY-2014.

Cable Networks

For Q4-2015, Cable Networks segment revenue increased 3.4 per cent to $2,407 million as compared to $2,327 million in Q4-2014. These results reflect a 6.8 per cent increase in distribution revenue, partially reflecting NASCAR Comcast’s sports network, NBCSN, which was more than offset by a modest 0.3 per cent decline in advertising revenue and an increase in sports programming costs, reflecting the impact of NASCAR and higher programming costs for the English Premier League.

For FY-2015, revenue from the Cable Networks segment increased 0.7 per cent to $9,628 million from $9,563 million in FY-2014.

Broadcast Television

For Q4-2015, revenue from the Broadcast Television segment increased seven per cent to $2,498 million compared to $2,335 million in Q4-2014, reflecting a seven per cent increase in advertising revenue, primarily driven by higher rates, a 34.9 per cent increase in content licensing revenue, and higher retransmission consent fees.

For FY-2015, revenue from the Broadcast Television segment was stable at $8,530 million as compared to $8,542 million in FY-2014. Excluding $376 million of revenue generated by the NFL’s Super Bowl in the first quarter of 2015, as well as $846 million of revenue generated by the 2014 Sochi Olympics, revenue increased six per cent, reflecting a 13.7 per cent increase in content licensing revenue, a 4.1 per cent increase in advertising revenue, and higher retransmission consent fees.

Filmed Entertainment

For Q4-2015, revenue from the Filmed Entertainment segment increased 25.8 per cent to $1,6 29billion compared to $1,295 million in Q4-2014, reflecting a 74.9 per cent increase in home entertainment revenue driven by the strong performances of Minions and Jurassic World, as well as a 22.7 per cent increase in content licensing revenue, partially offset by a 37.5 per cent decline in theatrical revenue.

For FY-2015, revenue from the Filmed Entertainment segment increased 45.5 per cent to $7,287 million compared to $5,008 million in FY-2014, driven by higher theatrical revenue from the record performances of Minions, Jurassic World, and Furious 7. Operating cash flow increased 73.5 per cent to $1.2 billion compared to $711 million in 2014, reflecting higher revenue, partially offset by a 40.9 per cent increase in operating expenses, primarily driven by an increase in the amortisation of film costs and higher advertising, marketing and promotion expense due to a larger film slate.

Theme Parks

For Q4-2015, revenue from the Theme Parks segment increased 38.6 per cent to $1,019 million compared to $735 million in Q4-2014. These results reflect higher guest attendance and per capita spending, driven by the continued success of Orlando’s The Wizarding World of Harry Potter – Diagon Alley, Hollywood’s Fast and Furious: Supercharged, as well as Halloween Horror Nights at the Orlando and Hollywood parks, partially offset by an increase in operating costs to support new attractions.

For FY-2015, revenue from the Theme Parks segment increased 27.3 per cent to $3,339 million compared to $2,623 million in FY-2014.

February 3, 2016
FCC action could stifle TV innovation

On Wednesday, FCC chairman Tom Wheeler proposed a new technology mandate that would require satellite and cable TV providers to disaggregate or separate their services so that a few companies could repackage them as their own without negotiating for content rights like everybody else in the market does today. While the chairman touts consumer benefits to his proposal, the opposite is the case.

The proposal, like prior federal government technology mandates, would impose costs on consumers, adversely impact the creation of high-quality content, and chill innovation. It also flies in the face of the rapid changes that are occurring in the marketplace and benefitting consumers.

As a member of the technical advisory committee that the FCC formed, I, along with others on the committee, put in an extraordinary amount of time examining these issues. The Report we produced comprehensively discussed the widely-adopted apps-based model. The chairman ignores the less regulatory apps-based approach that is already expanding the array of choices that consumers have to access content on retail devices.

In the 21st century, television has been on a tear of innovation. In the 1980s, wanting your MTV became an anthem. The 1990s saw an explosion of channels and diversity of voices on television, and the beginnings of HDTV. Change has been accelerating ever since.

Netflix now has more customers in the US than any traditional TV provider; tablets, smartphones, smart TVs, connected devices for accessing video are ubiquitous; and new online video services are announced all the time. There are services from online powerhouses like Amazon; from new entrants like Sony’s Play Station Vue and Dish’s Sling TV that sell packages including linear channels; and from programmers like HBO, Showtime, and CBS. Just this week, we’ve seen the influence of these new services in locking up content at Sundance.

These changes are bringing enormous consumer benefits — the quantity and variety of high-quality programming is better than ever, and consumers expect access to content anytime, anywhere, and on devices of their choice.

Comcast is responding with our innovative X1 platform, and enabling access on a growing array of devices. Like other traditional TV distributors, online video distributors, networks, and sports leagues, Comcast is using apps to deliver its Xfinity service to popular customer-owned retail devices.

These apps are wildly popular with consumers. Comcast customers alone have downloaded our apps more than 20 million times. This apps revolution is rapidly proliferating, and we are working with others in the industry and standards-setting bodies to expand apps to reach even more devices.

Given these exciting, pro-consumer marketplace developments, it is perplexing that the FCC is now considering a proposal that would impose new government technology mandates on satellite and cable TV providers with the purported goal of promoting device options for consumers.

A little background here. Congress enacted “navigation device” legislation twenty years ago that directed the FCC to foster retail alternatives to cable set-top boxes. The FCC responded with a CableCARD mandate. Despite the cable industry’s longstanding and ongoing support for CableCARDs, consumers showed little interest in the technology; it saddled cable operators and their customers with over $1 billion in unnecessary costs; and, it was overtaken by the explosive growth in connected devices and apps.

It is strange now that the FCC is ignoring the important lesson of history that intrusive federal governmental regulatory interference in the market just doesn’t work by proposing new mandates at a time when Congress’s goals are being realized in the marketplace and consumers have unprecedented device choices that go well beyond what anyone could possibly have imagined even a decade ago.

The proposal would require traditional TV distributors like satellite and cable providers – but not other video distributors – to re-architect their networks and develop an undefined new piece of customer equipment just so device companies can take apart the video service and selectively reassemble it.

Consumer costs would rise, content security would weaken, and consumer protections such as privacy would erode. It would undermine intellectual property rights and content licensing agreements. The Chairman has said that his proposal addresses these concerns, but the simple fact is that the proposal strips away the tools that video distributors use to present service in a way that satisfies security, regulatory, and licensing requirements.

As noted, the FCC’s track record on these types of technology mandates has been less than stellar. CableCARD is just one example. Another is the 1394 output mandate. The FCC required cable operators to include 1394 outputs on their set-top boxes, the mandate went on for years even after it was clear that other outputs had won out in the marketplace.

Already, a broad range of parties is weighing in to support the innovation that is occurring in the marketplace and raising concerns including Disney, 21st Century Fox, NBCUniversal, and Viacom as well as small, independent, and diverse programmers like TV One, Fuse Media, Crossings TV , Revolt, and Baby First Americas; device manufacturers like Roku, Cisco, and ARRIS; diversity organizations such as the Hispanic Technology and Telecommunications Partnership (HTTP), a coalition of Hispanic organizations; and legislators, including 30 members of the Congressional Black Caucus and the National Black Caucus of State Legislators.

As the Commission considers taking this initial step to launch a rulemaking proceeding to determine whether to impose new mandates and if so, what those should ultimately be, we look forward to studying the proposal and providing constructive input. We hope the FCC will decide to avoid this major step backward for consumers and video innovation.

(Disclaimer: The article has been sourced from Comcast’s website. The views expressed here are purely personal views of the author, who is Comcast Cable SVP – business and industry affairs and chief technology officer Mark Hess and Indiantelevision.com does not necessarily subscribe to them.)

February 1, 2016
FCC action could stifle TV innovation

On Wednesday, FCC chairman Tom Wheeler proposed a new technology mandate that would require satellite and cable TV providers to disaggregate or separate their services so that a few companies could repackage them as their own without negotiating for content rights like everybody else in the market does today. While the chairman touts consumer benefits to his proposal, the opposite is the case.

The proposal, like prior federal government technology mandates, would impose costs on consumers, adversely impact the creation of high-quality content, and chill innovation. It also flies in the face of the rapid changes that are occurring in the marketplace and benefitting consumers.

As a member of the technical advisory committee that the FCC formed, I, along with others on the committee, put in an extraordinary amount of time examining these issues. The Report we produced comprehensively discussed the widely-adopted apps-based model. The chairman ignores the less regulatory apps-based approach that is already expanding the array of choices that consumers have to access content on retail devices.

In the 21st century, television has been on a tear of innovation. In the 1980s, wanting your MTV became an anthem. The 1990s saw an explosion of channels and diversity of voices on television, and the beginnings of HDTV. Change has been accelerating ever since.

Netflix now has more customers in the US than any traditional TV provider; tablets, smartphones, smart TVs, connected devices for accessing video are ubiquitous; and new online video services are announced all the time. There are services from online powerhouses like Amazon; from new entrants like Sony’s Play Station Vue and Dish’s Sling TV that sell packages including linear channels; and from programmers like HBO, Showtime, and CBS. Just this week, we’ve seen the influence of these new services in locking up content at Sundance.

These changes are bringing enormous consumer benefits — the quantity and variety of high-quality programming is better than ever, and consumers expect access to content anytime, anywhere, and on devices of their choice.

Comcast is responding with our innovative X1 platform, and enabling access on a growing array of devices. Like other traditional TV distributors, online video distributors, networks, and sports leagues, Comcast is using apps to deliver its Xfinity service to popular customer-owned retail devices.

These apps are wildly popular with consumers. Comcast customers alone have downloaded our apps more than 20 million times. This apps revolution is rapidly proliferating, and we are working with others in the industry and standards-setting bodies to expand apps to reach even more devices.

Given these exciting, pro-consumer marketplace developments, it is perplexing that the FCC is now considering a proposal that would impose new government technology mandates on satellite and cable TV providers with the purported goal of promoting device options for consumers.

A little background here. Congress enacted “navigation device” legislation twenty years ago that directed the FCC to foster retail alternatives to cable set-top boxes. The FCC responded with a CableCARD mandate. Despite the cable industry’s longstanding and ongoing support for CableCARDs, consumers showed little interest in the technology; it saddled cable operators and their customers with over $1 billion in unnecessary costs; and, it was overtaken by the explosive growth in connected devices and apps.

It is strange now that the FCC is ignoring the important lesson of history that intrusive federal governmental regulatory interference in the market just doesn’t work by proposing new mandates at a time when Congress’s goals are being realized in the marketplace and consumers have unprecedented device choices that go well beyond what anyone could possibly have imagined even a decade ago.

The proposal would require traditional TV distributors like satellite and cable providers – but not other video distributors – to re-architect their networks and develop an undefined new piece of customer equipment just so device companies can take apart the video service and selectively reassemble it.

Consumer costs would rise, content security would weaken, and consumer protections such as privacy would erode. It would undermine intellectual property rights and content licensing agreements. The Chairman has said that his proposal addresses these concerns, but the simple fact is that the proposal strips away the tools that video distributors use to present service in a way that satisfies security, regulatory, and licensing requirements.

As noted, the FCC’s track record on these types of technology mandates has been less than stellar. CableCARD is just one example. Another is the 1394 output mandate. The FCC required cable operators to include 1394 outputs on their set-top boxes, the mandate went on for years even after it was clear that other outputs had won out in the marketplace.

Already, a broad range of parties is weighing in to support the innovation that is occurring in the marketplace and raising concerns including Disney, 21st Century Fox, NBCUniversal, and Viacom as well as small, independent, and diverse programmers like TV One, Fuse Media, Crossings TV , Revolt, and Baby First Americas; device manufacturers like Roku, Cisco, and ARRIS; diversity organizations such as the Hispanic Technology and Telecommunications Partnership (HTTP), a coalition of Hispanic organizations; and legislators, including 30 members of the Congressional Black Caucus and the National Black Caucus of State Legislators.

As the Commission considers taking this initial step to launch a rulemaking proceeding to determine whether to impose new mandates and if so, what those should ultimately be, we look forward to studying the proposal and providing constructive input. We hope the FCC will decide to avoid this major step backward for consumers and video innovation.

(Disclaimer: The article has been sourced from Comcast’s website. The views expressed here are purely personal views of the author, who is Comcast Cable SVP – business and industry affairs and chief technology officer Mark Hess and Indiantelevision.com does not necessarily subscribe to them.)

February 1, 2016
Q3-2015: E. W. Scripps revenue up 49%; Retransmission revenue doubles

BENGALURU: The E.W. Scripps Company (EWS) reported 49.2 per cent YoY growth in consolidated revenue from continuing operations for the quarter ended 30 September, 2015 (Q3-2015, current quarter) at $189.69 million as compared to $123.13 million in the corresponding year ago quarter.

The company’s advertisement revenue in the current quarter increased 39.8 per cent to $144.98 million as compared to the $103.70 million in the corresponding year ago quarter. Retransmission revenue more than doubled YoY (was 2.4 times) at $36.29 million as compared to $15.24 million in Q3-2014. ‘Other’ revenues also more than doubled to $ 8.42 million from $4.19 million in the year ago quarter.

EWS net loss for Q3-2015 increased to $24.44 million as compared to the loss of $1.34 million in Q3-2014. EWS reported net loss of $24.44 million from continuing operation as compared to a profit of $1.04 million in Q3-2014. Net loss from discontinued operations in the current quarter was NIL as compared to a net loss of $2.38 million in Q3-2014.

Net loss per basic share of common stock was $0.29 in the current quarter as compared to a net income of $0.02 in Q2-2014.

EWS chairman, president and CEO Rich Boehne said, “Third-quarter performance in our core broadcast television business was aided by a comeback in automotive advertising and a leap in retransmission fees. The increase in retransmission revenue alone offset the decline in political advertising revenue in the off-cycle year.”

“In our TV markets we’re setting the stage for 2016, when increases in local news ratings, a 50 percent increase in retransmission fees, and presidential election spending across an expanded footprint of potential swing states should come together for a strong performance,” he added.

“Also in the third quarter, we expanded our reach into the fast-growing over-the-top media marketplace with the accelerated rollout of our OTT video news service Newsy. This service aimed at millennial news audiences now also includes OTT distribution on Apple TV, Comcast’s Watchable, Roku, Amazon’s Fire TV, Google Chromecast, PlutoTV and Xumo, with more to come shortly. Our expanded ambition for Newsy, changes in the marketplace, and our commitment to invest in this strategy led us to a pivot in the business model,” he said.

“On the audio side of our over-the-top strategy, we purchased Midroll, a leading podcast producer and advertising network, and then launched its subscription-based app, Howl, to strong response. Not only is Midroll a growing content play for mobile-media consumers, it’s also designed to be an alternative advertising model that largely defies ad blocking.”

“While working to build value through our current and evolving businesses, we also used our strong balance sheet and cash flow to repurchase shares. We expect our overall financial position to further strengthen as we move through the presidential election year and top our four-year business cycle.”

Segment numbers

The company has four segments: Television, Radio, Digital, Syndication and other.

EWS’ Television segment revenue in the current quarter increased 35.2 per cent to $157.44 million $116.44 million in the corresponding year ago quarter. Operating income for the segment in Q3-2015 increased two per cent to $31.71 million from $30.51 million in the corresponding year ago quarter.

On 1 April, 2015, EWS acquired the broadcast group owned by Journal Communications, Inc. The businesses acquired included 12 television stations and 34 radio stations. EWS’ Radio segment reported revenue in Q3-2015 of $20.42 million. The segment reported operating income of $4.07 million in the current quarter.

EWS’ Digital segment revenues in the current quarter more than doubled to $10.86 million as compared to the $5.36 million in q2-2014. The segment reported lower operating loss of $3.64 million in the current quarter as compared to $6.21 million in Q2-2014.

EWS’ Syndication and other segment reported 27.8 per cent decline in operating revenue to $0.97 million as compared to $1.35 million in the corresponding year ago quarter. The segment’s loss in the current quarter declined to $0.57 million from $0.67 million in the corresponding year ago quarter.

November 10, 2015
Q3-2015: Comcast Cable revenue up 6.3%, loses 48K video subs; NBCU shines

BENGALURU: Comcast Corporation’s (Comcast) Cable Communications reported revenue growth of 6.3 per cent at $11,740 million in the quarter ended 30 September, 2015 (Q3-2015, current quarter) as compared to the $11,041 million in the corresponding year ago quarter. The segment’s revenue in the current quarter was almost flat (increased by 0.09 per cent) as compared to $11,729 million reported for the immediate trailing quarter.

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

Subscription numbers have been mentioned in lakhs and revenue and other financial numbers in millions of US dollars.

Operating cash flow of Comcast’s Cable Communications in Q3-2015 improved 6.4 per cent to $4748 million (40.4 per cent margin) as compared to the $4,464 million (40.4 per cent margin) in Q3-2014.

In terms of decline in video customers, Comcast’s Cable Communication reported the best quarter among the last nine quarters. The company lost only 48,000 video customers in Q3-2015 as compared to the decline of 69,000 in Q2-2015.

Comcast NBCUniversal segment reported a 20.8 per cent growth in revenue at $7,151 million in the current quarter as compared to the $5,921 million in Q3-2014. Operating cash flow of the segment in Q3-2015 improved 17 per cent to $1,657 million as compared to the $1,416 million in Q3-2014.

Overall, Comcast reported a 11.2 per cent growth in consolidated revenue (excluding Olympics and Super Bowl) at $18,669 million as compared to the $16,791 million in the corresponding year ago quarter. Operating Income in Q3-2015 increased 6.9 per cent to $4001 million as compared to the $3745 million in Q3-2014, while Free Cash Flow increased 6.8 per cent to $2663 million as compared to $2494 million in Q3-2014. Earnings per share in the current quarter however declined 19.2 per cent to $0.80 as compared to $0.99 in Q3-2014.

Comcast chairman and CEO Brian L Roberts said, ”I’m pleased to report that our businesses generated outstanding revenue and operating cash flow growth for the third quarter of 2015. At Cable Communications, overall customer relationships increased 156,000, a 90 per cent improvement compared to last year, video subscriber results were the best for a third quarter in nine years, high-speed Internet subscriber results were the best for a third quarter in six years, and churn across all product categories continues to improve. NBCUniversal also delivered terrific results, including another record-breaking box office quarter driven by Minions and Jurassic World, the highest summer attendance ever at our theme parks, and maintaining the #1 broadcast network ranking for five summers in a row. These outstanding results from our unique portfolio of complementary businesses underscore our confidence that we are well positioned to compete, continue our strong performance and drive shareholder value.”

Cable Communications numbers

Six sub-segments contribute to Comcast’s Cable Communications – Video; High Speed Internet; Voice; Business Services; Advertising; and ‘Other.’

Growth in revenue was driven by increases of 10.2 per cent in high-speed Internet revenue, 19.5 per cent in business services and 3.3 per cent in video. The company says that the increase in Cable revenue reflects increased customer relationships, customers receiving higher levels of service and customers taking additional services, as well as rate adjustments.

Customer relationships

Overall, Cable Communications customer relationships in Q3-2015 increased to 274.21 lakh as compared to 268.57 lakh in Q3-2014. During Q3-2015, the segment saw net addition of 156,000 customer relationships as compared to the net addition of 82,000 in the corresponding year ago quarter.

Single, double and triple play customers

While the number of single product customers in the current quarter was lower at 83.67 lakh, it grew by 24,000, as compared to the 84.44 lakh in Q3-2014, which saw a decline of 66,000. Double Product customers were higher at 90.66 lakh in Q3-2015 as compared to 86.50 lakh in Q3-2014. In Q3-2015, the number of double product customers increased by 130,000 as compared to the increase of 76,000 in Q3-2014. Triple Product customers in Q3-2015 increased to 99.88 lakh as compared to 97.63 lakh in the corresponding year ago quarter. Q3-2015 saw the number of triple product customers’ increase by a mere 1,000 as compared to the increase of 72,000 n Q3-2014.

Video

Revenue from Video improved 3.3 per cent to $5,348 million in Q3-2015 as compared to the $5,179 million in Q3-2014. For the current quarter, the company reported a net loss of 48,000 customers, while its customer base declined by 118,000 to 222.58 lakhs as compared to the 223.76 lakh customers in Q3-2014.

High Speed Internet

High Speed Internet revenue in the current quarter increased 10.2 per cent to $3,129 million as compared to the $2,840 million in Q3-2014.

The company added 320,000 high speed internet customers in Q3-2015 and reported a customer base of 228.68 lakh. In Q3-2014, Cable Communications had added 315,000 customers and reported a high spend internet customer base of 215.86 lakh.

Voice

Despite a higher customer base, Voice revenue in Q3-2015 declined 1.4 per cent to $900 million as compared to the $913 million in the corresponding year ago quarter.

Voice customer base in Q3-2015 increased to 113.36 lakh as compared to the 110.70 lakh in the corresponding quarter of last year. In Q3-2015, Cable Communications added only 17,000 customers as compared to the 68,000 in Q3-2014.

Business Services revenue in Q3-2015 increased 19.2 per cent to $1,208 million as compared to the $1,011 million in Q3-2014.

Advertising revenue in the current quarter was almost flat (declined 0.2 per cent) to $593 million as compared to $596 million in the corresponding year ago quarter.

‘Other’ revenue increased 11.2 per cent to $562 million in Q3-2015 as compared to the $ 502 in Q3-2014.

NBCUniversal

As mentioned above, NBCUniversal division revenue increased 20.8 per cent YoY in the current quarter, while Operating Cash Flow increased 17 per cent driven by strong results at Filmed Entertainment and Theme Parks.

Four sub-segments add to NBCUniversal’s revenue – Cable Networks; Broadcast Television; Filmed Entertainment; and Theme Parks.

Cable Networks reported seven per cent growth in operating revenue at $2,412 million in Q3-2015 as compared to the $2,255 million in the corresponding year ago quarter, driven by an 8.6 per cent increase in distribution revenue and a two per cent increase in advertising revenue, partially reflecting the introduction of NASCAR on Comcast’s sports network, NBCSN, as well as a 17.6 per cent increase in content licensing and other revenue. Operating cash flow decreased 3.9 per cent to $835 million compared to $868 million in Q3-2014, reflecting higher revenue, more than offset by increased sports programming costs, driven by the impact of NASCAR., informs the company.

Broadcast Television revenue in the current quarter increased 11.3 per cent in Q3-2015 at $1,971 million as compared to the $1,770 million in Q3-2014 reflecting a 33.5 per cent increase in content licensing revenue, higher retransmission consent fees, and a 2.8 per cent increase in advertising revenue. Operating cash flow increased 6.1 per cent to $150 million compared to $142 million in Q3-2014, reflecting higher revenue, partially offset by an increase in programming and production costs associated with the timing of content provided under NBCUniversal’s licensing agreements and studio production costs.

Filmed Entertainment revenue increased 64 per cent to $1,946 million in Q3-2015 as compared to the $1,186 million in the corresponding year ago quarter driven by higher theatrical revenue from the record performances of Minions andJurassic World, continuing on the earlier success of Furious 7. Operating cash flow increased $225 million to $376 million compared to $151 million in Q3- 2014, reflecting higher revenue, partially offset by an increase in the amortisation of film costs and higher advertising, marketing and promotion expense due to a larger film slate.

Theme Parks revenue increased 14.1 per cent to $876 million as compared to the $786 million in the corresponding year ago quarter reflecting higher guest attendance and per capita spending, driven by the continued success of Orlando’s The Wizarding World of Harry Potter – Diagon Alley, as well as Fast and Furious: Supercharged at the Hollywood park. Q3-2015 operating cash flow increased 14.1 per cent to $458 million compared to $402 million in the same period last year, reflecting higher revenue, partially offset by an increase in operating costs to support new attractions and $18 million of transaction-related costs associated with the development of a theme park in China.

October 27, 2015
Comcast & Cartoon Network team up on new voice remote searches

MUMBAI: Speech recognition technology is more popular than ever and in the past few months alone with related announcements from Amazon, Apple, and Google.

Comcast launched the cable industry’s first voice controlled TV remote earlier this year and the response has been terrific with nearly 1.5 million homes now having one. What’s more Comcast is distributing about 70,000 new remotes each week.

“Users are speaking aloud to find titles, channels, actors and actresses as well as to record, tune, fast forward and rewind. Last month alone, there were 20 million voice commands made using our new remote.

We’ve added some fun features too: quoting certain movies gets you to the film just as fast as a title search, Taylor Swift talks back when you search for her songs, and our remote happens to speak perfect Minionese,” said Comcast Cable executive director, product management Jeanine Heck.

Now Comcast has added another interactive component in partnership with the Cartoon Network, which will be especially entertaining for kids.

“It turns out that one of our most ‘voice-searched’ titles is Teen Titans Go!, a Cartoon Network fan favorite. Now, just by saying ‘Hello Beast Boy’ or ‘Boy Wonder,’ viewers are taken to the show’s homepage on X1 and will hear a special audio greeting from one of the characters. They also can say the names of other Titans like Cyborg, Robin and Raven and hear responses unique to each character,” Heck added.

Comcast is planning add more new functions to its voice remote over time.

October 24, 2015