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Tag: Comcast

  • Comcast acquires majority stake in Universal Studios Japan for $1.5 billion

    Comcast acquires majority stake in Universal Studios Japan for $1.5 billion

    MUMBAI: Comcast NBC Universal has agreed to purchase 51 per cent ownership of Universal Studios Japan in a recapitalisation transaction, partnering with the current owners including Goldman Sachs, USJ’s CEO Glenn Gumpel, Asian private-equity firm MBK Partners, and U.S. hedge fund Owl Creek Asset Management. 

     

    Comcast NBC Universal’s purchase price for the majority ownership of the theme park destination is $1.5 billion (?183 billion).

        

    Located in Osaka and featuring classic Universal attractions as well as attractions and shows specifically designed for the Japanese market, USJ opened in 2001 and has experienced continued growth in attendance and revenue.

     

    “We are excited to expand our global footprint with this wonderful theme park in Osaka and are excited by the opportunities that lie ahead in Japan and all of Asia. This investment represents a huge opportunity and commitment to creating value for our shareholders and continuing to grow internationally,” said Comcast chairman and CEO Brian L. Roberts.

     

    Acquiring majority ownership of Universal Studios Japan continues Comcast NBC Universal’s ongoing investment strategy for its US parks in Orlando and Hollywood.

     

    “We want to expand our theme park business around the world and this investment in Universal Studios Japan fits perfectly with that strategy. Our theme parks in the U.S. have performed exceptionally well and we look forward to working with our partners to achieve that success in Japan as we plan to introduce significant attractions at USJ over the next five years,” added NBC Universal CEO Steve Burke.

  • Comcast Business forms new unit targeting Fortune 1000 companies

    Comcast Business forms new unit targeting Fortune 1000 companies

    MUMBAI: Comcast Business has created a new Enterprise Services unit that will target Fortune 1000 companies and other large enterprises that have multiple locations nationwide.

     

    This new enterprise-level service and delivery organisation will offer a portfolio of managed enterprise solutions that includes Broadband, Ethernet, Voice, Router, Security, Business Continuity and Wi-Fi. The company also acquired a managed services company and has signed network agreements with other cable operators to further support national accounts.

     

    Comcast Business has already signed customers from multiple industries, including financial services firms, banks, hospitality chains and retailers.

     

    Technology industry veteran and former SpaceNet Inc. CEO Glenn Katz will lead the new group within Comcast Business.

     

    “We’re committed to expanding and enhancing our offerings for businesses of all sizes, and having the expertise, tools and portfolio in place to deliver customised service packages to nationwide enterprises is a key part of our growth strategy. Large companies need a provider who can help them manage complex networks, develop business continuity plans and integrate cloud-based applications. Our entry into this segment of the market will introduce new innovation and choice,” said Comcast Business president Bill Stemper.

     

    Comcast’s Enterprise Services team will design, build, implement and manage customised communications networks for large enterprise customers who need managed Broadband, Ethernet, Voice, Router, Business Continuity and Wi-Fi services in locations across the country. The new product portfolio will be branded “Managed Enterprise Solutions.”

     

    According to IDC, a Framingham, MA-based IT industry analyst firm, the US market for managed services is expected to increase from $29 billion in 2014 to $52 billion in 2019.

     

    “Comcast Business’ entry into the enterprise network services market takes its value proposition of competitively priced high-speed, high availability connectivity to a demanding set of customers looking for alternatives to the incumbent national telcos and/or do-it-yourself multiple provider solutions. With its national network reach and end-to-end service delivery capabilities, Comcast is well positioned to serve the outsourced network management needs of large business that require increasing network capacity to serve expanding multi-site requirements,” added IDC research VP Melanie Posey.

     

    To help Comcast Business support these national accounts, it recently acquired Contingent Network Services; a technology deployment and managed services company that helps enterprise customers outsource their day-to-day network operations. Contingent provides deployment and managed services to a number of well-known national brands. The company will become a wholly-owned subsidiary of Comcast Business and will continue to operate under the Contingent brand name.

     

    “Contingent’s mission is to provide clients with high-quality, cost-effective network and deployment services wherever and whenever needed for reliable communications across an enterprise, and we couldn’t be more excited for them to join our team. By joining forces with Comcast Business, Contingent can further expand their reach and take advantage of Comcast’s extensive fiber and hybrid fiber coax network to give enterprises the optimal network experience to meet their business and technology requirements,” said Katz.

     

    Comcast Business has also reached network agreements with leading cable operators making it easier to serve national clients with local offices and locations that span different geographies.

  • Entertainment Studios’ $20 billion lawsuit against Comcast, Time Warner Cable & Sharpton reopened

    Entertainment Studios’ $20 billion lawsuit against Comcast, Time Warner Cable & Sharpton reopened

    MUMBAI: Federal Judge Terry Hatter has issued a ruling re-opening the $20 billion racial discrimination in contracting lawsuit filed by Entertainment Studios Networks, Inc. and the National Association of African-American Owned Media (NAAAOM).

     

    “I have always believed in this historic case. I am confident we will prevail,” said Miller Barondess, L.L.P. partner and lead attorney for the plaintiffs Louis R. (Skip) Miller.

     

    “We will continue to vigorously pursue Comcast and Time Warner Cable, who spend approximately $25 billion annually licensing cable networks with less than $3 million going to 100 percent African-American owned media,” said NAAAOM president Mark DeVitre.

     

    “We will not stop until the discrimination stops and we achieve true economic inclusion,” said Entertainment Studios founder, chairman and CEO Byron Allen.

  • Court dismisses $20 bn lawsuit against Comcast, Time Warner Cable; NAAAOM to appeal

    Court dismisses $20 bn lawsuit against Comcast, Time Warner Cable; NAAAOM to appeal

    MUMBAI: Federal Judge Terry Hatter issued a short ruling dismissing the $20 billion racial discrimination in contracting lawsuit filed by the National Association of African American Owned Media (NAAAOM) and Entertainment Studios Networks, Inc.

     

    Judge Hatter’s ruling did not provide any detail as to why the case was dismissed except to say that the Plaintiffs had failed to allege a claim for relief.

     

    “Knowing that our lawsuit helped the FCC and the DOJ deny Comcast’s bid to buy Time Warner Cable is already a big win for us. We are going to immediately appeal this decision to the 9th Circuit Court of Appeals who I believe will deliver us a favorable decision,” said Entertainment Studios Networks chairman, CEO and founder Byron Allen.

     

    “We will continue to vigorously pursue Comcast and Time Warner Cable, who spend approximately $25 billion annually licensing cable networks with less than $3 million going to 100% African American owned media. We will not stop until the discrimination stops and we achieve true economic inclusion,” said NAAAOM president Mark DeVitre.

  • Comcast & Discovery Communications renew long-term distribution deal

    Comcast & Discovery Communications renew long-term distribution deal

    MUMBAI: Comcast Corporation and Discovery Communications have renewed their long-term distribution agreement that will deliver Discovery’s 12 US networks to Comcast’s Xfinity TV customers across the US.

     

    The renewal also includes TV Everywhere rights, ensuring Xfinity TV customers have access to Discovery brands and programs on multiple platforms, both in and out of the home.

     

    “Comcast is a dynamic and innovative company and has been a great partner of Discovery’s for over two decades. We look forward to continuing our relationship and unlocking the value of Discovery’s content in even greater ways for Xfinity viewers,” said Discovery Communications president and CEO David Zaslav.

     

    “We’re pleased to extend our relationship with Discovery and its family of networks under this long-term renewal agreement. This renewal will enable our Xfinity TV customers to experience Discovery’s content in more ways and on more platforms than ever before,” added Comcast Cable president and CEO Neil Smit.

  • Q2-2015: Comcast reports 11% revenue growth, loses 69,000 video customers

    Q2-2015: Comcast reports 11% revenue growth, loses 69,000 video customers

    BENGALURU: Comcast Corporation (Comcast) reported 11.3 per cent growth in consolidated revenue in Q2-2015 (quarter ended 30 June, 2015) to $18,743 million as compared to the $16,844 million in the corresponding year ago quarter. 

     

    In Q1-2015, the company had reported consolidated revenue of $17,853 million. The company’s Cable Communications and NBCUniversal segments reported a y-o-y increase in revenue.

     

    Comcast consolidated operating income increased 7.9 per cent in Q2-2015 to $4105 million as compared to the $3804 million in Q2-2014 and was 5.5 per cent more than the $3890 million Q1-2015. Year to date (YTD, 6M-2015), the company’s consolidated revenue grew 6.8 per cent to $36,596 million from $34,252 in the corresponding year ago period. 

     

    Though the company’s Cable Communication segment reported a fall of 69,000 video customers in Q2-2015, video revenue grew 3.7 per cent in Q2-2015 to $5431 million from $5239 million during the corresponding year ago quarter. YTD, video revenue increased 3.3 per cent to $10,762 million as compared to $10,417 million in 6M-2014.

     

    Comcast Chairman and CEO Brian L Roberts said, “Our second quarter results, including 11.3 per cent revenue growth and eight per cent operating cash flow growth, demonstrate the strength and momentum we are seeing across our businesses. In Cable, high-speed Internet and business services continued to perform extremely well, and, significantly, this was the best second quarter video customer results we’ve had in nine years. Our focus on accelerating the deployment of our transformative X1 platform, as well as efforts to improve customer service, are clearly making a difference, with lower churn across all product categories. NBCUniversal had an exceptional quarter, led by the record-breaking box office performances of Jurassic World and Furious 7 and continued strong momentum in our theme parks. In addition, NBC won the 2014-2015 broadcast season for adults 18-49. Our teams are executing incredibly well across our strong and diversified portfolio, and I am excited for what we can deliver in the rest of 2015 and beyond.”

     

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

     

    Let us look at the numbers reported by Comcast

     

    Cable Communications

     

    Comcast’s Cable Communications segment has three products – video, high speed internet and voice.  Five streams add to the segment’s revenue – video, high speed internet, voice, business service and advertising.

     

    This segment’s revenue in Q2-2015 grew 6.3 per cent to $11,729 million as compared to the $11,029 million in Q1-2014. YTD also, the segment’s revenue increased 6.3 per cent to $23,159 million as compared to $21,786 million in 6M-2014. 

     

    Cable Communications customer relationships increased to 272.65 lakh in Q2-2015 as compared to 267.75 lakh in Q2-2014.

     

    Single product customer relationships declined in Q2-2015 to 83.43 lakh from 85.10 lakh in Q1-2014; double product customer relationships in Q2-2015 to 89.36 lakh from 85,74,000 in Q2-2014; triple product customer relationships increased in Q2-2015 to 99.87 lakh from 96.91 lakh in the corresponding year ago quarter.

     

    Operating Cash Flow for Cable Communications increased 5.1 per cent to $4798 million Q2-2015 compared to $4564 million in Q2-2014, reflecting higher revenue, partially offset by a 7.2 per cent increase in operating expenses primarily related to higher video programming costs, as well as an increase in technical and product support expenses driven by an acceleration in the deployment of X1 and investments to improve the customer experience. As a result, this quarter’s operating cash flow margin was 40.9 per cent compared to 41.4 per cent in the prior year period.

     

    For the six months ended 30 June, 2015, Cable operating cash flow increased 5.7 per cent to $9472 million compared to $8964 million in 6M-2014. YTD operating cash flow margin was 40.9 per cent compared to 41.1 per cent in 2014.

     

    Video 

     

    Video revenue has been mentioned above. The company lost 69,000 video customers in Q2-2015, much lower than the 144,000 customers it lost in Q1-2014. Total video customer relationships in Q2-2015 stood at 223.06 lakh as compared to the 224.57 lakh in the corresponding year ago quarter.

     

    High speed Internet

     

    High speed internet revenue in Q2-2015 grew 10 per cent to $3101 million from $2819 million in Q2-2014. YTD, revenue from this stream grew 10.3 per cent to $6145 million from $5569 million in 6M-2014.

     

    High speed internet customer relationships in Q2-2015 improved by 180,000 as compared to the improvement of 203,000 in Q2-2014. The total number of high speed internet customer relationships in Q2-2015 stood at 225.48 lakh, in Q2-2015, the corresponding number was 212.71 lakh.

     

    Voice

     

    Voice revenue in the current quarter at $903 million declined 2.1 per cent as compared to the $921 million in Q2-2014. YTD, revenue from this stream declined 1.8 per cent to $1809 million as compared to the $1842 million in 6M-2014.

     

    Voice customer relationships increased to 113.19 lakh as compared to the 110.03 lakh in Q2-2014.

     

    Business services, Advertising and Other

     

    Business services revenue grew 20.4 per cent to $1161 million in Q2-2015 as compared to $961 million in Q2-2015. Business services revenue in 6M-2015 increased 20.9 per cent to $2275 million as compared to the $1883 million in 6M-2014.

     

    Advertising revenue in Q2-2015 declined by 0.9 per cent to $582 million from $589 million in Q2-2014, while for 6M-2015, revenue declined 0.8 per cent to $1086 million as compared to $1094 million in 6M-2014.

     

    ‘Other’ revenue in Q1-2015 increased 10.9 per cent to $551 million as compared to the $497 in the corresponding year ago quarter. YTD, ‘Other’ revenue increased 10.2 per cent to $1082 million as compared to the $982 million in 6M-2014.

     

    NBCUniversal 

     

    Cable Networks, Broadcast television, Filmed Entertainment and Themed Parks contribute to NBCUniversal segment’s revenues.

     

    NBCUniversal revenue in Q2-2015 at $7230 million increased 20.2 per cent as compared to the $6016 million in the corresponding year ago quarter. For 6M-2015, revenue from this segment increased 7.3 per cent to $13,834 million from $12,892 million in the corresponding year ago six month period.

     

    Operating cash flow increased 19.4 per cent to $1712 million in Q2-2015 as compared to the $1434 million in Q2-2014. During 6M-2015, operating cash flow from this segment improved 16.8 per cent to $3206 million as compared to the $2745 million in 6M-2014 driven by strong results at Filmed Entertainment and Theme Parks.

     

    Cable Networks

     

    Cable Networks revenue in Q-2015 declined 4.6 per cent to $872 million as compared to the $914 million in Q2-2014, reflecting a 26.3 per cent decrease in content licensing and other revenue due to the timing of content provided under licensing agreements and a three per cent decline in advertising revenue, partially offset by a 5.6 per cent increase in distribution revenue. Operating cash flow decreased 4.6 per cent to $872 million compared to $914 million in Q2-2014, reflecting lower revenue and modest increases in other operating and administrative expenses.

     

    For 6M-2015, revenue 2.2 per cent to $1170 million as compared to the $1809 million in 6M-2014. Operating cash flow decreased 2.2 per cent to $1.8 billion in 6M-2015.

     

    Broadcast Television

     

    Broadcast Television revenue increased 3.7 per cent in Q2-2015 to $240 million as compared to the $231 million in Q2-2014 reflecting a slight increase in advertising revenue and higher retransmission consent fees, which were offset by lower content licensing revenue. Operating cash flow decreased 3.7 per cent to $231 million compared to Q2-2014, primarily reflecting increases in other operating and administrative expenses, which were largely offset by a decrease in programming and production costs associated with the timing of the airing of certain shows in our primetime schedule.

     

    YTD, Broadcast Television revenue increased 14 per cent to $413 million as compared to $352 million in 6M-2014. Excluding $376 million of revenue generated by the NFL’s Super Bowl in the Q1-2015, as well as $846 million of revenue generated by the Sochi Olympics in Q1-2014, revenue increased 2.6 per cent. Operating cash flow increased 14 per cent to $413 million compared to $362 million in 6M-2014.

     

    Filmed Entertainment

     

    Filmed Entertainment revenue in Q2-2015 more than doubled (up 2.17 times) to $422 million as compared to the $195 million in Q2-2014 driven by higher theatrical revenue from the record performances of Furious 7 and Jurassic World. Operating cash flow increased $227 million to $422 million, reflecting higher revenue, partially offset by an increase in the amortization of film costs and higher advertising, marketing and promotion expense due to a larger film slate.

     

    For 6M-2015, revenue increased 48.1 per cent to $715 million as compared to $483 million in 6M-2014. Operating cash flow increased 48.1 per cent to $715 million compared to $483 million in 6M-2014.

     

    Themed Parks

     

    Themed Parks in Q2-2015 increased 44.9 per cent to $354 million as compared to the $244 million in Q2-2014 reflecting higher guest attendance and per capita spending, driven by the continued success of Orlando’s The Wizarding World of Harry Potter – Diagon Alley. Q2-2015 cash flow increased 44.9 per cent to $354 million compared to $244 million in the same period last year, reflecting higher revenue, partially offset by an increase in operating costs to support the new attractions.

     

    For 6M-2015, revenue increased 48.9 per cent to $616 million as compared to the $414 million in 6M-2014. Operating cash flow increased 48.9 per cent to $617 million compared to $414 million in 6M-2014.

  • Comcast to launch Internet TV service called Stream

    Comcast to launch Internet TV service called Stream

    MUMBAI: Keeping in mind the diversity in preferences of watching entertainment content, cable giant Comcast is all set to launch a streaming TV service called Stream.

     

    Comcast Cable executive vice president and general manager, video services Matt Strauss said, “The way we watch TV has become more personal than ever. I like to watch live on the big screen in my living room. My kids, on the other hand, prefer to catch up with their favorite shows on their laptops, on demand. As this diversity in preferences continues to grow, we’ve added new features and offerings to try and meet the needs of everyone who loves TV.”

     

    Comcast has previously created skinny bundles like Internet Plus and developed services that cater to students, like Xfinity on Campus. 

     

    The cable company has now launched a beta test of a new streaming cable service that furthers its goal to provide TV choices for everyone. “It’s unlike anything we’ve ever offered: no extra device or additional equipment required…or even a TV. And it’s called Stream,” Strauss said.

     

    With Stream, Xfinity Internet customers can watch live TV from about a dozen networks – including all the major broadcast nets and HBO – on laptops, tablets and phones in their home. It includes thousands of on demand movies and shows to watch home or away and even comes with access to TV Everywhere and a cloud DVR to record shows and watch later.

     

    Stream will be available to Comcast’s Xfinity Internet customers for $15 per month and will first launch in Boston at the end of the summer. The company will take it to Chicago and Seattle next, with plans to make it available everywhere in its footprint by early 2016.

     

    “We’ll continue to experiment by creating offerings like Stream, so that users can choose the service that works best for them. So if you love TV and spend most of your time with the screen in your lap as opposed to the one on the wall, Stream may just be the thing for you,” Strauss added.

  • Can the Indian cable television industry truly head the US cable television industry way?

    Can the Indian cable television industry truly head the US cable television industry way?

    People often tend to compare the cable television industry in India with that of the US. They say that the industry is headed the US way. One of the crucial points is internet service and more specifically broadband service. This business and revenue growth alternative has been gaining a lot of attention from the cable television industry as an expansion strategy. Higher Average Revenue Per User (ARPU) in India, to the extent of 3 to 5 times the ARPU earned through transmission of television bouquets, certainly makes this service an attractive proposition.

     

    Comparisons with a mature market like the US may not work in India. Indian cable television players have a long road ahead before any comparison or trying to relate with the industry, in any way could even start to make sense.

     

    One of the foremost factors is money. According to the National Cable and Television Association, USA (NCTA), the total US broadband industry investments since 1994 is about US$ 1400 billion (4.7 per cent of the US’s estimated revenue for 2014) or 60.7 per cent of India’s nominal GDP of US 2308 billion in April 2015. Money can bridge the technology gap, leapfrog it, as it has in many instances in India.

     

    Of course, this leads to the oft repeated point about the high cost of implementation of all DAS phases. It is a foregone fact that the capex starved cable television industry with poor balance sheets is going to deploy more money towards that effort if it wants the government to allow it to remain in business. Delays in deadlines may be possible, but in the current scenario, DAS is there to stay and is required for the benefit of all stakeholders.

     

    Notwithstanding the bureaucracy logjam that India is notorious for, another major stumbling block is the slow and hugely over vamped judicial system (besides regulation) in India that could take years to decide on any dispute. Settling of civil disputes has no deadline in India. The cliché, for businesses, ‘time is money’, holds good here too.

     

    Let us look at internet services

     

    The number of internet users worldwide will surpass 3 billion (300 crore) in 2015, according to eMarketer, increasing 6.2 per cent next year to reach 42.4 per cent of the entire world’s population. By 2018, eMarketer estimates, nearly half the world’s population, or 360 crore people, will access the internet at least once each month.  

     

    eMarketer says that by 2016 India will jump the US as the second-largest internet user population. China leads the world in terms of number of internet users with estimated 66.98 crore users, followed by the US with 25.93 crore and India with 24.23 crore say eMarketer estimates. In 2016, the publication estimates an Indian internet user base of 28.38 crore, higher than the 26.49 crore projections for the US. By 2018, India’s estimated internet subscriber base will be 34.63 crore or probably in the range of about 25-28 per cent of the population of the country at that time. Indian population figures for 2013 are an estimated 125.2 crore. Current population estimates for the US are about 32 crore, or the US has an internet density percentage of about 80, while China’s internet density percentage is about 50 and India just under 20.

     

    “Inexpensive mobile phones and mobile broadband connections are driving internet access and usage in countries where fixed internet has been out of reach for consumers, whether that’s due to lack of infrastructure or affordability,” said eMarketer senior forecasting analyst  Monica Peart. “While highly developed markets are nearly saturated in terms of internet users, there’s significant room for growth in emerging ones; for example, India and Indonesia will both see double-digit growth in each year between now and 2018.”

     

    The growing youth population is another important driver, as the most technologically savvy, and their demands shape internet development itself, says a Euromonitor report.

     

    According to the Telecom Regulatory Authority of India (TRAI), India had a wireline broadband subscriber base (speed greater than 512 kpbs) of 155.2 lakh and 852.3 lakh wireless broadband subscribers as on 30 April, 2015 or 1007.6 lakh broadband subscribers totally. This means that less than 1 per cent of the total population of the country has broadband. There is no denying the fact that the potential is huge, more so for broadband.

     

    Siti Cable (Siti), a multi system operator (MSO), believes that its strategy of cross-selling broadband services to its existing cable television subscribers and new customers will provide it with an opportunity to increase ARPUs, increase retention rates, ensure higher sustainable EBITDA margins and leverage upon its existing pan India presence.

     

    A few players such as medium sized MSO Atria Convergence Technologies (ACT) had actually changed its strategy since 2012 and started focusing more on broadband services, without losing focus on its MSO operations. It offers broadband internet in areas where it does not have cable subscribers. Despite being a regional player, ACT is the second largest private wired broadband player in the country, just after the mobile telecom behemoth Airtel. ACT’s broadband subscriber base has grown by 43.76 per cent to 6.11 lakh in the 12 months until 31December, 2014. As on 30 April, 2015, ACT had a wired broadband subscriber base of 6.8 lakh.

     

    However, ACT has followed a different strategy when compared to the other MSOs who use DOCSIS on the existing television cable for internet delivery. The company has laid separate optic fibre lines for internet delivery and hence owns even the last mile, rather than use its existing cable infrastructure and be dependent upon the LCOs’ whims and fancies.

     

    It must also be noted that the number of internet subscribers that each major cable television player in the US has runs in crores in a couple of cases. The largest MSO in India in terms of cable subscribers – Den Networks, with about 130 lakh subscribers has less than half the customer relationships that Comcast’s Cable Communications segment has with 272.34 lakh subscribers, of which about 223.75 lakh are video subscribers and 223.69 lakh are high speed internet subscribers. While Den’s cable subscriber base is about 58 per cent of Comcast Cable Communications segment, its internet subscriber base as on 31 March, 2015, is a small fraction at just 23,000 or just a little more than one thousandth of the internet subscribers that Comcast has. Even, ACT’s internet subscriber base of about 7 lakh is less than one-thirtieth of Comcast’s Cable Communications High-Speed internet subscribers. Is there any comparison?

     

    According to Nielsen’s 2015 Advance National TV Household Universe Estimate (UE), there are 11.64 crore TV homes in the U.S. prior to the start of the 2014-15 TV season. The number of homes represents a 0.5 per cent increase from Nielsen’s 2013-14 TV Household Universe Estimate. The number of persons aged 2 and older in U.S. TV Households is estimated to be 29.6 crore—also an increase of 0.5 per cent from last year. This puts the number of subscribers in the previous year as per Nielsen’s estimates at 11.58 crore.  The Indian carriage universe has 16.8 crore homes (44.3 per cent more than the estimated US TV homes) according to the FICCI- KPMG Indian Media and Entertainment Industry Report 2015. (FICCI-M&E 2015 report).

     

    The number of video subscribers through wire in the US as of 2013 was about 6.6 crore or the country had a cabletelevision percentage density just under 21. India has a TV home (TV Households or TV HH) density percentage of a little less than 13.5 (this includes DTH for India).

     

    Besides a number of cable television and IPTV service providers, the US has two big DTH players – Dish and Directv that had a combined subscriber base in Q1-2015 of approximately 341 lakh, or about 29 per cent of the total TV homes in the US estimated by Nielsen. India had an active DTH subscriber base of about 405.4 lakh (24.3 per cent of TV HH in India) as on 31 December, 2014.

     

     As mentioned above, in India, internet services ARPU is much higher than the ARPU from cable television services as compared to more mature markets such as the US, where it is the other way around. At the time of writing of this report, internet services monthly ARPU could be between 50 to 65 per cent of the video monthly ARPUs’ in the US. Video monthly ARPU would typically be in the range of US$ 75 to US$ 95, while internet monthly ARPU would range between US$ 40 to US$ 50. Is there an ARPU comparison? No way!

     

    Let us look at three players in the US. The entities in this report – Comcast Corporation’s Cable Communications segment, Time Warner Cable (TWC, about half the size of Comcast Cable Communications segment) and Charter Communications (Charter Comm) (About half the size again of TWC) represent about 32 per cent of the total US TV homes estimated by Nielsen.

     

    In Q1-2015, these entities combined video subscribers dropped by 6.12 lakh (1.61 per cent) to 373.47 lakh (32.09 per cent of Nielsen’s estimated TV Homes) from 379.59 lakh (32.77 per cent of Nielsen’s estimated TV Homes) in Q1-2014. Individually too, all the three entities reported loss of video subscribers in Q1-2015 to the extent of 1 per cent in the case of Comcast and Charter Comm and 3.08 per cent in the case of TWC, as compared to the corresponding year ago quarter. Despite the drop in video subscribers, the other two reported an increase in revenue from video in Q1-2015, while TWC even saw its video revenues drop by 1.04 per cent in Q1-2015 as compared to Q1-2014.

     

    The total number of internet subscribers of these three entities exceeded the total number of video subscribers in Q1-2015– internet subscribers grew to 392.5 lakh (5.1 per cent more than video subscribers) as compared to 369.45 crore (2.67 per cent less than video subscribers) in Q1-2014. All the three players reported increases in their internet subscription base as well as revenue from Internet in Q1-2015 when compared to the year ago quarter.

     

    Triple play (or triple product) subscribers increased in all the three cases, between 0.61 per cent in the case of Charter Comm to 14.49 per cent in the case of TWC and 4.26 per cent in the case of Comcast in Q1-2015 when compared to Q1-2014. TWC and Charter Comm’s double play subscriber base shrank 8.05 per cent and 0.6 per cent respectively, while Comcast’s double play subscription numbers increased in comparison during similar periods.

     

    Notes: (1) 100,00,000 = 100 lakh = 10 million = 1 crore

     

    (2) Revenues for US companies and some figures in this report have been mentioned in US$, million; subscription numbers in lakh or crore and TV homes in crore.

     

    (2) SARPU, a term similar to ARPU has been coined by the writer to bring terms to a common denominator for all the three US entities. To arrive at SARPU, the writer has added the quarterly revenues from each stream and divided the result by the number of customer relationships in that quarter and further divided the second result by 3 to arrive at a rough estimate of the revenue earned per relationship per month by the entity. Similarly, individual revenues from video, internet and voice streams/business have been divided by the number of subscribers of video, internet and voice streams respectively, further divided by 3 to arrive at an SARPU of that stream. Residential subscriber numbers have been used wherever available.

     

    (2.1) VIVE, another term coined by the writer, means video, internet and voice, the three main revenue generating streams or businesses for the three US entities in this report.

     

    (3) Voice numbers has been included, since there are number of overlaps in subscription numbers for VIVE of all the three entities.

     

    (4) ARPUs’ and SARPUs’ in this report are on a monthly basis unless stated otherwise.

     

    Comcast Cable Communications segment

     

    Comcast’s Cable Communications segment’s (probably the largest cable company and home internet services provider in the US) comprises 272.34 lakh relationships in Q1-2015 (quarter ended 31 March, 2015). The number grew by just 1.62 per cent from the 268 lakh in Q1-2014, and was driven by increases in double and triple product relationships.  This is what the cable industry in India is trying to ape – the double and triple play numbers.

     

    The breakup of these customers is 83.99 lakh single product, 2.39 per cent lower than the 86.05 lakh in Q1-2014; 88.90 lakh double product, 2.7 per cent more than the 86.56 lakh double product consumers in Q1-2014 and 99.45 lakh triple product consumers, 4.26 per cent more than the 95.39 lakh in  Q1-2014.

     

    The breakup of number of Comcast’s cable operations customers base on products is 223.75 lakh of video consumers in Q1-2015 – the number fell by 8000 as compared to the corresponding year ago quarter; 223.69 lakh high-speed internet consumers – the number increased by 4.07 lakh as compared to Q1-2014; and 112.70 lakh voices consumers – the number increased by 77000 as compared to the previous year ago quarter.

     

    Based on the financials filed by the company for Q1-2015, 69.16 per cent of the company’s consumers’ use two (double play) or more of its products, (up 127 basis points or 1.87 per cent higher) than the 67.89 per cent in Q1-2014.

     

    Let us examine the revenue that these businesses bring in for the company:

     

    Comcast’s Cable Communications segment revenue in Q1-2015 grew 6.26 per cent to US$ 11430 million from US$ 10757 million in Q1-2014. Combined revenue from Video, Internet and Voice (VIVE) businesses in Q1-2015 grew 4.89 per cent to US$ 9281 million (81.20 per cent of Cable Communications segment revenue) from US$ 8848 million (82.25 per cent Cable Communications segment revenue) in Q1-2014.

     

    Video revenue in Q1-2015 was US$ 5331million (57.44 per cent of VIVE revenue), 2.95 per cent more than the Rs 5178 million (58.52 per cent of VIVE revenue) in Q1-2014; Internet revenue in Q1-2015 grew 10.69 per cent to US$ 3044 million (32.80 per cent of VIVE) from US$ 2750 million (31.08 per cent of VIVE) in Q1-2014. Voice revenue fell 1.52 per cent in Q1-2015 to US$ 906 million (9.6 per cent of VIVE revenue) from US$ 920 million (10.4 per cent of VIVE revenue) in Q1-2014.

     

    A simple back of the envelope calculation as mentioned in Note 2 above shows the simple average monthly revenue per user (SARPU) of US$ 113.60 for Q1-2015, up 3.22 per cent as compared to the US$ 110.05 in Q1-2014.

     

    Similarly, Video SARPU grew 3.99 per cent in Q1-2015 to US$ 79.42 from US$ 76.37 in Q1-2014; Internet services SARPU grew 4.25 per cent to US$ 45.36 (56.97 per cent of video SARPU) in Q1-2015 from US$ 43.51 (57.12 per cent of video SARPU) in Q1-2014; Voice SARPU fell 5.06 per cent to US$ 26.80 from US$ 28.23 in the year ago quarter.

     

    Time Warner Cable

     

    Let us see how another big player in the US performed – Time Warner Cable (TWC).  In Q1-2015 the company saw its highest q-o-q growth in internet subscriber base since 2007 by 3.15 lakh to 119.90 lakh from 116.75 lakh in the quarter ended 31 December, 2014. Y-o-y, the company’s internet subscriber base grew by 6.32 lakh. However, the company’s video subscribers fell 3.08 per cent in Q1-2015 to 108.19 lakh from 111.63 lakh in Q1-2014. Voice subscribers increased 14.06 per cent in Q1-2015 to 56.04 lakh from 49.13 lakh in Q1-2014. TWC’s customer relationships increased 1.27 per cent in Q1-2015 to 147.16 lakh from 145.32 lakh in Q1-2014.

     

    In Q1-2015, the number of consumers using TWC’s double or triple play increased by 64 basis points (up 1.05 per cent) to 61.45 per cent from 60.81 per cent.

     

    TWC’s overall revenue in Q1-2015 grew 2.06 percent to US$ 4662 million from US$ 4568 million in Q1-2014. Its VIVE revenue in Q1-2015 grew 1.96 per cent to US$ 4638 million (99.49 per cent of overall revenue) from US$ 4549 million (99.58 per cent of overall revenue) in Q1-2014.

     

    Video revenue fell 1.04 per cent in Q1-2015 to US$ 2469 million (53.23 per cent of VIVE revenue) from US 2495 million (54.85 per cent of VIVE revenue); Internet revenue grew 8.86 per cent to US$ 1696 million (36.57 per cent of VIVE revenue) in Q1-2015 from US$ 1558 million (34.25 per cent of VIVE revenue) in Q1-2014. Voice revenue in Q1-2015 fell 4.64 per cent to US$ 473 million (10.2 per cent of VIVE revenue) from US$ 496 million (10.9 per cent of VIVE revenue).

     

    TWC’s SARPU per customer relationship was US$ 105.06 in Q1-2015 or 0.68 per cent higher than the US$ 104.34 in Q1-2014.

     

    TWC’s video SARPU in Q1-2015 increased 2.1 per cent to US$ 76.07 from US$ 74.50 in Q1-2014; Internet SARPU increased 3.12 per cent to US$ 47.15 (61.98 per cent of video SARPU) in Q1-2015 from US$ 45.72 (61.37 per cent of SARPU) in Q1-2014 and Voice SARPU fell 16.4 per cent in Q1-2015 to US$ 28.13 from US$ 33.65 in Q4-2014.

     

    Charter Communications

     

    Charter Communications (Charter Com), an even smaller player than Comcast or TWC, reported 4.48 per cent growth in residential consumer relationships in Q1-2015 to 59.27 lakh from 56.73 lakh in Q1-2014. Video subscription base fell 1 per cent to 41.53 lakh (70.07 per cent of total relationships) from 41.95 lakh (73.95 per cent of total relationships) in Q1-2014; Internet subscription base grew in Q1-2015 by 8.23 per cent to 48.91 lakh (82.52 per cent of total relationships, addition of 3.23 lakh subscribers) from 45.91 lakh (79.66 per cent of total relationships) in Q1-2014; Voice subscribers grew 6.71 per cent in Q1-2015 to 24.81 lakh (59.74 per cent of total relationships) from 56.93 lakh (40.98 per cent of total relationships) in the corresponding year ago quarter.

     

    Overall revenue grew 7.27 per cent to US$ 2362 million in Q1-2015 from US$ 2202 million in Q1-2014. VIVE revenue in Q1-2015 grew 6.68 per cent to US$ 1980 million (83.83 per cent of overall revenue) from US$ 1856 million (84.29 per cent of overall revenue).

     

    Video revenue increased 3.58 per cent in Q1-2015 to US$ 1129 million (53.23 per cent of VIVE revenue) from US$ 1090 million (54.85 per cent of VIVE revenue) in Q1-2014; Internet revenue increased 16.4 per cent to US$ 717 million (36.21 per cent of VIVE revenue) in Q1-2015 from US$ 616 million (33.19 per cent of VIVE revenue) in Q1-2014. Voice revenue in Q1-2015 fell 10.67 per cent to US$ 134 million (6.77 per cent of VIVE revenue) from US$ 150 million (8.08 per cent of VIVE revenue) in Q1-2014.

     

    Charter Comm’s SARPU in Q1-2015 increased 2.11 per cent to US$ 111.35 from US$ 109.05 in Q1-2014. Video SARPU increased 4.63 per cent to US$ 90.62 in Q1-2015 from US$ 86.61 in the corresponding year ago quarter; Internet SARPU in Q1-2015 increased 7.54 per cent to US$ 48.87 (53.92 per cent of video SARPU) from US$ 45.44 (52.46 per cent of video SARPU) in Q1-2014; Voice SARPU fell 16.28 per cent in Q1-2015 to US$ 18 from US$ 21.51 in Q1-2014.

     

    Let us see what the richest Indian does through Reliance Jio Media, for this is probably the only group/entity that has the deep pockets to really offer a shimmer of comparison with the media giants in the US.

     

    Can we truly compare Cable television internet in India with the industry in the US? No way!

  • Comcast founder Ralph Roberts dies at 95

    Comcast founder Ralph Roberts dies at 95

    MUMBAI: Ralph J. Roberts, the cable television pioneer, who founded Comcast Corporation died of natural causes last night in Philadelphia, PA. He was 95.

     

    Roberts served as chairman emeritus of Comcast, which is now the parent company of NBCUniversal.

     

    Comcast said in a statement, “Ralph was a born entrepreneur, a visionary businessman, a philanthropist and a wonderful human being. Ralph built Comcast into one of America’s greatest companies and his vision and spirit have been at the heart of Comcast and our culture for 50 years. He will be truly missed. Ralph’s greatest love was his family, and our deepest sympathies go to his wife Suzanne and the entire Roberts family.”

     

    Time Warner Cable chairman and CEO Rob Marcus said, “Ralph Roberts was a pioneer, a visionary and a role model. He exemplified the value of working hard and treating others with kindness and respect. His influence has extended far beyond Comcast and Cable. His life’s work, and the legacy he leaves, helped shape the way consumers use content today and how they communicate with one another. On behalf of everyone at Time Warner Cable, I send our sympathy and love to Ralph’s family and to everyone at Comcast.”

     

    Roberts was a born entrepreneur, great American businessman and philanthropist, who played a key role in the development of the cable television business. He founded Comcast in 1963 with the purchase of a 1,200-subscriber cable system in Tupelo, Mississippi. He grew the company from its humble roots as a small, regional cable company into the global Fortune 50 media and technology leader it is today.

     

    During his more than five decades at Comcast, Roberts became one of the most well-regarded executives in America. He was widely respected and admired for his visionary leadership and spirit, his passion for the business and his deep sense of integrity and courtesy. Most importantly, he was a kind and humble man who has been the heart and soul of Comcast for over 50 years.

     

    Roberts is survived by Suzanne Roberts, his wife of over 70 years. An actress, director and host of Seeking Solutions with Suzanne, Suzanne has spent a lifetime seeking to help others.

     

    In addition to his wife, Roberts is survived by four of his children and their spouses: Catherine R. Clifton and Anthony A. Clifton, Lisa S. Roberts and David Seltzer, Ralph Roberts Jr. and Kim Roberts, Brian L. Roberts and Aileen K. Roberts and Diane Roberts, widow of Ralph and Suzanne’s son Douglas Roberts, who passed away in September 2011. He is also survived by his eight grandchildren.

  • Comcast inks long-term interconnect deal with Level 3 Communications

    Comcast inks long-term interconnect deal with Level 3 Communications

    MUMBAI: Comcast and Level 3 Communications have reached a new multi-year, bilateral interconnection agreement as part of a multifaceted arrangement that will help both companies meet their customers’ needs into the next decade and beyond.

     

    The new arrangement builds on the strong working relationship between Comcast and Level 3, and expands on the agreements already in place between the two companies.

     

    “We are delighted to strengthen our relationship with Level 3. Today’s announcement reflects the important ways in which network participants exchange value in an innovative marketplace. We place great value on our relationships with network partners like Level 3 and are continually seeking mutually beneficial, market-driven agreements that enhance value throughout the network,” said Comcast Cable chief network officer John Schanz.

     

    “We believe the agreement will benefit Level 3’s and Comcast’s customers for years to come. Our companies share the goal of enabling a growing, secure and resilient interconnection environment,” said Level 3 chief technology officer Jack Waters.

     

    Under the terms of the agreement, Comcast and Level 3 will enhance their existing network capacity while extending their mutual interconnection agreements, ensuring that both maintain ample capacity to exchange Internet traffic between their networks. The agreement covers both companies’ existing networks as well as any expansion that may occur during the term of the agreement.