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

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

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

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

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

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

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

    Subscription numbers, revenues

    Please refer to Figures A1 and A2 below.

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

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

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

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

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

    Comcast Cable Communications (Comcast CCS)

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

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

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

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

    Time Warner Cable (TWC)

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

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

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

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

    Charter Communications (Charter)

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

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

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

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

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

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

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

    Business Services Revenue (BSR)

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

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

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

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

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

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

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

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

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

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

    Subscription numbers, revenues

    Please refer to Figures A1 and A2 below.

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

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

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

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

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

    Comcast Cable Communications (Comcast CCS)

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

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

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

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

    Time Warner Cable (TWC)

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

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

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

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

    Charter Communications (Charter)

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

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

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

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

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

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

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

    Business Services Revenue (BSR)

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

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

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

  • Q3-2015: US cable industry video slide continues; ARPU rises

    Q3-2015: US cable industry video slide continues; ARPU rises

    BENGALURU: Like in the previous two quarters and even earlier, the cable industry in the US continues to bleed video subscribers, albeit slower than before, while internet and business services (BS) continue to be growth drivers in terms of subscription numbers and revenue in the quarter ended 30 September, 2015 (current quarter, Q3-2015). This report considers three players for Q3-2015 – Comcast Cable Communications segment, Time Warner Cable and Charter Communications. Overall, YoY and QoQ subscription numbers or customer relationships of the three players in this report have increased, despite a fall in video customers.

    Comcast Inc., Cable Communications segment is the largest player by far among the sample players in this report; Time Warner Cable, Inc., (TWC), is a little less than 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 TWC’s.

    Despite the continued slide in video customer relationship, the combined sum of video subscribers in Q2-2015 of the three entities was about 3.72 crore or almost two thirds (61.4 per cent) of the 6.6 crore video subscribers through wire in the US as of 2013 numbers. The three players in this report are generally considered amongst the biggest players in the US cable television industry. All have three major revenue streams – Video, Internet and Voice (VIVE).

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

    (b) While denominations for US$ have been mentioned in millions or billions where applicable, denominations for numbers have been mentioned lakhs and crores.

    (c) 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.

    (d) The results and the conclusions in this report may not necessarily reflect the true trends and nature of the cable communications industry in US.

    Performance in Q3-2015

    In general, six streams add to most of the three entities’ revenue – three products – Video, high speed Internet, Voice; Business Services (BS); Advertising; and Other. Collectively, the first three have been given the acronym VIVE by the author. Generally VIVE numbers, be they subscription or revenue indicate residential subscribers and revenue from these subscribers in this report. This report examines VIVE and touches briefly upon BS of some of the players later on. It must be noted that BS revenue exceeds revenue from Voice services, but since voice is one of the three limbs of triple play, it has been mentioned along with Video and Internet.

    As mentioned above, in general, Internet has been driving growth, both in terms of revenue and subscription numbers. Contribution by BS is growing and is in low double digits in terms of percentage of overall revenue. Historically, over the previous two years, video revenues in Q3 of a year drop QoQ, before increasing in Q4 again. This has also happened in the current quarter Q3-2015. Due to the drop in video revenues, combined VIVE revenue has dropped QoQ in Q3-2015.

    Overall combined subscription numbers in Q3-2015 increased 0.82 per cent (increased by 397,000) QoQ to 485.52 lakh and increased by 2.78 per cent (increased by 1,315,000) YoY from 472.37 lakh. QoQ growth was driven by a growth in internet and voice subscribers and partly offset by a decline, albeit at a much lower rate, of video subscribers.

    In the current quarter combined Video Subscribers declined 0. 12 per cent QoQ to 371.57 lakh from 372 lakh and declined by 0.54 per cent YoY from 373.60 lakh. Combined high speed data subscribers in the current quarter increased 1.72 per cent QoQ to 403.54 lakh from 396.71 lakh and increased 6.88 per cent YoY from 377.55 lakh. Combined Voice subscribers in Q3-2015 increased 1.48 per cent QoQ to 199.80 lakh from 196.89 lakh and increased 8.30 per cent YoY from 184.48 lakh.

    The combined overall revenue (OR) of the three players in Q3-2015 increased 0.13 per cent (increased by $27 million) QoQ to $20,112 million from $20,085 million and increased 5.62 per cent (increased by $1070 million) YoY from $19,042 million. Please refer to Fig A2 below.

    Combined VIVE revenue in the current quarter declined 0.74 per cent (declined by $120 million) QoQ to $16,075 million from $16,195 million, but increased 4.2 per cent (increased by $648 million) YoY from $15,427 million. Video revenues of all the three players declined in this quarter as compared to the previous quarter. Internet revenues of all the three players increased, while Voice revenue of Comcast Cable Communications Segment and Charter increased. Voice revenue in the case of TWC declined QoQ in Q3-2015.

    Average Revenue Per User (ARPU) continued to rise as is evident from Figure A3 below, with Comcast Cable Communications ARPU at $143.12 in Q3-2015 being about 13 per cent higher than TWC’s ARPU of $126.92 and about 26 per cent more than Charter Communications ARPU of $113.39. This huge discrepancy reflects the fact that Comcast has a much higher proportion of multi-play (triple play and double play) customers when compared to the other two players. Please refer to Figure A4 below. While Comcast Cable Communications segment (A4-1 below) had about 31 per cent of single play customers, and 69 per cent multi-play (33 per cent of double play and 36 per cent triple play) customers in Q3-2015, in the case of the other two players (A4-2 and A4-3 below), single play customers totalled about 39 per cent and multi-play customers around 61 per cent.

    Business Services Revenue

    Combined Business Services Revenue (BSR) of the three entities increased 3.93 per cent QoQ to $2,330 million (11.59 per cent of combined Overall Revenue or combined OR) from $2,242 million (11.16 per cent of combined OR) and increased 17.20 per cent YoY from $1,988 million (10.44 per cent of combined OR). As has been mentioned, contribution by BSR to OR has been increasing – Combined BSR share of combined OR in Q2-14 was 9.99 per cent, in Q3-2015 it was 11.59 per cent.

    Please refer to figure B below. BSR has been increasing in absolute dollars as well as by way of contribution to OR. Amongst the three players in this report, BSR contribution has been the highest in terms of percentage of overall revenues in the case of TWC over the past six consecutive quarters considered in this report. Even in the case of Comcast Cable Communications segment, which had the highest BSR in terms of absolute dollars, BSR’s contribution has entered into double digits in terms of percentage of OR in the current quarter. While Comcast Cable Communications Segment break-up of residential and BSR subscription numbers is not available, Figure B1 below clearly indicates that TWC and Charter BSR subscription numbers have been increasing over time. 

  • Q2-2015: US Cable industry: Internet, biz services continue as growth drivers; video continues to lose subscribers

    Q2-2015: US Cable industry: Internet, biz services continue as growth drivers; video continues to lose subscribers

    BENGALURU: The cable industry in the US continues to bleed video subscribers, albeit slower than earlier, while internet and business services continue to be growth drivers in terms of subscription numbers and revenue, if one were to go by the results reported by five major players in the US for the quarter ended 30 June, 2015 (Q2-2015). Overall, YoY and QoQ subscription numbers or customer relationships of the bigger three of the five players in this report have increased.

    The five players in this report are Comcast Inc., Cable Communications segment, the largest player by far among the sample players in this report; Time Warner Cable, Inc., (TWC), a little less than half the size of Comcast’s Cable communications segment in terms of revenue; Charter Communications with revenues that are less than half again as TWC’s. Cablevision, the fourth player in the sample had a little more than two-thirds of Charter’s revenues in Q2-2015, while the smallest, Suddenlink whose major operating areas includeArizona, Arkansas, Louisiana, North Carolina, Oklahoma, Texas, West Virginia, had revenue that was a little more than a third of Cablevision’s revenue in Q2-2015.  

    Despite the continued slide in video customer relationship, the combined sum of video subscribers in Q2-2015 of the five entities is about 4.09 crore or almost two thirds (62 per cent) of the 6.6 crore video subscribers through wire in the US as of 2013. The five players in this report are generally considered amongst the biggest players in the US cable television industry. All have three major revenue streams – Video, Internet and Voice (VIVE).

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

    (b) While denominations for $have been mentioned in millions or billions where applicable, denominations for numbers have been mentioned lakhs and crores.

    (c)Residential customer relationship numbers have been used in this report wherever the breakup has been mentioned in SEC filings by the concerned entity.

    (d) The results and the conclusions in this report may not necessarily reflect the true trends and nature of the cablecommunications industry in US.

    It is noteworthy that an even smaller company, Mediacom Broadband alone, without Mediacom LLC numbers, had revenue of about $246 million (Rs 1626.53 crore, ($1 = Rs 63.5363 as on 30 June, 2015) in Q2-2015, many times more than the revenue generated by the largest cable company in India. Mediacom Broadband’s revenue was less than half $608.02 million revenue reported by Suddenlink in Q2-2015.

    Performance in Q2-2015

    In general, six streams add to most of the five entities’ revenue – three products -Video, high speed Internet, Voice; Business Services (BS); Advertising; and Other. Collectively, the first three have been given the acronym VIVE by the author. Generally VIVE numbers, be they subscription or revenue indicate residential subscribers and revenue from these subscribers in this report. Some of the companies don’t indicate the breakup of VIVE revenue from business services, and hence these figures could be included in the overall VIVE revenue .This reports examines VIVE and touches briefly upon business services of some of the players in this report later on.

    In general, Internet has been driving growth, both in terms of revenue and subscription numbers. Contribution by business services is growing and is in the sub or low double digits in terms of percentage of overall revenue.

    Subscription numbers in Q2-2015

    Figure A below displays the subscription numbers of the five players considered in this report. Individual as well as combined Video subscribers or Video customer relationships have dropped year-on-year (YoY) and quarter-on-quarter (QoQ) during Q2-2015. Internet subscription numbers of all the five players in this report have increased, while Voice subscription numbers of four of the five companies have gone up. Cablevision has reported a small dip in Voice subscription numbers in Q2-2015.

    YoY and QoQ combined Total Customer Relationships of all the five players have gone up in Q2-2015 by 2.03 per cent and 0.24 per cent respectively. In Q2-2015, the combined Total Customer Relationships of all the five companies was 525.64 lakh as compared to 515.19 lakh in Q2-2014 and 524.41 lakh in Q1-2015. Though QoQ customer relationships of all the five companies have gone up, in the case of Cablevision and Suddenlink, customer relationships were actually lower in Q2-2015. Cablevision saw a decline 1.52 per cent in Q2-2015 to 31.17 lakh as compared to the 31.65 lakh in Q2-2014, while Suddenlink saw a QoQ decline of 0.86 per cent to 14.39 lakh in Q2-2015 from 14.52 lakh.

    Video

    As mentioned above, the US Cable communications industry continues to lose video customers. YoY, the combined Total Customer Relationships declined 1.53 per cent to 409.40 lakh in Q2-2015 as compared to the 415.74 lakh. QoQ the decline was 0.47 per cent from 411.32 lakh. Suddenlink saw the highest YoY drop among the five players in this report in Video subscribers at 5.66 per cent (lost 66200 subscribers) to 11.03 lakh in the current quarter as compared to 11.69 lakh in Q2-2014. Suddenlink’s YoY decline in Video customers was also the steepest among the five companies at 2.6 per cent (lost 29400 subscribers) from 11.32 lakh in Q1-2015. 

    In absolute numbers, TWC had the highest YoY decline of video subscribers among the five players in the current quarter of 2.27 lakh to 107.74 lakh from 110.11 lakh. QoQ, Comcast’s Cable communications has seen the largest fall in absolute numbers among the 5 companies, a fall of 69,000 (0.31 per cent) Video subscribers in Q2-2015 to 223.06 lakh from 223.75 lakh in the immediate trailing quarter.

    Internet

    Overall, the five entities reported a 6.07 per cent YoY increase in Internet subscribers in Q2-2015 at a combined total of 436.33 lakh from 411.36 lakh in the corresponding year ago quarter and a one per cent increase from 432.01 lakh in the immediate trailing quarter. The five entities gained 24.965 lakh subscribers YoY and 4.322 lakh subscribers QoQ in Q2-2015. As is obvious, the number of internet subscribers exceeds the number of video subscribers.

    All the five companies in this report witnessed a YoY increase in Internet subscribers. Charter had highest growth in percentage terms at 8.6 per cent ( gained 3.93 lakh subscribers) increase in Internet subscription in Q2-2015 with the subscriber base reaching 49.61 lakh from 45.68 lakh in the corresponding year ago quarter and 1.43 per cent higher (gained 70000 subscribers) QoQ from 48.91 lakh. 

    QoQ, both TWC (gained 7.47 lakh subscribers) and Charter reported 1.43 per cent growth in Q2-2015, while Comcast and Cablevsion reported 0.80 (gained 1.79 lakh subscribers) and 0.51 growth (gained 14000 subscribers) in Internet subscribers. Suddenlink reported a slight QoQ decline of 0.24 per cent (lost 2800 subscribers) to 11.81 lakh in the current quarter as compared to the 11.84 lakh in the immediate trailing quarter.

    In absolute numbers, Comcast Cable Communications reported the highest YoY and QoQ Internet subscription growth among the five companies in Q2-2015 at 12.77 lakh (six per cent) and 1.79 lakh (0.80 per cent) respectively.

    Voice

    The five entities reported a 6.19 per cent YoY growth and a 1.48 per cent QoQ growth in combined Total Voice Subscriber base of 224.55 lakh in Q2-2015. This translates to a YoY increase of 13.092 lakh and QoQ increase of 3.275 lakh subscribers in absolute numbers.

    Except for Cablevision, the other four players reported YoY and QoQ increase in subscription numbers. Cablevison reported a YoY decline of 2.86 per cent (65000) and a QoQ decline of 0.32 per cent (7000) in Voice Subscribers in Q2-2015 to 22.08 lakh from 22.73 lakh in Q2-2014 and from 22.15 lakh in Q1-2015 respectively.

    The highest YoY growth in Voice subscribers among the five players in this report in Q2-2015 in percentage as well as absolute numbers was 17.71 per cent and 8.81 lakh by TWC, which saw its numbers grow to 58.56 lakh from 47.75 crore in Q2-2014. TWC also reported the highest QoQ growth in percentage and absolute terms in Voice subscribers among the five players by 4.5 per cent and 2.52 lakh to 58.56 lakh in Q2-2015.

    Single, double and triple play numbers

    Four of the five players have indicated the breakup of their single, double and triple play customer relationships.

    Generally, all have been losing single play and double play subscribers either because of conversion from single to double or triple play, or from double to triple play, or because of subscriber churn, while Suddnelink has also reported numbers than indicate growth in its non-video customer relationships.

    Revenue numbers in Q2-2015

    Please refer to Fig A1 below. Combined Total revenue of all the five players in this report increased YoY 2.46 per cent ($517 million) to $21566 million from $21049 million in Q2-2014, but declined 0.2 per cent ($43 million) from $21609 million in Q1-2015. Charter saw the largest YoY increase of total revenue in percentage terms among the five at 7.57 per cent ($171 million) in Q2-2014. In absolute numbers, Comcast Cable Communications segment reported the highest YoY growth of total revenue of $700 million (6.35 per cent) and QoQ growth of $399 million (2.62 per cent) in the current quarter. QoQ, Suddenlink saw the highest growth in Total revenue among the 5 players in percentage terms of 3.36 per cent ($28 million) in Q2-2015.

    Combined YoY and QoQ VIVE revenues of all the five entities increased 5.15 per cent ($890 million) and 1.43 per cent ($257 million) respectively in Q2-2015$ 18170 million. Here also, Charter reported the highest YoY growth in percentage terms of VIVE revenue of 7.07 per cent ($134 million) in Q2-2015. QoQ, Suddenlink reported the highest growth among the five players in percentage terms at 3.49 per cent ($31 million) in the current quarter.

    As far as absolute US dollars are concerned, Comcast’s Cable Communications segment reported the highest YoY and QoQ growth at $455 million (5.07 per cent) and $154 million (1.66 per cent) respectively in Q2-2015.

    Among the three products, Video was the biggest contributor to revenue of all the five companies in this report. Video’s contribution to VIVE revenue was in the range of 50 to 60 per cent. Internet contributed between 25 and 35 per cent and Voice between 6 to 17 per cent to VIVE revenue.

    YoY, combined Total Video and combined Total Internet revenue increased by 2.04 per cent and 13.22 per cent respectively, while Voice revenue declined by 1.89 per cent. QoQ, Video, Internet and Voice revenue in Q2-2015 increased by 1.08 per cent, 2.41 per cent and 0.15 per cent respectively.

    Video

    Despite a drop in Video Customer Relationships, combined Total Video revenue YoY increased by $204 million and increased QoQ by $109 million to $10198 million in Q2-2015. The highest increase in Video revenue among the five players was by Comcast at 3.66 per cent and $192 million in Q2-2015, while Suddenlink saw its Video Revenue drop by 0.68 per cent and $2 million in Q2-2015.

    Internet

    Combined Internet revenue of the five players in this report increased by 13.22 per cent and $720 million YoY and increased QoQ by 2.41 per cent and $145 million to $$6171.4 million in Q2-2015.

    The highest YoY as well as QoQ growth in percentage terms of Internet revenue among the five players was by Suddenlnk with 17.07 per cent ($31 million) and 4.40 per cent ($9 million) respectively in the current quarter. In absolute US dollar terms, Comcast Cableshowed the highest YoY and QoQ growth at $282 million (10 per cent) and $57 million (1.87 per cent) respectively.

    Voice

    Though Voice subscription numbers have been growing, the combined Voice revenue of the 5 players declined YoY by 1.89 per cent ($35 million) to $1800 million. The combined voice revenue of the players increased marginally QoQ by 0.15 per cent ($3 million) in the current quarter. 

    The big three players – Comcast Cable Communications, TWC and Charter saw their YoY Voice revenue decline by 2.06 per cent ($19 million), 2.45 per cent ($12 million) and 6.9 per cent ($10 million) respectively. Cablevision and Suddenlink saw their YoY Voice revenue increase by 2.2 per cent ($5 million) and 2.53 per cent ($1 million) respectively.

    Comcast Cable Communications and Suddenlink saw their QoQ Voice revenues drop 0.33 per cent ($3 million) and 0.48 per cent ($0.25 million) in the current quarter, while TWC and Charter saw their YoY Voice revenues increase by 1.06 per cent ($5 million) and 0.75 per cent (one million) respectively . Cablevision’s Voice revenue remained flat in Q1-2015 and Q2-2015 at $232 million.

    Comcast Cable, TWC and Charter have indicated business services revenue in their quarterly filings. Please refer to Fig B below. As is obvious, business services revenue (BSR) has been going up in value as well as in terms of percentage of Overall or Total Revenue (OR)