Verizon and AT&T Gain 583K Subs in 1Q/2009
April 2009
Verizon said that it added 299,000 subscribers for its FiOS TV service and now has 2.2 million total subscribers. In the 4th quarter of 2008, Verizon added 303,000 FiOS TV subscribers so there was a slight decrease from the previous quarter.
As a result, Verizon is now the 7th largest pay-TV company in the U.S. Its FiOS TV penetration is 22.9%, and it now passes 9.7 million homes.
Verizon reported US$1.3 billion in revenues from broadband and video services while net profit was up 5.3% against a year ago, as Verizon added 1.3 million new wireless customers. Verizon also added 298,000 fiber Internet customers to reach 2.8 million. AT&T reported a net addition of 284,000 U-verse TV subscribers during the first quarter of 2009. AT&T now has 1.3 million U-verse subscribers. In other financial news, AT&T reported a net profit of US$3.2 billion, which was 9% lower than a year ago. Revenue for the first quarter was US$30.57 billion, which is less than 1% compared to a year ago.
Year over year, AT&T has grown subscribers from 379,000 to 1,329,000, which comes out to a 251% growth rate. By contrast, Verizon has gone from 1.2 million to 2.2 million, which is only an 84% growth rate.
Source: MRG, Inc., April 2009 IPTV Bulletin
Move Networks Acquired Inuk Networks
April 2009
Move Networks announced that it acquired Inuk Networks, a U.K.-based provider of virtual set-top box software for PCs. Terms of the acquisition were not disclosed. Move Networks provides the streaming technology and delivery for ABC, Fox, the CW and other major television broadcasters.
Analyst Comment: This is an event which is likely to significantly impact the North American IPTV market by enabling Operators to expand their normal IPTV service to PCs and laptops in the household over the broadband network, while not compromising content security or quality. If Inuk works as advertised, Operators are expected to use the “virtual STB” as a “loyalty enhancer” or a modest revenue generator that needs no extra truck roll for the upgrade. Move Networks’ CEO said that they will likely roll out a virtual STB project within 90 days.
Source: MRG, Inc., April 2009 IPTV Bulletin
{Note: analyst comments are italicized}
Comcast's Big Internet Video Play
April 2009
Comcast said it will make its Cable TV content available to subscribers over the Internet through its Fancast.com site. Its new on-demand Internet video service will allow Comcast subscribers to sign in with a username and password, then access any standard or premium Cable content from their subscription.
Source: MRG, Inc., April 2009 IPTV Bulletin
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