Posts tagged ‘com hem’

Cable is the new cinema

The Net Effect:
Evolving Landscapes on What We Used to Call Television Encouraging Investors

A net effect imageCable is the new cinema. Or so AMC’s CEO Josh Sapan says in this issue of Cable News when talking about TV’s second golden age which many attribute to long-arc shows that define modern TV today. But Sapan calling cable TV the new cinema is more than just pithy CEO talk. It is shorthand for an evolution in how people watch television and connect to the internet.

TV: Hey, We’re Trending!
Consumers are also using a second connected device when watching the long-burning plots that have come to define the television landscape of today. A recent study by Ericsson ConsumerLab tells us that 75% of people multi-task by using mobile devices while watching TV. It’s not hard to guess why Twitter is testing “TV trending”, has teamed up with Neilsen for Nielsen Twitter TV rating and even acquired a social TV analytics firm earlier in the year. It’s easy to make stats sing the right tune but at the same time, it’s impossible to not spot the trend when considering that the number of connected TVs in Europe has exploded by over 120% in the last year according to IHS (see the back page for more detail).

Are you experienced?
Cable industry leaders like to refer to the melded TV/internet offering as an “experience” given the reworking of what was once a mono-directional broadcast into a viewer’s home that has now evolved with the consumer at the centre. Holding the remote control these days means holding a lot more power than even just ten years ago – the viewer can decide when and on which device they want to watch whatever they want. TVs are smarter and they have to be given the increased sophistication of the cable consumer.

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Com Hem stable in competitive Swedish market

Com Hem reported an increase in profits for the third quarter…

…despite the heavy competition in the Swedish market that continues to claim subscribers. Revenues for the period ending September 30, 2012 came in at SEK 1,133 million (€131.91 million), though the number of connected subscribers remained unchanged in the quarter at 1.75 million, arguably an achievement against competition from IPTV and OTT rivals.

Operating profit was SEK 167 million.

“In a very competitive market, we deliver a stable income which will enable us to continue to invest in products and services, including our new TV platform TiVo as we roll onto the market in 2013”, said Tomas Franzén, CEO, Com Hem.

TiVo is currently slated for launch in the second quarter of 2012.

During the third quarter work on the final phase of the Com Hem channel plan commenced. This involves a restructuring of the network to both minimize errors and create more space on the network.

By Julian Clover, Broadband TV News

TV Everywhere is both cable’s “best defence” and threat

TV Everywhere is cable’s best defence against cord-cutting…

…but could accelerate the unravelling of the relationships that keep the industry going, according to Stuart Sikes, president of Parks Associates. Speaking on a panel session at the CTAM Europe EuroSummit, Sikes said that cable operators were not actively promoting TV Everywhere services to their subscribers. He cited the example of Swisscom, which had bundled TV everywhere with its top-tier offering. This, he said, did not address the danger of lower-tier customers churning.

Parks Associates research showed that about 10% of customers were looking to “cut the cord” in the immediate future, and that very few of these would be retained by the offer of TV Everywhere services. Awareness of such services remained low, Sikes said. However, consumers did see value in TV Everywhere and a significant proportion would be willing to pay for it, which presents both an opportunity and a threat to cable as consumers could turn elsewhere for such services, Sikes added.

While cable operators had good relationships with content providers, the issues involved in delivering services over multiple operating systems to multiple devices with multiple DRMs was challenging. Sikes said that revenue from TV Everywhere would not be significant enough to pay for infrastructure needed to support it. There was also a trend towards the replacement of high-value subscription services with relatively low-value over-the-top TV Everywhere services, he said.

“Pay TV operators may be in for a long period when their return on investment on these services will be negative,” said Sikes.

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