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Tag: subscribers

  • US Blu-ray and HDTV Households Growing


    Blu-ray Disc player household penetration is up to 12.3 million in the US for the first quarter of 2009, a 71 per cent gain year over year, according to a survey.

    Research firm Centris also found that the number of American households with an HDTV is up to 50.5 million – a gain of 33 per cent from the first quarter of 2008.

    Both satellite and cable industries appear to have matured, however, with satellite subscribers up only slightly to 32 million and cable subscribers mostly unchanged at just less than 63 million.

    Centris’ US Communications and Entertainment report also notes large year over year gains in household penetration for all three next generation gaming systems: 15.2 million for the Nintendo Wii (up 85%), 11.4 million for Xbox 360 (up 28%) and 7 million for PlayStation 3 (up 52%).

    Centris president William Beaumont said that as with its previous research findings, there are several key observable trends as technology developments, marketing programs and the economy take their toll on the industries in which our clients compete.

    "In some areas, we’ve seen a dramatic increase in consumer use of home technology, which flies in the face of what one might expect in this economic landscape," he said.

  • Skype Users Rise by 37m, Revenues up 25% in Q2


    Skype’s subscriber base just keeps on climbing, with another 37 million people added in the second quarter – taking the total year-to-date increase to 75 million.

    Growing subscribers also means growing revenues and the VoIP company saw Q2 revenue jump 25 per cent year-over-year to USD $170 million.

    The Skype figures were contained within parent company eBay’s financial results for the second quarter ended June 30, 2009.

    Its news was not quite so good. The ecommerce company posted second quarter revenue of USD $2.10 billion, a $97.7 million year-over-year decrease.

    The year-over-year revenue growth of PayPal and Skype was offset by the effects of the stronger dollar and a modest decline in the Marketplaces business.

    Another healthy quarter of growth under its belt will do no harms to Skype’s Initial Public Offering (IPO) price as eBay prepares to take the VoIP company public in early 2010.

    Provided the P2P technology lawsuit gets settled first.

  • Consumer LBS Market to Double, "Free" Services to Gain


    Worldwide consumer location-based services (LBS) subscribers and revenue are expected to more than double in 2009.

    The growth is being driven by the higher availability of GPS-enabled phones, reduced prices and the appearance of application stores, according to Gartner.

    Research from the firm’s analysts shows that despite an expected 4 per cent decrease in mobile device sales, LBS subscribers are forecast to grow from 41.0 million in 2008 to 95.7 million in 2009.

    They calculate that revenue is anticipated to increase from USD $998.3 million in 2008 to USD $2.2 billion in 2009.

    Annette Zimmermann, senior research analyst at Gartner, said the LBS industry has matured rapidly in recent months through a mixture of consolidation, improved price/performance of the enabling technologies and compelling location applications.

    "Factors driving the increase in the next year or so include higher availability of GPS-enabled phones, reduced prices and appearance of application stores," she said.

    Gartner predicts that advertising-based or ‘free’ LBS (disregarding data charges by mobile carriers) will gain more traction as users adopt it as a way to limit costs.

    Mobile carriers that stick to the current predominant business model of charging users USD $5 to $10 per month plus data plans will experience high churn rates as users will look for free alternatives.

    In North America and Western Europe, the share of users taking advantage of free services is approximately 10-15 per cent today and is expected to grow to 40-50 per cent in 2013.

    Zimmermann said the competitive landscape will change and most mobile carriers need to alter their approach toward offering LBS and dealing with developers.

    "Subscriber growth will hinge on "free" – disregarding data charges – services," she said.

    "Mobile operators’ initiatives to open up the application programming interface (API) to third-party developers will help them compete against other players in the market and will also be beneficial to the different parties involved, down to the end user."

    Gartner expects more compelling and useful applications and services to come to market in the next 12 to 18 months such as digital coupons to be redeemed in a nearby shop and points-of-interest search services.

    Smaller niche players will survive in local markets only when they have an established user base and unique offering that larger players cannot compete with. Other players will be acquisition targets for larger vendors.

    The Gartner analysts said LBS market dynamics vary by region. For example, North America is the largest market due to mobile carriers’ strong efforts in navigation services and family-safety solutions.

    In Western Europe, navigation is currently the most used application, followed by local search and "friend finder." There is still no significant uptake of safety applications.

    Japan will continue to see steady growth as GPS has been required by law in mobile phones since 2007.

    In Asia/Pacific, during the summer Olympics, location services were for the first time offered in China which is now an advertising-based solution and free to the user.

  • HD Uptake Drives ZON's Q1 Figures


    Portugal’s leading cable provider ZON has doubled the take-up of its HD DVR.

    Called the ZON Box, it was installed in 93,000 homes in the first quarter of 2009, pushing total installations up to 184,000 – 12 per cent of the total customer base.

    ZON has attributed the success of the high-def product to an increase in per subscriber RGUs to 1.94, as ARPU grew by 3.5 per cent year-on-year to EUROS 32.7.

    The total number of subscribers receiving digital extended basic increased from 399,800 to 539,600.

    Premium pay-TV subscribers increased slightly to 835,300.

    Operating Revenues increased to EUROS 201.5 million in 1Q09, a year on year growth of 7.1 per cent giving an EBITDA increased to EUROS 64.3 million.

  • BSkyB's Revenues Rise As HD Subscribers Double


    It’s taken a while but HDTV seems to have firmly established itself in the UK – underlined by the latest surge in subscriber numbers for BSkyB.

    The satellite broadcaster has seen its HD base leap to more than one million subscribers – up 32 per cent on the previous quarter and more than double the 465,000 who signed up last year.

    The strong uptake of its Sky+ HD service played a big part in increasing BSkyB’s Q3 revenues to GBP £1.4bn – up by 12 per cent compared with Q3 2008.

    Pre-tax profits grew 13 per cent to GBP £63m (USD $93m).

    Sky+ HD subscribers rose by 243,000 in Q3 2009, helped by a cut in the price of the HD set-top boxes from GBP £150 to £49.

    This decision cost the broadcaster around GBP £60m in upront cost but resulted in increased revenues from more expensive subscriptions.

    Average annual revenue per customer rose 7 per cent to GBP £452.

    Jeremy Darroch, BSkyB’s CEO, said the subscriber increase was generated by a growing trend towards HD among customers, alongside its HD box strategy.

  • Skype Revenues Continue Growing in Q1


    Its future with parent eBay may be uncertain but that hasn’t prevented Skype from continuing to generate revenue.

    eBay’s Q1 financial statements published this week show the VoIP company is still increasing revenue, minutes and users.

    In the first quarter of 2009, Skype had revenues of USD $153.2 million, up from USD $145 million in Q4 of 2008.

    If trading continues in this vein the company is on target for USD $600 million in revenues for the year.

    Skype added 37.9 million registered users in Q1 – up from 35 million new users in Q4 2008.

    This takes its total tally to 443.2 million.

    In addition, it rang up 2.9 billion Skype Out minutes in the quarter – panning out to just over 6.5 minutes per user.

    Certainly a healthy position for a company that could be spun off from its parent.

  • AQA2U Launches Twitter-like Premium Text Service


    Text message answer provider AQA has launched a new mobile service that it claims will allow content publishers to make money by sending text messages.

    In what could be seen as a reference to Twitter, UK-based AQA’s CEO, Colly Myers, describes the new venture as "web 2.0 with a business model".

    He said the service allows anyone with interesting content to connect and keep in touch with their followers, making money from every text that’s received by subscribers.

    The company started off by setting up AQA 63336 (Any Question Answered) five years ago.

    This service answered questions texted to it – so far it has provided over 17 million answers to over 2 million customers.

    With AQA2U content "publishers" create topics for people to subscribe to, market these topics to their followers, and then start writing content.

    AQA2U sends their content out to subscribers using premium text, giving publishers the majority share of net revenue received.

    Publishers are limited to no more than 14 texts a month or 3 a day, for which they receive 7-9p per message per subscriber.

    Users pay a maximum of GBP £3.50 a month, plus a 98p initial fee.

    Myers said that with no set-up costs, and with only 25 subscribers, a publisher can make GBP £275 per year.

    With 250 subscribers, a publisher can make GBP £3,000 a year.

    "AQA2U puts texts, alerts, updates and offers from anyone who’s got something to say, into the hands of followers who are passionate enough to part with a few pounds per month," he said.

    "We already know people will pay for this, as we get many thousands of texts to AQA 63336 asking the same types of questions time and time again."

    Myers said he was confident of rapid growth as even small publishers who get a few people to subscribe start making money, and all publishers have a vested interest to market their topics.

    "We’ve got over 2 million customers with AQA 63336 in five years, so we’re confident of getting 2 million subscribers in the next five years with AQA2U – delivering 20 million texts per month from publishers."

    We’d be interested to hear your feedback on this new service. Would you pay to receive content?

  • SUN Direct Launches HD DTH Service In India


    Sun Direct has announced the launch of India’s first HD broadcast on the direct-to-home (DTH) platform.

    The service provider has built up a subscriber base of three million since its launch in December 2007, making it India’s second largest DTH provider.

    Tony D’Silva, COO of Sun Direct, said that to keep viewers engaged it was necessary to constantly change offer new and exciting options.

    "In the coming fiscal year we look forward to occupy the pole position," he said.

    "We have added more customers than any other DTH player in the last one year and in the coming days we will be adding more innovative features, services and channels in our offerings."

  • MobiTV Readies European Expansion As Momentum Grows

    INTERVIEW: Anders Norström, managing director of MobiTV Europe, talks about the company’s expansion plans and the growing consumer appetite for mobile TV

    While the uptake of mobile TV has been a slow process, it finally appears to be gathering pace.

    MobiTV, founded in 1999, was the first to bring live TV to mobile devices and remains at the forefront of a field that is becoming increasingly competitive.

    It is firmly established in North America where it was first rolled out via carriers such as AT&T, Cingular and Sprint.

    Now the California-based pioneer of mobile TV is looking to broaden its reach and is in the process of developing its services for the European market.

    Anders Norström, managing director of MobiTV Europe, told smartphone.biz-news that he strongly believed there is now a mass market for mobile TV – something backed up by his company’s rapidly growing subscriber numbers.

    It now offers content and primetime channels to over 6 million subscribers on more than 350 handset models on its managed mobile media service.

    In February it added the iPhone to the list of supported handsets (although Apple approval is still pending).

    Anders Norström, managing director of MobiTV Europe

    "The last million only took a couple of months. It’s really taken off," said Norström.

    MobiTV’s Media Distribution Platform has shown it’s able to deliver live streaming and on demand video content.

    In March, it was used in CBS Sport’s NCAA March Madness app for the iPhone and iPod Touch, which provided live streaming video and audio over a wi-fi connection from the 2009 NCAA Division I Men’s Basketball Championship.

    The massive popularity of MobiTv’s live airing of Barack Obama’s inauguration to its subscribers is another indicator of the way things are moving, according to Norstrom.

    "It was a huge usage of this kind of service. It’s really coming on," he said. "The network is becoming better, devices are becoming so much better and the back-end technology is so much better.

    "So we have an increased end user experience."

    Expansion Into Europe

    Norström said the US is currently MobiTV’s main market, followed by South America.

    But he said Europe is the next target. The company is currently in discussion with different customers and carriers.

    "Hopefully by the end of the summer we will be deploying our first services," he said.

    "The European market is huge. There are very good networks and really good content."

    The approach and strategy taken in Europe will be slightly different to that across the Atlantic, according to Norström.

    In the US, carriers are more interested in total managed services whereas in Europe he said media carriers often want to run them in-house.

    So MobiTV is giving them the opportunity to have either, or to begin with a managed service and transfer to their own network once they are up and running.

    Since there are very few pan-European channels – Bloomberg and MTV, being examples – Norström said most content was specific to countries and made in the local language (German, Italian, French etc).

    He said Tier 1 carriers largely did their own content deals, adding: "But we have contacts in the content and industry and can help them – we are an enabler."

    Hybrid Services In Future

    Looking ahead, Norström said the type of content likely to be made available on mobile TV services would be mixed between TV, video on demand and live broadcasts.

    It would also comprise hybrid services, which combine broadcast and unicast video on demand – a mix of content and technology.

    He said in the US this will take the form of joint ventures, providing free-to-air DVB-H/ATSC-M/H services as well as the unicast/VOD solutions.

    This is necessary for 3G carriers, which are short-cut by DVB-H, and want to be involved in the "action", according to Norström.

    MobiTV is also now offering localised services on top of its standard platform.

    Personalised Services "Essential"

    These include Mobi4Biz, a version of MobiTV aimed at the financial market which was launched recently for BlackBerry Bold handset owners on the AT&T network.

    Norström has no doubt that this more vertical, personalised approach to mobile TV is essential.

    "That is the way to go. We are starting to have some overflow of information, as happened on the Internet, with mobile channels," he said.

    "How many do we really watch? If you have 30 0r 40 channels on a mobile, does it really make sense?"

    Norström said MobiTV will aggregate the information by category – sport, childrens’, business, fashion and so on – and provide a back-end solution.

    Interactivity will also become an important ingredient of mobile TV, especially when it comes to ads.

    Last year, MobiTV did adverts for BMW that were tailored to choices viewers made while viewing.

    Personalised ads is something that Norström said will become part of a bundled package in the future.

    Interactive ads allow a profile of users’ interests to be created and allow advertising to be targeted based on individuals’ preferences.

    "It should be happening fairly soon in the US," he said. "But we are region agnostic and it will also happen in other markets."

    Too Soon For Ad-supported Model

    However, while advertising – and especially the targeted variety – has great revenue potential, Norström said MobiTV would not be moving to an ad-supported model any time soon.

    "For quite some time more it will be a pay model," he said. "It is realistic that some content will be ad-supported but it will not be the main model."

    Network overload is a common concern whenever mobile internet is mentioned, but Norström said he didn’t believe it was a problem at the moment.

    He said that even if it did become one, there were technological solutions available to ease the impact of congestion.

    These will undoubtedly be required if the way in which the iPhone has vastly increased data traffic levels is anything to go by.

    Especially as the Apple handset has spurred other mobile makers, such as Nokia, to replicate the iPhone’s end user experience.

    "We will see an increase in data traffic, but we are fully prepared for that," said Norström.

    Growth Affected By Downturn

    What is also certain is that the global economic downturn will have an impact on the growth of wireless video.

    But Norström said that, so far, there had been no increase in churn.

    "In the US, it seems people are getting rid of their fixed lines and keeping their mobile devices as the means of consuming content as well," he said.

    "But the economic situation will slow down the increase in subscription numbers."

    That may be so but improvements in handsets and technology are making the outlook for mobile TV look increasingly bright.

    Proof of this comes from growing subscribers – but also from the entry of the likes of Qualcomm in the US and Orange in France into the market.

    A healthy development – and one MobiTV appears well placed to deal with.

  • Turkish Mobile Market: Opportunity Beckons With Summer Launch of 3G Network

    INTERVIEW: Isik Uman, general manager of leading Turkish service provider Retromedya, talks to smartphone-biz.news about the rapidly changing mobile market in Turkey.
    With 3G going live this summer, the nation’s 66 million mobile subscribers are expected to take full advantage of new services – making it an appealing prospect for operators and service providers.

    Turkish consumers love their mobiles. As one of the fastest growing mobile markets in recent years, wireless penetration currently sits at 92 per cent.

    That’s pretty impressive – especially as Turkey doesn’t have handset subsidies.

    People buy their mobile phones and then choose their operator.

    Isik Uman, general manager of leading Turkish service provider Retromedya, said increasingly that decision is being driven by the demand for richer content – something that has progressed as rapidly as improvements to handsets and mobile networks.

    Build-up To 3G

    The potential for content is going to get even more interesting this summer when Turkey’s 3G network kicks in.

    And there is no shortage of hardware ready to use it.

    Even without handset subsidies, Uman said there were around 3.5 million 3G phones already being used in Turkey.

    "That’s 3.5 million potential users for it," he said.

    While there are no official figures, an estimated 300,000 iPhones have been sold in Turkey since it launched last summer.

    On top of that sales of other high-end handsets from HTC and Nokia – which has a 60 per cent share of the mobile market in Turkey – are strong.

    All this makes the country one of the more attractive markets for handset manufacturers.

    That is likely to continue as 3G is rolled out – with all the opportunities that will bring.

    Competition Intensifies

    The development is expected to pit operators head-to-head, with 3G and a host of new services – including LBS – being used as the hook with which to lure customers.

    As a result – and despite the global economic situation – Turkey’s mobile operators are projecting Turkish Lira-based growth this year.

    The country’s three GSM operators – Turkcell (37m subscribers), Vodafone (17m subscribers) and Avea (12m subscribers) – earned between them an estimated 13 billion Turkish Liras (approx. USD $10 billion) in 2008.

    But as Turkey is a large country – and requires a lot of base stations to provide coverage – average revenue per user (ARPU) is between USD $11-14.

    This hasn’t affected competition among the operators, which is fierce – especially following the introduction of mobile number portability in Turkey last November.

    More than 1 million subscribers have changed operator since it became available.

    The ability for users to switch operator has also led to the adoption of new marketing strategies from the operators, including the introduction of a subsidy-like model to retain or lure valuable customers.

    "Before we had number portability, people like business professionals, company owners, doctors, lawyers and so on didn’t want to change their mobile numbers," said Uman. "It just wasn’t acceptable.

    "Now with number portability, we will see subsidised handsets being used as a means to lure lucrative customers."

    Uman said it was also likely that flat-rate data tariffs would become more common when 3G goes live.

    He said this would obviously benefit service providers such as Retromedya.

    "We are counting on this as it will make our services more attractive and easier to use," he said.

    Retromeyda already offers content to all three operators in the form of:

    • music services
    • video content – downloading on-demand video
    • mobile games
    • interactive voting
    • mobile community and chat

    As well as providing consumer services, Retromedya also offers B2B gateway services to third party players in the market.

    Uman said these were white label services to companies that want to provide mobile services in Turkey.

    "We believe this year will be very interesting for the Turkish market," he said.

    "Commercial services will be very important and offer a big opportunity, which we are trying to address."

    Uman said there had been a lot of interest in Retromedya at the recent Mobile World Congress in Barcelona.

    He said this was a reflection on the potential revenue prospects Turkey’s mobile market offered service providers.

    "We provide the infrastructure for them so they can quickly introduce their services and operations," he said.