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Thread: Daily Satellite TV News

Strong growth for AOL video, mobile, programmatic and native ad revenue The investments that AOL has made over the last

  1. #5081
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    Strong growth for AOL video, mobile, programmatic and native ad revenue

    The investments that AOL has made over the last few years are paying off according to the online giant’s first quarter results for 2015.


    For the quarter ended 31 March 2015, revenue grew 7% year on year, driven by 12% growth in global advertising and other revenue. This was 9% growth on an FX neutral basis.

    Cost of revenues increased $34 million year-over-year, driven by a $46 million increase in traffic acquisition costs (TAC) associated with the growth of search and third party properties revenue. Excluding TAC, costs of revenues declined year-over-year.

    Of the AOL business lines, AOL Platforms was the stand out performer with revenue growing 21% year-over-year, driven by 19% growth in third party properties revenue. This was said to reflect increases in the sale of premium formats, including video, across the company’s programmatic platform. AOL added that the revenue growth further reflected increased adoption of its programmatic products, which drove growth in revenue from platform access and services fees. Revenue growth also reflects 35% growth in revenue from AOL Properties inventory sold through our programmatic platform. Declines in AOL Platforms Adjusted OIBDA reflected increased investments in the video and programmatic platform.

    "AOL grew its consumer base strongly and saw continued strength in video, mobile and programmatic advertising, while we also updated the structure and capabilities of the company,” said Tim Armstrong, AOL chairman and CEO. “AOL continues to grow in strength and we are on a mission to scale the first Media Technology company of the internet and mobile age.”

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    Charter rumoured to be drawing up TWC merger plans

    Only weeks after a similar move with Comcast spectacularly came to nothing, Time Warner Cable (TWC) is now said to be in the sights of fellow US cableco Charter Communications.


    According to reports in the Wall Street Journal, Charter is in early talks with banks to arrange a debt package of $25 billion to $30 billion, significantly less than the $45 billion offered by Comcast

    If the reports were true, this would be the second time that Charter has tried to acquire TWC, failing with a hostile bid at the end of 2014. So far the move has not attracted any criticism from Charter’s investors. The WSJ quoted Greg Maffei, CEO of Liberty Media which 25% owner of Charter, as saying that his company would not change its holding and that partners may be lining up to help out with a TWC bid.

    In addition to price, regulation may also play a significant part in what may happen, being a key factor in the failed Comcast bid for which US telecoms and broadcast regulator the FCC had a number of concerns regarding the merger’s effect on online video development in the country. Even though Comcast and Charter are dissimilar organisations, analysts were already expecting FCC approval as crucial to any development.

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    Alianza launches LATAM anti-piracy ad campaign

    DetailsJuan Fernandez Gonzalez | 10 May 2015


    Alianza Contra la Piratería, the pan-American anti-piracy organisation, has launched its first advertising campaign across Latin American TV, encouraging viewers to choose legal operators over pirate signals.


    The campaign focuses on the varying quality and signal stability, emphasising that pirate operators cannot guarantee the signal, which will eventually damage the entertainment experience.

    The campaign has been created by La Mesa Publicidad and produced by Cinetiemo for Alianza and is being broadcast through DIRECTV's channels. It will gradually launch on other member networks such as FOX, HBO, Globosat, ESPN or Turner.

    “Through this campaign we want to inform people about legal pay-TV's quality and security, supported by a customer service and a company behind the service,” pointed out Michael Hartman, senior VP for legal issues at DIRECTV Latin America.

    During the past few years, pay-TV services have rocketed up across LATAM, a trend also experienced among pirate operators, which have developed set-top boxes (STB) able to capture premium signals and offer them for a lower price.

    According to the latest report from Business Bureau, over 20% of pay-TV connections in Latin America are pirate, a percentage that dramatically grows in some countries such as Bolivia, where nearly half of connections are irregular.

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    Televes launches multi-source mobile TV STB

    DetailsJuan Fernandez Gonzalez | 10 May 2015



    Spanish broadcasting technology specialist Televes has launched a set-top box (STB) able to receive DTT signals from different sources while on the move, and which can create a single source with sufficient quality for displaying on the screen.


    The TVMOTION system gathers all the signals available and filters out the weak ones, sending only the best available to the screen, thus guaranteeing the best picture while moving through areas with poor signal availability.

    Designed on the signal receiver Trimotion, both installation and configuration intend to be user-friendly, so everybody can install the device in their vehicles. It supports resolution up to HD 1080p and includes HDMI and USB connections to play content from third devices.

    With this STB, Televes is targeting road transportation just before the holiday season begins, aiming to develop entertainment systems inside vehicles

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    Univision signs up new financial chief

    DetailsJuan Fernandez Gonzalez | 10 May 2015



    Univision Communications Inc (UCI) has appointed Francisco J. Lopez-Balboa as chief financial officer. He will be based in New York and report to Randy Falco, president and CEO, replacing Peter H. Lori, who has served as interim CFO since February.


    Lopez-Balboa has broad experience as a global financial executive with specific strengths in the media industry. Most recently, he served as a managing director and head of telecom, media and technology investment at Goldman Sachs. Univision is currently going through several changes in its executive team.

    “Lopez-Balboa is a seasoned executive with the ideal combination of keen strategic thinking, media expertise and financial skills”, said Falco. “Over the course of his career, he has played a role in many of the most transformative transactions within our industry and has a deep understanding of our business and the media landscape as a whole. He shares our vision of building a multiplatform media company, and has an acute appreciation for the important role we play in the Hispanic community”.

    “This is an extraordinary time to be joining Univision,” said Lopez-Balboa. “I have long admired Univision’s strong performance and unique growth story, and look forward to working with the board, Randy, Pete and the rest of the management and finance teams.”

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    Netia set to expand

    Poland’s leading alternative telco Netia has signed a preliminary agreement to buy 100% of shares of TK Telekom from the PKP Group.

    The deal, worth PKN221 million (€54.5 million), will be financed through existing credit lines and is subject to clearance from the competition authority UOKiK.

    It will also require the approval of a general meeting of PKP’s shareholders. Once given the all clear, it will increase Netia’s infrastructure by 11% – TK Telekom currently has a 7,500km fibre network – and business client base by more than 28%.

    Besides providing IPTV services, Netia is a recent entrant to Poland’s cable market, having acquired some former Aster networks from UPC Polska.

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    Spotify to offer video streaming

    Spotify is set to launch a video streaming service later this month.

    Quoting people familiar with the matter, FT reports that its debut will be announced at a launch event in New York on May 20.

    It adds that the service will be unlike Netflix or Hulu, instead supporting the company’s core music streaming business.

    The latter currently has 60 million customers, with 75% opting for the free tier and the remaining 25% paying for the service.

    Spotify is likely to have an IPO that could raise $500 million, valuing the company at over $8 billion.

    It faces growing competition in the music streaming business, with YouTube and Apple both set to launch services, the former as soon as next month.

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    Tigo taps Intraway to fight pay-TV fraud in Guatemala

    Following a regional agreement between Millicom and Intraway Corporation, Guatemala's Tigo has selected the latter's complete provisioning solution for data services, fraud control, multimedia DOCSIS, PacketCable, network monitoring and firmware management.


    The solution, which was selected through an open bidding process, comprises Intraway's provisioning suite for data and multimedia services, together with device fraud control, automatic firmware control, and a network and service monitoring system.

    "The employees at Intraway and Trektel, Intraway's representative in Latin America, always provide support throughout the installation process and the commercial launching of the product. Thanks to this team, we achieved 100% of the project's objectives in a timely manner," said Ivan Zelada Fierro, systems engineer director at Tigo Guatemala.

    "For Millicom it was essential to have alternatives for preventing device fraud and guaranteeing installation quality through a self-provisioning portal, among other critical functionalities. We are satisfied that we were able to help them with a complete, flexible solution that has already been implemented by some of the largest operators in the region," added Ricardo Simpson, COO at Intraway.

    Earlier this week, Intraway and Millicom announced an agreement to secure Millicom's revenues across its different direct-to-home (DTH) operations throughout Latin America.

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    Major US pay-TV providers post weakest ever quarterly additions


    Leichtman Research Group has posted worrying statistics showing Q1 2015 was the weakest first quarter for pay-TV net adds since it began tracking the industry over a decade ago.


    In its analysis, LRG found that the 13 largest pay-TV providers in the US, representing about 95% of the market, added fewer than 10,000 net video subscribers in Q 1 2015, compared with a gain of over 250,000 video subscribers a year earlier.

    Such providers, said LRG, account for nearly 95.2 million subscribers, with the top nine cable companies having about 49.2 million video subscribers, satellite TV companies having over 34.2 million subscribers, and top telephone companies having over 11.7 million subscribers.

    Overall for the past year, pay-TV providers lost about 370,000 subscribers compared to a loss of about 65,000 subscribers over the prior year.

    As tracked by other firms, the survey found that the cable industry was certainly in the mire, with the leading nine companies in the sector losing about 60,000 video subscribers in Q1 2015. This was 50,000 in Q1 2014.

    Satellite TV providers lost 74,000 subscribers in Q1 2015, compared with a gain of 52,000 in Q1 2014. Consistent with the poor overall pay-TV performance, total DBS net adds in Q1 2015 were the fewest in any first quarter, and fourth lowest in any quarter since LRG began tracking the industry.

    IPTV providers actually added 140,000 video subscribers in Q1 2015, yet this was still down compared with Q1 2014 that saw 251,000 net additions. That said, in Q1 2014 net video adds for the Telcos in Q1 2015 were the fewest in any quarter since Q4 2006.

    "The traditionally strong first quarter for the pay-TV industry did not prove to be so this year. Despite virtually breaking even in the quarter, the first quarter of 2015 marked the first significant sign of an acceleration in pay-TV subscriber losses," said Bruce Leichtman, president and principal analyst for Leichtman Research Group. "In addition to changes in consumer demand for video services spurred by competition from alternatives, the decline of about 0.4% of subscribers over the past year was also driven by several providers becoming more discerning in customer acquisition and retention, focusing on higher-value/lower-churn customers at the expense of the volume of subscribers."

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    Movistar TV prepares to enter Argentinean pay-TV market


    Following the go-ahead being given for telcos to start offering pay-TV services in Argentina, Movistar TV, Telefónica's video unit for Latin America, is preparing a cable offer to enter the most mature market in the region.


    According to Telefónica's head of video for Latin America, Luis Delamer, during a panel discussion at NexTV Summit South America, the Spanish telco has "a goal of entering the Argentine pay-TV market, since the regulatory dispositions allow it. We are analysing the option of entering, but the regulatory authority is still to be consulted".

    After a long debate, Argentina sanctioned a new telecoms law at the end of last year. The regulation allows telecom companies, which could previously only provide voice and data services, to enter the pay-TV market using the existent cable networks.

    "We haven't killed anyone in the markets where we have entered into the pay-TV market," Delamer added. "The pay-TV market is much more concentrated than the telecommunications market."

    Telecom Argentina also recently announced it too is seriously considering the option of entering the pay-TV market.

    Movistar TV, which bases most of its operations on satellite technology, is currently operating in Chile, Brazil, Colombia, Peru and Venezuela.


 

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