Microsoft has reported an increase in revenue for its Xbox platform by some $104 mil. over their Q4  ending June 30th. Xbox One, Xbox 360, and Surface sales boosted  Microsoft’s Computing and Gaming Hardware category by 23% in the quarter to $1.44 bil. Microsoft says it shipped 1.1 mil. consoles in the period. Source: Joystiq, Microsoft 7//22/14.

Satellite-Cable-Telco Subscribers
Company/Industry 2009 2010 2011 2012 1 yr. 3 yr.
(millions of subs)         Sub. Change
Comcast 23.559 22.790 22.331 21.995 -336 k -1,564 k
DirecTV 18.125 18.837 19.532 19.764 232 k 1,639 k
Dish 14.100 14.133 13.967 14.056 89 k -44 k
Time Warner Cable 12.859 12.422 12.061 12.218 157 k -641 k
Cox 6.200 6.150 6.090 6.000 -90 k -200 k
AT&T 2.500 3.373 4.144 4.856 712 k 2,356 k
Verizon 2.750 3.472 4.173 4.726 553 k 1,976 k
Charter Cable 4.824 4.520 4.314 4.158 -156 k -666 k
Cablevision 3.063 3.314 3.250 3.197 -53 k 134 k
Totals 87.980 89.011 89.862 90.970 1,108 k 2,990 k
Cable TV (5 MSOs) 50.505 49.196 48.046 47.568 -478 k -2,937 k
Satellite 32.225 32.970 33.499 33.820 321 k 1,595 k
Telco 5.250 6.845 8.317 9.582 1,265 k 4,332 k

Is Cord-Cutting A Myth? Do The Math!

By Paul Kagan - April 23, 2013

The popular image of "cord-cutting" - movement of interest from cable TV to online viewing--has been misread from the beginning. Reports of cable TV subscriber losses miss the fact that satellite and telephone companies built their own "cords." So, despite the advent of Netflix, Hulu, YouTube and other online providers, over the last three years (2010-2012) cable, satellite & phone operators - each of them "cords" with monthly contract fees - added a total of 3 mil. net new subscribers (see table above).

Concerns that a shift from TV to the internet have put incumbent carriers on a downward - perhaps fatal - path are way over the top (pun intended). Print critics in newspapers, magazines and online (veteran cynics of wired TV) have conjured a mass movement to online video, an opinion that helps them promote their own ventures.

As the table above shows, the nine largest "cords" (cable, satellite and telephone providers) - had 91 mil. subscribers at year-end 2012, up 3 mil. from 2009, when cord-jumping fever settled in. The biggest gainers on the list were AT&T (+2.36 mil.), Verizon (+1.98 mil.) and DirecTV (+1.64 mil.). And in 2012 alone, the big telcos added 1.265 mil. subs, Satellite gained only 321K and cable gave up 478K. (Note: for this analysis, I used data from only the five largest cable MSOs. But research indicates similar percentage performance deeper into the list.

The data above are not my estimates; they were reported by the companies. It's clear that, despite populist fears of cord-cutting, the nine largest video distributors signed a net new 3 mil. subscribers over the last three years while pundits accused them of losing audience to internet video newcomers. The new online networks surely are building their own followings, but they have a long way to go to be full competitors.

One of the biggest obstacles for the newbies is their own chronology. People aged 20-35 today - the primary cord-cutters--will lead different lives as they mature, when work and family responsibilities will have greatly changed. The economics of time and taste will find big screens on walls everywhere, and family viewing may well have a renaissance. Indeed, Google Fiber - for one - is counting on it. The search giant is planning to overbuild the nation with a gigabyte network designed to compete head-on with its cable/telco predecessors, while bowing to the needs of this generation's heavy downloaders.

Google clearly got the idea from the original cable guys, whose revenue comes primarily from video content but whose profit depends largely on similar access to the internet. Let the upgrading begin.




© 2013 PK Worldmedia, Inc.   All rights reserved.

Stocks Mixed on Q2 Results; Facebook Earnings Soar

 

By Catherine Hertzberg 
- July 23, 2014
 

  Continued concern over tensions in Ukraine and Gaza tempered gains spurred by positive earnings reports. The Dow slipped 27 pts. to close at 17,087. The S&P 500 rose 3 pts. to a record high close of 1987.

  Facebook added 3% on heavy volume during regular hours. It shot up 5% in late trading to a new all-time high of $75.35 after releasing Q2 results. It posted net income of $791 mil. vs. $333 mil. a year ago.

   Social Media, up 2% Wednesday, is down 20% from its all-time high of 124.67, set February 27.

   Apple also gained 3% in heavy trading. It posted Q2 net income of $7.7 bil. vs. $6.9 bil. in Q2 2013, beating analysts' estimates.

  Juniper Networks slid 10% in 6x avg. trading. It reported Q2 EPS of 27 cents, vs. 21 cents a year ago, but missing analysts' estimates. Its Q3 forecast is also below analysts' estimates.

 

 Indices  7/23  7/24  %YTD 
 Video Gaming 12.63 12.76 39.0 
 Fiber Optics 2.62 2.64 24.4 
 Internet Content 57.18 57.74 22.2 
 Satellite TV 74.97 74.42 17.0 
 Consumer Elec. 81.45 81.65 16.8 
 DJ Utilities 558.71 560.57 14.3 
 Telco 41.94 42.04 11.8 
 Towers 319.45 314.35 10.9 
 NASDAQ 100 3,986.19 3,983.19 10.9 
 Home Video 231.81 230.15 10.1 
 Cable MSO 70.82 71.05 9.3 
 Digital Life 521.69 524.72 9.2 
 S&P 500 1,987.01 1,987.98 7.6 
 NASDAQ 4,473.70 4,472.11 7.1 
 Wireless Tech. 13.58 13.59 6.1 
 Broadband Tech. 21.30 21.36 5.2 
 Movie Theaters 13.62 13.67 3.4 
 Publishing 78.21 78.36 3.2 
 Dow Jones Avg. 17,086.63 17,083.80 3.1 
 Internet Media 125.59 125.72 2.1 
 Motion Pictures 37.65 37.81 1.9 
 3D 32.38 32.78 0.1 
 Russell 2000 1,158.11 1,156.26 (0.6) 
 Advertising 98.53 98.68 (2.6) 
 Global Cable 116.55 116.20 (2.9) 
 Television 109.80 109.39 (3.7) 
 Satellite Networks 59.98 60.07 (4.4) 
 Wireless Prov. 29.11 29.09 (4.9) 
 Global Wireless 83.46 84.11 (7.1) 
 Social Media 99.69 103.13 (10.5) 
 Radio 16.87 16.65 (11.7) 
 Interactive TV 21.46 21.24 (13.8) 
 © 2012 PK Worldmedia, Inc. All rights reserved.