Sony has reported cumulative global sales of more than 7 million units for its Playstation 4 console. Microsoft has reported that its Xbox One console has seen 5 million units shipped to retailers since the console’s launch. Sales in the overall video game hardware market are up 78% compared to last year. Source: The Huffington Post, USA Today 4/20/14.

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 Slip on AT&T, Biotech; Apple Announces 7:1 Split

 

By Catherine Hertzberg 
- April 23, 2014
 

  Losses for AT&T and biotech stocks dragged markets down Wednesday. The Dow lost 13 pts. to close at 16,502. The S&P 500 slipped 4 pts. to 1,875, breaking a six-day winning streak.

  After dropping 1% in heavy trading during the regular session, Apple jumped 7% after hours when it reported its Q2 results and an upcoming 7:1 split, effective June 9. It reported EPS of $11.62, beating analysts' expectations of $10.18 per share, and rising 15% over last year. AAPL also plans to buy back $30 bil. of its stock.

   Facebook slid 3% on heavy volume ahead of its earnings report due after the bell, then rebounded 4% in late trading. It reported Q1 EPS of 34 cents, up 72% over a year ago, and beating analyst estimates by 10 cents per share.

   Digital Life, down 7% YTD, is down 12% from its all-time high of 503.60, set March 6.

   AT&T fell 4% in 2x avg. trading after posting its Q1 results. EPS of 71 cents beat estimates by a penny, and were up 11 cents vs. Q1 2013. This was its strongest revenue growth in two years, but its projected 2014 earnings growth of 5% is well below analysts' expectations of 8%.

 

 Indices  4/22  4/23  %YTD 
 Video Gaming 10.81 10.80 17.6 
 Fiber Optics 2.38 2.37 11.7 
 DJ Utilities 542.82 543.15 10.7 
 Satellite TV 68.25 68.38 7.6 
 Internet Content 49.29 49.00 3.7 
 Towers 292.77 291.29 2.8 
 Telco 38.79 38.46 2.3 
 S&P 500 1,879.55 1,875.39 1.5 
 Publishing 75.84 76.46 0.7 
 Movie Theaters 13.32 13.30 0.6 
 Wireless Tech. 12.89 12.82 0.0 
 Broadband Tech. 20.34 20.20 (0.4) 
 Dow Jones Avg. 16,514.37 16,501.65 (0.5) 
 NASDAQ 100 3,588.80 3,557.04 (1.0) 
 NASDAQ 4,161.46 4,126.97 (1.2) 
 Russell 2000 1,155.61 1,147.08 (1.4) 
 3D 31.99 31.96 (2.4) 
 Cable MSO 62.72 63.08 (2.9) 
 Home Video 211.66 202.65 (3.0) 
 Internet Media 120.26 118.90 (3.4) 
 Radio 18.45 18.17 (3.6) 
 Motion Pictures 35.45 35.43 (4.5) 
 Advertising 97.36 96.30 (5.0) 
 Consumer Elec. 66.20 65.60 (6.2) 
 Wireless Prov. 29.04 28.58 (6.6) 
 Digital Life 454.68 445.43 (7.3) 
 Satellite Networks 57.85 57.80 (8.0) 
 Global Wireless 83.71 82.95 (8.4) 
 Interactive TV 22.44 22.47 (8.8) 
 Global Cable 109.64 108.94 (9.0) 
 Social Media 102.13 100.14 (13.1) 
 Television 98.63 98.26 (13.5) 
 © 2012 PK Worldmedia, Inc. All rights reserved.