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Cable Technology Feature Article

March 26, 2013

Increase Subscriber Base with New Networks, Channels: IHS Report

By Mini Swamy, TMCnet Contributor

ShineRooms.com guides investors through the market’s ever changing landscape and as cable operators continue to face challenges in the subscriber market, it cites Charter Communications (News - Alert) Inc., and TiVo Inc. to show that the situation is not really as grim as it is made out to be.

Continuing the trend set in the previous two years, cable operators once again lost subscribers in 2012 because of increased competition from IPTV (News - Alert) services. However, the silver lining here is that the loss of subscribers slowed down in Q3 2012, giving an overall positive in spite of the decline.

According to the “IHS (News - Alert) Screen Digest Television Intelligence Report, “ which was released in December 2012, cable operators like Charter Communications Inc., and TiVo (News - Alert) Inc., need to offer new networks and channels to increase the subscriber base.

In the face of a definitive agreement, Liberty Media is set to acquire approximately 26.9 million shares and approximately 1.1 million warrants in Charter Communications Inc. for around $2.617 billion, and this is being viewed as a factor that will create greater shareholder value.

TiVo Inc. also seems to have had a good Q4 2012, during which the company earned record revenue of $65.7milllion. Tom Rogers (News - Alert), president and CEO of TiVo Inc., also observed that the company had achieved success in five key areas in 2012 with the launch of new whole-home and multiscreen TiVo offerings and made considerable progress in business during the fiscal year 2013.

Another huge positive was that in the last few months, the labor market outlook showed signs of significant improvement. Pay-TV subscriptions appeared to be less popular because of the uncertainty that had reigned in the labor market.

The IHS report also indicated that U.S. cable operators appeared to be making greater inroads into high-speed data and voice, which is being viewed as a key growth driver for the industry.

In essence, looking at the performances of Charter Communications and TiVo Inc., there seems to be very little doubt that new offerings, new networks and new channels are the keys to an enhanced subscriber base.

Edited by Brooke Neuman

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