U.S. cable and wireline phone providers had the biggest jump in broadband additions last quarter since 2009, reported Leichtman Research Group Wednesday. The top 96% of providers acquired 1.53 million net additional subscribers vs. a pro forma 615,000 a year ago. Cable companies gained 1.3 million, the third consecutive quarter of 1 million-plus additions, vs. 830,000 a year ago; telcos added 210,000 vs. a net loss of 220,000. Cable companies have 72 million broadband subscribers; telcos, 32.9 million.
Traditional video service still has life "in my neck of the woods" in ways it might not on the coasts, said Patty Jo Boyers, president of southeast Missouri-based cable ISP Boycom Vision, on C-SPAN's The Communicators, to be televised this weekend. She said part of Boycom's customer base is elderly poor who can't access over-the-top service. She said cord cutting slowed during the pandemic, and the company had a big increase in broadband customers, due partly to OTT demand. Asked if the FCC is "an ally," Boyers, who's also ACA Connects chairman, said, "Today, yes. In the past, not so much." She said Chairman Ajit Pai's administration "has been refreshing" with its work on reversing onerous regulatory burdens. She said the way U.S. broadband networks handled a deluge of demand during the COVID-19 pandemic was proof of that approach. "We consider [all FCC administrations] allies," though it will sometimes disagree, ACA President Matt Polka said.
Cable operators no longer must maintain records in their online public inspection files on attributable interests in video programming services or their carriage of vertically integrated video programming services on cable systems in which they have an attributable interest, says Wednesday's Federal Register. The FCC attributable interest rule changes were adopted in September (see 2009290052).
Roku is the only major video streaming service without HBO Max, after HBO's announcement Monday the service will be available on Amazon Fire TV devices starting Tuesday. Roku customers had access to HBO Go before the shutdown of that app in July but can’t get HBO through the Roku platform due to ongoing talks (see 2007010059). “We’re in discussions with Roku,” emailed a spokesperson at HBO parent AT&T Monday. Roku didn’t comment. The $14.99 monthly HBO Max service begins rolling out on Amazon Fire TV streaming players, Fire TV Edition smart TVs and Fire tablets Tuesday. Existing HBO subscribers through Amazon’s Prime Video channels will be able to log into the HBO Max app with their Amazon credentials “at no additional cost,” said HBO. The HBO app on Fire TV and Fire tablets will automatically update to become the HBO Max app, and customers will be able to log in using existing HBO credentials. HBO Max customers, regardless of how they subscribe to the platform, can access all of HBO Max via supported Fire TV and Fire tablet devices using existing provider credentials, it said. The agreement includes integration with Alexa for voice search. HBO Max content is also integrated into universal search on Fire TV: Its content will appear in searches such as “Alexa, find dramas” or “Alexa, find Game of Thrones,” for example. Since HBO Max launched in May, 8.6 million customers activated subscriptions.
Xperi raised revenue guidance after its settlement with Comcast of long-standing litigation over its TiVo patent portfolio. The companies signed a 15-year licensing program for pay TV, dating to the expiration of their prior agreement, that supports Xperi’s core pay-TV licensing program revenue through early 2031, said CEO Jon Kirchner on a Q3 call Monday. Comcast didn't comment Tuesday. Xperi raised second-half guidance to $625 million-$645 million from $390 million-$410 million. Xperi Q3 revenue was $202.8 million. Though end markets are beginning to show signs of recovery, Xperi remains “cautious” about the pace of recovery in 2021, Kirchner said. Shares surged 24% Tuesday to close at $17.32. Revenue in the connected car category declined 5.8% to $18.5 million due to lower production during the pandemic. Kirchner referenced signs the automotive market is starting to recover and said a recovery in HD radio shipments will track market trends. He cited car sales projections indicating a 9% recovery next year.
Amended FCC rules on time frames for notifying subscribers of cable TV service changes due to failed retransmission consent or program carriage talks take effect Thursday, per that day's Federal Register. Commissioners adopted the order 5-0 at their September meeting (see 2009300022).
Third-party device manufacturers have become "major players in today’s video marketplace," and the FCC's pending communications market report and its video regulation should reflect that, NCTA said in a docket 20-60 posting Monday. It cited Roku user growth from 9 million in 2015 to 46 million now, and said it has more active accounts than the largest cable TV services have subscribers combined.
NCTA expressed support for the FCC’s draft 5.9 GHz order (see 2010280064), in calls with aides to the commissioners, except Brendan Carr, and to Office of General Counsel staff. “Although NCTA supported designating the full 75 megahertz of the band for both indoor and outdoor operations, the band-split approach described in the draft Order represents a good compromise that is a win for American Wi-Fi and automotive consumers,” said a filing posted Thursday in docket 19-138: “Unlicensed proponents such as NCTA’s members will have access to a contiguous 160-megahertz gigabit Wi-Fi channel … to bring indoor Wi-Fi online quickly to American homes and businesses, with a path to outdoor operations in the future.” Commissioners vote Nov. 18.
Walmart is “constantly having conversations with current and new suppliers about innovation and new products we can bring to our customers,” emailed Ryan Peterson, vice president-electronics. "We don’t share details." He responded to our questions about a report the retailer and Comcast are in talks to develop smart TVs (see 2011030059). The TVs, if produced, would likely run Comcast software with streaming apps on a platform similar to those offered by Amazon, Roku, Google and Apple.
A forthcoming Charter Communications broadband price hike, though it could lead to more churn, "suggests management is very confident" about the business and its "competitive position," New Street's Jonathan Chaplin emailed investors Tuesday. He said the move during the pandemic and down economy could draw political heat, but Charter's providing free service to households with students and teachers and its participation in the FCC Rural Digital Opportunities Fund Phase 1 auction would make it "tough to accuse the Company of unfair pricing policies." The cabler emailed that “Spectrum is committed to continuously enhancing our communication products, providing superior connectivity services with the best overall competitive value in the marketplace. We are delivering faster broadband speeds and improved performance -- all as the average price per megabit per second and per gig consumed declines dramatically.”