& cplSiteName &

Scoring Big With Cloud DVR

Alan Breznick
9/11/2015
50%
50%

If you think that cloud DVR service can't make much of an impact on the pay-TV landscape, then take a good look at Spain.

Over the past 21 months, Telefónica has climbed to the top of the charts in the Spanish pay-TV market, thanks at least in some measure to its rollout of network DVR service. In fact, the telco IPTV operator now boasts more than 2 million video customers in its home country, having nearly tripled its video subscriber total since launching its new cloud-based service in December. That puts Telefónica ahead of its four closest pay-TV rivals in Spain, which include the nation's biggest cable operator, ONO , Digital+, Orange Spain and GoTV.

Besides attracting new customers to its IPTV platform, Telefónica has also generated great enthusiasm among its subscribers with its cloud DVR offering, as detailed in a new white paper produced by Heavy Reading and sponsored by Alcatel-Lucent (NYSE: ALU). In February, the latest month for which figures are available, the IPTV operator reported that its number of cloud DVR users had actually quadrupled over the previous four months. As a result, nearly half of its video subscribers were already using the service a little more than a year after it was introduced.

"Cloud DVR has been one of the building blocks of our market proposition and certainly our most successful service on IPTV so far," Roberto Porras, brand manager of Moviestar TV for Telefónica, told Heavy Reading for the paper. "It's one of the most used features by our customers."

Plus, in a survey conducted by Telefónica, an impressive 80% of its network DVR users said they were tapping into the service "very often." How many other pay-TV providers can claim that kind of frequent usage for one of their new video services or applications?

"It's a big jump," Porras said. "We couldn't have imagined that incredible increase in usage in a few months' time."

Like Comcast Corp. (Nasdaq: CMCSA, CMCSK) in the US, Telefónica does not charge video subscribers anything extra for its cloud DVR service. Instead, it bundles the service as part of two bigger Moviestar TV content and communications services bundles, one that costs €65 ($73.37) a month and comes with 50 hours of storage and a bigger package that costs €73 ($82.40) a month and comes with a whopping 350 hours of storage.

Telefónica does not break down how many subscribers take the cheaper Moviestar TV package and how many take the pricier option. But it seems pretty clear that both bundles, aided by the popular new cloud DVR service, are finding their mark.

Porras credits the initial success of the network DVR offering to several factors, including its "accessibility," flexibility, new user interface and much lower capital costs. By relying on the cloud to do the heavy lifting, Telefónica can beam the service to all its video subscribers without needing to install new set-top boxes or upgrade their current set-tops. It can also add new features and make other service changes much quicker than before, when it offered a traditional set-top-based DVR service.

Like Comcast,Telefónica has no plans to monetize its basic cloud DVR service directly, at least not yet. But, with its overall video subscriber numbers soaring, the Spanish IPTV provider appears pretty content right now.

In a sign of its satisfaction, Telefónica introduced a more advanced cloud DVR service, called Cloud Catchup, in April. This premium service automatically records all programming on all TV channels over a seven-day period. So customers can catch up with any shows they may have missed over the last week.

In the white paper detailing Telefónica's rollout, Heavy Reading offers up a number of tips for other service providers thinking about launching their own cloud DVR services. The list is too long to go through here. But, if nothing else, Telefonica's early success proves one point -- it can pay to have your head in the clouds.

— Alan Breznick, Cable/Video Practice Leader, Light Reading

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
danielcawrey
50%
50%
danielcawrey,
User Rank: Light Sabre
9/11/2015 | 7:18:48 PM
On Demand
I had thought that the idea of "Cloud DVR" was somewhat past its prime. Don't people just want on demand services now? What's the point of recording things that technically have already been recorded by the content providers? No wonder people are moving to streaming services. 
More Blogs from Breznick Unbound
In a sign that Google Fiber has all but abandoned ship even in its existing markets, the Alphabet unit reports notably slower video subscriber growth in the second half of 2016.
Despite strong sales of 4k-ready TV sets, the emergence of UHD content and some progress on technical standards, several obstacles remain for the UHD transition.
Whether it's the new DOCSIS 3.1 spec or the forthcoming Full Duplex DOCSIS spec, cablecos are still mainly counting on DOCSIS to rule the broadband space.
Google unit spells out plans to launch its own OTT skinny bundle service for $35 a month but will face stiff competition in an increasingly crowded market.
Two Wall Street analysts have now concluded that Verizon stands to gain much more from marrying Charter than vice versa.
From The Founder
Either we perform a complete 'factory reset' on the way the telecom industry creates and deploys virtualization, or we face the consequences.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Custom TV
The Urgency of Commercial 5G Services

4|26|17   |     |   (0) comments


The progress of 5G has been closely monitored in the industry. At the 2017 Brooklyn 5G Summit, the sense of urgency for a commercial 5G launch had started to surface among operators.
Women in Comms Introduction Videos
How Diversity Helps Comcast Mirror Its Customer Base

4|26|17   |   2:55   |   (0) comments


Diversity brings innovation, creative ideas and a way to reflect the broad spectrum of your customer base, Comcast Director of Customer Experience Jenelle Champlin says.
LRTV Huawei Video Resource Center
Mobile Operators & Video

4|25|17   |     |   (0) comments


Ovum's Ed Barton discusses the latest mobile operator strategies for mobile video.
LRTV Custom TV
Infinera Introduces Instant Network

4|20|17   |     |   (1) comment


Mike Capuano, vice president of marketing at Infinera, discusses the advancement from Instant Bandwidth to new Instant Network capabilities, which include Bandwidth License Pools, Moveable Licenses and Automated Capacity Engineering (ACE).
Women in Comms Introduction Videos
Vodafone's Eubank on Sponsors, Mentors & Moving On Up

4|19|17   |   4:25   |   (0) comments


Vodafone America's Head of Operations Kimberly Eubank breaks down the difference between a sponsor and a mentor and shares why both made a big difference in her career.
LRTV Custom TV
NYC Auto Show: Are We Smart Yet?

4|18|17   |     |   (0) comments


The auto industry is facing some big transformations as electric vehicles, autonomous technology and connected cars are seen as the future of the industry. During the much-anticipated NY international auto show, there was an emergence of new technology and mobility service on the show floor. Aside from performance, brands like Lincoln, Hyundai, Honda, Mercedes and ...
LRTV Huawei Video Resource Center
The Impact of Video

4|18|17   |     |   (0) comments


David Mercer from Strategy Analytics discusses the impact of video on current strategies.
LRTV Custom TV
Pardeep Kohli Discusses Network Transformation & the Market Opportunity for the 'New' Mavenir Systems

4|13|17   |     |   (0) comments


In a brief discussion at MWC 2017, Heavy Reading analyst Adi Kishore talks to Pardeep Kohli, CEO, Mavenir Systems about the creation of the 'new Mavenir' and some of the key challenges facing operators in today's market. A key theme of the discussion centers around operator need for software-only, virtualized solutions and how they will need to adapt to ...
Women in Comms Introduction Videos
Tech Maverick Shares Her Tips for Gender Inclusivity

4|12|17   |   7:28   |   (0) comments


Wendy Hall Bohling, a corporate escapee, author and gender exclusivity consultant, tells her story of sexism, bias and progress along the road to gender equality in the workforce.
LRTV Huawei Video Resource Center
Huawei at MWC 2017

4|11|17   |     |   (0) comments


At Mobile World Congress 2017, the biggest mobile industry gathering of the year, Huawei showcased its new innovations and solutions with the theme "Open Road," which focuses on cloud, 5G, operation transformation, videos and consumer-oriented products. Its campaign has been recognized by three awards given by GSMA.
LRTV Custom TV
China Telecom NFV Infrastructure on RSD

4|6|17   |     |   (0) comments


Lynn Comp, senior director of market development of Intel, is joined by Chong Zhang, storage engineer at Inspur and Ou Li Yan, architect for technology strategies of China Telecom, for a discussion of what NFV brings.
LRTV Custom TV
Nokia's IMPACT Software Demo

4|6|17   |     |   (0) comments


Khamis Abulgubein of IoT market development at Nokia demonstrates IMPACT (intelligent management platform for all connected things), a software solution with a horizontal approach to managing any device on any application.
Upcoming Live Events
May 15-17, 2017, Austin Convention Center, Austin, TX
May 15, 2017, Brazos Hall - Austin, TX
May 15, 2017, Austin Convention Center - Austin, TX
June 6, 2017, The Joule Hotel, Dallas, TX
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Surprise! AT&T Markets 4G Advances as '5G Evolution'
Dan Jones, Mobile Editor, 4/25/2017
Did Verizon Outbid AT&T for Straight Path?
Dan Jones, Mobile Editor, 4/25/2017
Netflix Set to Enter China
Mari Silbey, Senior Editor, Cable/Video, 4/25/2017
First Year TIPs the Scale Toward Success
Denise Culver, 4/24/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
TEOCO Founder and CEO Atul Jain talks to Light Reading Founder and CEO Steve Saunders about the challenges around cost control and service monetization in the mobile and IoT sectors.
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.