Telco TV Payback?
Many of those declines were courtesy of cable's triple-play prowess. Are the tides beginning to turn?
Consider the most recent quarterly results of several companies. Both Verizon Communications Inc. (NYSE: VZ) and AT&T Inc. (NYSE: T) had solid quarters for video and broadband growth. In fact, Verizon had its best quarter on record for net new FiOS TV and broadband adds. Additionally, wireline losses, while still significant, did slow for both in 4Q08.
Contrast that with Time Warner Cable Inc. (NYSE: TWC)'s 4Q08 results. TWC witnessed significant declines in growth for just about every metric, including digital video, broadband, and voice, and registered a net loss of $13.9 billion (which included a $14.8 billion impairment charge).
It's certainly too early to declare a definitive shift in the triple-play war towards telcos. But the battle looks to be getting a little more interesting.
— Bernardin Arnason, Managing Partner, Pivot Group , and Chairman, TelcoTV 2008