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Broadband Pricing Plummets

Light Reading
LR Cable News Analysis
Light Reading
6/7/2011

Here's what's turning cable's crank today.

  • Point Topic Ltd. says the price per megabit on fixed-line broadband continued to fall from the fourth quarter of 2009 to the first quarter of 2011, led by a 40 percent-plus drop in Latin America and a 35 percent decrease in North America. The study suggests that pricing is heading downward in regions where operators originally enjoyed high margins or had been forced to cut pricing because they were "significantly out of step" with rival offers.

  • Cox Communications Inc. is raising rates for basic cable in Hampton Roads, Va., by 20 percent and jacking fees for HD set-tops by 45 percent -- its second rate hike in less than a year.

  • Netflix Inc. (Nasdaq: NFLX) CEO Reed Hastings says TV Everywhere sites from pay TV providers are the biggest competitive threat to his company. But he also views them as a subscription TV complement, noting that the pay-TV industry has added 500,000 multichannel video subs in the last two quarters. (See TV Everywhere Starts Getting Somewhere .)

  • Sony Corp. (NYSE: SNE) claims it has the most popular gaming console for streaming Netflix content, with the PS3 accounting for 30 percent of Netflix streaming usage. (See Xbox 360 to Stream Live TV.)

  • Clearwire LLC (Nasdaq: CLWR) and partners Comcast Corp. (Nasdaq: CMCSA, CMCSK) and Sprint Corp. (NYSE: S) have expanded WiMax service to an additional 10,591 people in Pittsburgh, and to additional 912,000 folks in the Philadelphia area. (See Clearwire Sets Big City 4G Launch Dates .)

  • Entropic Communications Inc. (Nasdaq: ENTR) is staying ahead of Broadcom Corp. (Nasdaq: BRCM) after revealing it has shipped more than 50 million Multimedia over Coax Alliance (MoCA) 1.0/1.1 chips since 2007. On deck: MoCA 2.0. (See MoCA Is Go for 2.0.)

  • Comcast's NBCUniversal LLC sealed a $1 billion deal to take full ownership of two Universal Studios theme parks in Florida.

  • The International Olympic Committee is expected to announce the winner of an auction for the 2014 Olympics Tuesday, after receiving bids this morning from Comcast, Fox and ESPN parent Walt Disney Co. (NYSE: DIS).

  • Blockbuster Canada says Dish Network LLC (Nasdaq: DISH) is threatening to block it from using the Blockbuster logo in an attempt to force the company to sell its assets to Dish. (See Dish Puts Blockbuster to Work.)

  • Cablevision Systems Corp. (NYSE: CVC)'s board approved the spinoff of AMC, IFC, Sundance Channel, and We TV parent Rainbow Media, which will be renamed AMC Networks.

    — Steve Donohue, Special to Light Reading Cable, and Jeff Baumgartner, Site Editor, Light Reading Cable

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    SteveDonohue
    SteveDonohue
    12/5/2012 | 5:02:57 PM
    re: Broadband Pricing Plummets





    Comcast's NBC won the bidding war for Olympic rights, AP reports, striking a $4 billion deal that'll keep the games on the Peacock network through 2020. It'll be interesting to see how Comcast's ownership of NBC will impact its coverage of the Olympics. How much Olympics content will be distributed in VOD? Will Comcast be willing to spend money to shoot the Olympics in 3D? If Comcast isn't willing to shoot the world's biggest sporting event in 3D – and offer most Olympics events in free, ad-supported VOD – what's that say about its confidence in the technology? 


     


     


     

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    SteveDonohue
    SteveDonohue
    12/5/2012 | 5:02:56 PM
    re: Broadband Pricing Plummets


    In official Olympics announcement from Comcast-NBCU, CEO Brian Roberts says the company will "create new platforms and technologies" to distribute the games. Roberts offers no further details on the new platforms and technologies -- assume he's talking about mobile distribution, TV Everywhere Web distribution, VOD, and maybe 3D?&nbsp;


    &nbsp;

    Pete Baldwin
    Pete Baldwin
    12/5/2012 | 5:02:56 PM
    re: Broadband Pricing Plummets


    Heck with technology, I just wanna know if they're going to show events live. (Didn't we have a discussion about that a couple years ago?)


    Overall, I've hated NBC's shmaltzy, piecemeal, features-heavy Olympics.&nbsp; Would have been nice to have seen what ESPN could have done.

    SteveDonohue
    SteveDonohue
    12/5/2012 | 5:02:54 PM
    re: Broadband Pricing Plummets


    I think the exit of former NBC Sports chief Dick Ebersol could see the network move away from producing many of those long features aimed at turning a few U.S. Olympians like&nbsp;Lindsey Vonn and Shawn White into the focus of the entire event. But Comcast-NBC hasn't said if it would deilver more live Olympic coverage than previous years, unlike ESPN, which promised to televise every Olympic event live if it won the TV rights. I'd look for Comcast to charge subscribers additional fees for the privilege of watching live Olympic events on the iPad and other devices.

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