English Entertainment
Q3-16: DIRECTV mitigates AT&T U-Verse TV subscriber numbers fall
BENGALURU: AT&T acquired DIRECTV added 323,000 net subscribers and hence helped mitigate the company’s Entertainment and Internet Services Group (Entertainment) segment’s loss of 326,000 U-Verse subscribers for the quarter ended 30 September 2016 (Q3-16, current quarter). About 70 percent of DIRECTV net additions were consumers transitioning from U-Verse says the company. The Entertainment Group ended the quarter with 25.3 million (2.53 crore) video subscribers. Further, the company says it has added 156,000 broadband subscribers during the current quarter.
However, the total number of video connections of the Entertainment Group were slightly lower than the 25.4 million connections in Q3-16. At September 30, 2016, Entertainment had approximately 51.0 million revenue connections, compared to 52.6 million at September 30, 2015,
Total revenues of the segment were $12.7 billion ($1,270 crore), up 17.1 percent versus the year-earlier quarter mostly due to the acquisition of DIRECTV. Also contributing to the gain was continued growth in consumer IP services informs the company. Video and Ad sales constitute about 70 percent of the Entertainment Group’s revenue, IP Voice/Data about 19 percent legacy and other revenues the balance 11 percent. Broadband revenues were up 5 percent in the quarter with IP broadband growing by 12 percent. AdWorks has grown to a $1.5 billion ($150 crore) annualized revenue stream with double-digit revenue growth year to date and strong margins.
Consolidated Numbers
AT&T’s consolidated revenues for the third quarter totaled $40.9 billion ($4,900 crore) , up 4.6 per cent versus the year-earlier period due to the July 24, 2015 acquisition of DIRECTV. Excluding the impact of the DIRECTV acquisition and foreign exchange, revenues were essentially flat, as growth in video and IP-based services mostly offset pressures from declines in wireless and legacy services. Compared with results for the third quarter of 2015, operating expenses were $34.5 billion ($3,450 crore) versus $33.2 billion ($3,320 crore); operating income was $6.4 billion ($s 640 crore) versus $5.9 billion ($590 crore) ; and operating income margin was 15.7 percent versus 15.2 percent. When adjusting for $0.14 of amortization, $0.03 in merger- and integration-related costs and $0.03 of employee-separation costs, operating income was $8.3 billion ($830 crore) versus $7.9 billion ($790 crore); and operating income margin was 20.3 percent, consistent with the year-ago quarter.
Third-quarter net income attributable to AT&T totalled $3.3 billion ($330 crore) or $0.54 per diluted share, compared to $3.0 billion ($300 crore), or $0.50 per diluted share, in the year ago quarter. Adjusting for $0.20 of amortization, merger- and integration related costs and other expenses, earnings per diluted share was $0.74 compared to an adjusted $0.74 in the year-ago quarter.
Time-Warner takeover
As mentioned earlier, AT&T plans to take over Time Warner in a blockbuster $85.4 billion ($8,540 crore) that will completely change the media landscape, A Senate subcommittee responsible for competition will hold a hearing in November 2016. Media reports say that the announcement of the deal has raised concerns in the US, ‘with lawmakers, analysts and advocacy groups closely watching to see if the union, or any that follow in its wake, poses harm to consumers’ says a New York Times report.
According to a BBC report, a spokesman for the Democratic presidential candidate Hillary Clinton has said there were “a number of questions and concerns” about the deal that regulators needed to scrutinise, but added “there’s still a lot of information that needs to come out before any conclusions should be reached”.
The BBC report further alleges that Republican candidate Donald Trump has said that he would block the merger if he wins, because it was “too much concentration of power in the hands of too few”.
English Entertainment
ZEE5 UK partners Narrative Entertainment to add UK channels
Six FAST channels added as platform sharpens hybrid play in Britain
LONDON: ZEE5 UK struck a first-of-its-kind deal with Narrative Entertainment, bringing mainstream UK television channels onto an Indian streaming platform as it pushes to deepen its footprint in a crowded, mature market.
The partnership adds six of Narrative’s FAST channels to the service, including Great! Movies, Great! Romance, Great! Mystery and kids brands POP, Tiny Pop and POP UP, widening ZEE5 UK’s appeal across genres and age groups.
The move reflects a clear shift in strategy. ZEE5 UK is betting on a hybrid model that blends on-demand content with curated, always-on channels to drive discovery and increase time spent on the platform.
“This partnership represents a meaningful evolution in how we serve audiences in mature markets like the UK, where viewers are defined by habits, convenience and choice rather than geography or language alone,” said Parul Goel, territory head, Europe, Zee Entertainment. “By bringing trusted mainstream UK channels together with our premium originals, movies and kids’ content, we are building a more consumer-centric platform that simplifies viewing while increasing depth and relevance.”
Fateha Begum, commercial director, Narrative Entertainment, said the tie-up would fuel growth for both sides. “Our portfolio of quality programming, with such wide and enduring appeal, is a perfect complement to ZEE5 UK. This is a strong partnership that will support growth for both parties, and we share Zee Entertainment’s vision of an increasingly partnership-led future for the industry.”
ZEE5’s global library spans over 4,000 films and more than 500 originals, with over 130 new titles added annually. The addition of Narrative’s channels strengthens its kids offering and introduces genre-led linear experiences alongside its on-demand catalogue.
The deal also gives Narrative access to ZEE5 UK’s fast-growing user base, extending reach without diluting brand identity, while reinforcing ZEE5 UK’s network of more than 40 live channels.
As streaming wars intensify, ZEE5 UK is widening its playbook, blending content, convenience and partnerships in a bid to win screen time in one of the world’s toughest markets.
