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SkyREPORT 08/03/2006 - BCE, BellExpressVu Report Strong 2Q

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Today's Headlines:
BCE, BellExpressVu Report Strong 2Q
Time Warner Cable Adds Subs During 2Q
NFL Network Secures All-American Classic
Globalstar's Airtime Promo
News Briefs: Knorr, Keefe Lead ACA Board


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BCE, BellExpressVu Report Strong 2Q


Bell Canada Enterprises (BCE) said its BellExpressVu satellite TV service increased its annual revenues by 21 percent during the second quarter ($286 million) and 23 percent year-to-date to $563 million. The financial growth, the company said, was driven by year-over-year ExpressVu subscriber base growth of 10.2 percent and a $4 increase in monthly average revenue per unit (ARPU).


According to company information, BCE's BellExpressVu - Canada's largest satellite TV service - added 19,000 net new video subscribers during Q2 and 31,000 year-to-date. The company added 63,000 and 92,000 for the same periods in 2005. BCE said the decreases were due to more aggressive price competition from cable and fewer promos in the retail marketplace.


BCE recently announced BellExpressVu's "All in One" plan that combines hardware and programming into one digital package to promote the adoption of its video service nationwide.


The company also said that higher year-over-year churn contributed to "softer net activations" but the video churn rate increased by just .1 percent in both the second quarter and first half of 2006. Total video customer base reached 1.758 million at the end of the three-month period representing an increase of 10.2 percent compared with the previous year.









Time Warner Cable Adds Subs During 2Q


While seasonality may have impacted other pay-TV companies in the second quarter, Time Warner Cable grew its basic customer total during the three-month period.
 

The nation's second biggest cable operator said it added 18,000 basic subscribers during the period, representing the fourth straight quarter of growth and the largest second quarter gain since 2002. The effort took Time Warner Cable's basic subscriber count to more than 11.1 million, of which 1.6 million subscribers were in unconsolidated joint ventures.
 

Digital video subscribers jumped by 171,000 during the quarter for a total of 5.8 million, also marking the largest second quarter increase since 2002, the company said. Digital penetration of basic video cable subscribers reached nearly 53 percent at the end of the quarter.
 

DVR subscribers climbed by 157,000 to end the quarter at 1.9 million, representing 32 percent of digital video customers, Time Warner said. 
 

Residential high-speed data subscribers rose by 230,000 during the period for a total of 5.4 million, representing the sixth consecutive quarter in which net subscriber additions surpassed 200,000, Time Warner said. Digital phone subscribers grew by 234,000 in the quarter to 1.6 million, the fifth straight quarter with growth of more than 200,000 subscribers.

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NFL Network Secures All-American Classic


Just days after Time Warner Cable chop-blocked the NFL Network, the all-football channel acquired multi-year broadcast rights to one of college football's top all-star games, the All-American Classic. Next year, the sixth annual All-American Classic will be played on Martin Luther King Jr. Day at Sam Boyd Stadium in Las Vegas.


The agreement secures the fourth bowl game for NFL Network this year, including the Insight Bowl, Houston Bowl and the Senior Bowl.



The All-American Classic features more than 100 college all-stars competing in an East vs. West format. According to the network, this summer's league-wide NFL training camp had 78 players from this year's Classic.



The NFL Network's growth in programming and distribution lead to the announcement earlier this month its first-ever Sunday night NFL postgame show, NFL GameDay, and its slate of 52 preseason games, plus expanded distribution deals with DISH Network, AT&T and Verizon.


As far as subscribers affected by the Time Warner news, NFL Network officials said they will work closely with both DISH and DirecTV to supply those markets.

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Globalstar's Airtime Promo


Enterprise mobile satellite voice and data service provider Globalstar launched a new promotion here in the States reducing its rate for satellite airtime to nine cents per minute. The promotion is aimed at new customers that activate on of the company's service plans on a new phone.


The limited time promo coincides with Globalstar's plans to ship its eight ground spares satellite to Europe for pre-launch testing now that it has received export approval from the U.S. government. During the promotion, Globalstar said it will lower the cost of airtime to new customers with an opportunity to receive a 50 percent bonus of minutes.


The company is calling the campaign "Countdown and Load Up" and is available on all standard annual and monthly airtime packages. Current lower usage customers will also benefit during the promo by the company dropping rates to 29 cents per minute.

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News Briefs: Knorr, Keefe Lead ACA Board


CABLE -- The American Cable Association (ACA) announced the results of its board of directors' elections. ACA's operator members elected Patrick Knorr, of Sunflower Broadband as chairman of the board and Dave Keefe, of Atlantic Broadband as vice-chair. Six members also elected were Bruce Beard (Millennium Digital Media), Allan Block (Buckeye Cablevision), Doug Fuller (NPG Cable), Jim Gleason (New Wave Communications), Dan Ryan (RPM Group) and Steve Simmons (Patriot Media).


PERSONNEL -- Satellite and wireless research firm NSR appointed Claude Rousseau to analyst, satellite communications. Based in Strasbourg, France, Rousseau will serve the company as a regional and applications expert on satellite communications.


DISTRIBUTION -- Radio e Televisao de Portugal (RTP) signed on with Intelsat as the first major international broadcast customer to launch a direct-to-home (DTH) channel on Intelsat's IA-8 satellite targeting Brazil. RTP, the Portuguese national broadcaster, will use Ku-band capacity on a South American beam to provide DTH applications.

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