Prism IPTV growth is strong, however 3Q revenues should be lower according to CenturyLink, says Technology Industry Analyst Jeff Kagan
Atlanta, GA (PRWEB) August 13, 2014
CenturyLink, the third largest local phone company after AT&T and Verizon is ramping up it’s TV footprint with 16,000 Prism subscribers. However the company also forcasts lower third quarter revenues, according to FierceTelecom, Aug. 7.
Industry analyst Jeff Kagan offers comment.
IPTV is one of the big and relatively new growth opportunities the nations local phone companies now offer. AT&T Uverse, Verizon FiOS and CenturyLink Prism are television services that are delivered using the Internet and are called IPTV.
“We have been seeing local phone companies attracting new customers away from the traditional cable television and satellite television world. The economics, the quality and the quality service are a big attraction for many customers. Many customers simply have had enough of the cable television company,” says Technology analyst Jeff Kagan.
“I have been watching the cable television industry losing market share to new competitors like this over the last few years. In fact I remember during an AT&T analyst meeting last December they gave an example which showed that in markets like Dallas, AT&T Uverse had more than 50 percent market share. That’s impressive for AT&T, but is very troublesome for the cable television industry,” says Tech analyst Kagan.
“Performance like that in a competitive marketplace means the television marketplace is being rewritten. New companies and new technologies are competing with the traditional cable television industry and are really shaking things up. Companies like Comcast, Time Warner Cable, Cox and others are at risk of losing more business unless they can turn things around,” says Telecom analyst Kagan.
“We are watching new competitors really do strong business in the television sector. That’s because the cable television industry never cared about the customer before. Now they do since the customers are leaving. However most are really having a problem changing long held customer beliefs,” says Wireless analyst Kagan.
CenturyLink performance with their Prism IPTV added nearly 16,000 customers and increasing the penetration of the more than 2.1 million addressable homes to approximately 10 percent.
CenturyLink also lost 2,100 broadband customers.
“That means parts of CenturyLink business are growing and other parts are shrinking. The new technology service offerings like IPTV are showing growth and the older technology like POTS and data services are giving way to competition from others in the marketplace like wireless and VoIP service providers,” says Principal analyst Kagan.
“I think generally speaking, CenturyLink is dealing with the changing industry pretty well. However they really need to increase revenues of new services as they lose revenues from existing services,” says Kagan.
“This is a transformation and it is important to stay ahead of the wave. They also need to get into new business opportunities. An area that CenturyLink has not been moving as quickly as AT&T and Verizon,” says Kagan.
About Jeff Kagan
Jeff Kagan is an industry analyst, consultant, columnist, author, speaker and futurist. He shares his opinion in many ways over 25 years. Helping to understand our changing world, technology, industry and competition.
He is regularly quoted by the media. He offers comment to reporters and journalists on wireless, telecom, Internet, cable television, IPTV and other tech news stories.
Kagan is known as a Technology Analyst, Tech Analyst, Wireless Analyst, Smartphone Analyst, Telecom Analyst, Telecom Industry Analyst and Principal Analyst.
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Full Disclosure: Jeff Kagan is an independent industry analyst. He offers comment to the media on breaking news, announcements, technologies and the changing marketplace. He also writes columns and press releases offering comment, and is an author and speaker. He also works on a consulting basis sharing his opinion.
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