Analysis of the conditions for profitability, in view of market development forecasts
Key economic factors for operators
- analysis of the financial state of a selection of operators: US, France,
the UK, Northern Europe
- key operating factors: TO and ARPU, operating costs, balance sheet, investments
and financing
- utility and pay-TV: two operating structures
- lessons to be drawn from and limits of international comparisons
Conditions for cable’s profitability
- maximising or increasing subscriber bases
- new services, broadband internet access: prospective TO, associated costs,
operating economies
- evolution of programming costs: channels’ advertising revenues, TV licences
- impact of consolidation: economies of scale, cost effectiveness
Is it possible to be profitable?
- Cable’s economic efficiency compared to its competitors’: TV (Cable,
Satellite, DTT), Internet (Cable, ADSL)
- What penetration rate will allow new services to break even?
- How many operators?
Conclusion: possible scenarios for the future
Presentation
• Which strategies should cable operators adopt in the face of an uncertain
market?
- tough financial conditions, especially in Europe
- increasingly fierce competition between satellite, DTT and ADSL
• What are the key factors in terms of profitability?
- increasing ARPU: a top priority
- the profitability of new services: digital TV, VOD and broadband Internet
- can programming costs be cut ?
- the impact on operators’ economies
• What are the possible scenarios for restructuring networks?
- necessary improvements to operating conditions
- clustering strategies
- financial restructuring
• In-depth economic analysis, a real decision-making tool
• Key operating data (ARPU, Churn etc.) and reference data by country
• A profitability analysis based on an exclusive model developed by IDATE,
taking into account the determining factors in cable operators’ results.
