At the end of March 2011, 57% of Telenet’s TV subscriber base had switched to digital TV, with the number of digital TV subscribers reaching 1,286,800. The total number of TV homes was 2,253,700, representing a loss of 20,300 basic cable television subscribers during the first quarter.
In the first three months of 2011, Telenet added 47,800 net new subscribers to the Telenet Digital TV platform after a strong push in Q4 last year, when the company achieved 74,200 net additions.
In a statement, the company said: “Although our net organic loss trend continued to show an improvement compared to the prior year period, churn in Q1 2011 picked up compared to previous quarters. Apart from typical seasonal patterns in our business, we attribute the increase to the intensely competitive environment in the TV market with consumers now having the choice between a wide range of TV providers ranging from cable, IPTV and satellite to DTT in the near future and OTT, whilst at the same time basic TV prices remain one of the lowest within a wider European context. Given the historically high level of cable penetration in our footprint, the limited expansion of the number of homes passed and the availability of competing digital television platforms, we anticipate that the number of basic cable TV subscribers will continue to decline moderately.”
In Q1 2011, Telenet’s basic cable television revenue amounted to €79.9 million, a 2% decrease compared to the prior year period as a result of an average lower number of basic cable TV subscribers. Telenet’s premium cable television revenue increased €8.0 million, or 23%, in Q1 2011 as compared to the prior year period and reached €42.9 million.