The increase of more than $1 billion in annual revenue came in part from cable's continued investments in high-speed broadband networks, new platforms, and services, as it challenges both incumbent operators and new market entrants.
Cable's connectivity-driven growth continued with a 9% increase in broadband revenue and a 5.3% increase in telephony revenue. Telephony and new internet services comprise 50% of total cable revenue. In addition, more than 2.7 million revenue-generating units (RGUs), the industry metric for the sum total of television, internet, and telephony subscribers, were added in 2014, a 2.4% increase, bringing the total to 112.5 million. Despite a net loss of cable television subscribers, total television revenue increased by more than 2% in 2014 as the shift to digital services accelerated. With 6% growth in digital TV revenue and a rise of over 13% in video-on-demand revenue, almost 75% of total TV revenue is now digital.
Manuel Kohnstamm, President of Cable Europe, commented: “Our sector is growing through a period of great change, both in terms of the speed of technological development and the new market entrants. Over-the-top (OTT) providers delivering services via the internet are reinventing business models and shaking up the traditional competitive landscape. Consumers, on the other hand, expect affordable prices, good service quality, and great content. Our smart investments in building better networks are paying off in the form of cutting-edge broadband access and the best experience ever.”
“Cable’s performance in 2014 is particularly impressive in the context of increasing competition from new operators and alongside a new generation of savvy digital consumers,” added Cable Europe CEO Matthias Kurth. “We are the main rival to incumbent telecoms providers in most Member States across Europe.” But we're not just making massive investments to take on traditional competitors; our smart strategy is actually enabling the emergence of new "frenemies" at a time when broadband internet has become a primary mode of content distribution. Our future success will depend on continued investment in technology, infrastructure, and services, a favorable regulatory environment, and deeper partnerships with global content providers.
Equinix selects Infinera Cloud Xpress for data center interconnection in Hong Kong
Infinera announces that Equinix has selected Infinera Cloud Xpress to interconnect its data centers in Hong Kong. Infinera Cloud Xpress offers Equinix a platform with hyperscale density, operational simplicity, and low power consumption.
