Michelle Clancy ©RapidTVNews | 21-07-2011
AT&T added 202,000 U-verse TV subscribers during the second quarter of 2011, driven by strong performance in its IPTV business lines.
The additions bring AT&T's total subscriber base to 5.3 million, or 21.5% of households served. Overall penetration for the IPTV service is 25% in areas where it's been available for 36 months or more. ARPU for U-verse triple-play customers stood at $170, up 8.3 percent year-over-year.
"We are seeing encouraging signs in wireline revenues," said Chairman and CEO Randall Stephenson said on the earnings call.
Cable continues to lose ground to satellite and IPTV. One reason could be that fiber-based IPTV service allows operators to more easily roll out multiscreen strategies like AT&T's U-verse mobile app, which it recently expanded to Android devices. The ability to easily wrap in bandwidth-intensive new digital features is an advantage over its cable competitors that it can take in a number of different directions, according to new research from Infonetics.
"Our latest IPTV survey confirms that IPTV services are entering their next phase as operators move beyond basic video offerings and begin providing consumers a highly personalised, highly integrated and portable on-demand viewing experience," said Teresa Mastrangelo, directing analyst for video at Infonetics Research. "Multi-screen viewing, interactive applications and social networking are some of the services expected to be implemented over the next year."
AT&T reported consolidated revenue of $31.5 billion, up more than $680 million, or 2.2 percent, year-over-year.