Globo Cabo sub count dips

Economic slowdown cited as cause

RIO DE JANEIRO — Brazil’s leading pay TV operator Globo Cabo said its subscriber base fell to 1.5 million homes in the third quarter, down 2.6% from the previous quarter.

Globo Cabo attributed the decline to the economic slowdown, which has affected the performance of other multisystem operators.

Compared to a year ago, the third quarter results edged up just 1.3%. Globo Cabo said its annualized churn rate jumped to nearly 25%, compared to 20.1% in the second quarter and 15.3% a year ago.

“The main reason for disconnections was once again the economic slowdown, as 40% of them were related to financial and personal reasons,” Globo Cabo stated in a report.

Globo Cabo’s Internet broadband service Virtua, launched in early 2000, held steady from quarter-to-quarter. Third-quarter subs for Virtua totaled 48,388, up 1.2% from the second quarter, but over three times as many subs as it had a year ago.

Globo Cabo said Virtua’s service quality was improving and that calls to its customer-service line fell 23% compared to the second quarter and 52% compared to the third quarter of last year.

But Virtua’s penetration is still very low at just 3.3% of Globo Cabo’s subscribers.

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Biz News from Variety