Updates on an Emerging Web TV Market
Apple plans to price its Web TV service at $30–$40 per month. HBO Now, an Internet streaming service, is $15 per month, and Netflix provides its video streaming service for $7.99–$11.99 per month.
During its 1Q15 earnings call, Dish stated that it would focus on Sling-TV’s $20 price point and add genre tiers to retain its content flexibility.
On June 23, the FCC announced that it started its review of the proposed merger of Time Warner Cable with Charter Communications, valued at $78.7 billion.
The FCC fined AT&T $100 million for concealing facts about its unlimited wireless data plans. The FCC claimed that AT&T sold unlimited data plans, but capped data speeds after customers used 5 GB of data per billing cycle.
The FCC’s net neutrality rules ban ISPs or wireless service providers from blocking or slowing down Internet traffic, or from providing priority delivery of traffic for certain content providers.
A merger between AT&T and DIRECTV would also allow AT&T to bundle broadband Internet access and voice services with DIRECTV’s video services.
Comcast is the largest pay-TV provider in the US, with ~22.4 million video subscribers at the end of 1Q15. Its market capitalization as of June 23 was $153.1 billion.
Dish announced its results for 1Q15 on May 11. The company reported revenues of $3.7 billion for the first quarter, compared with $3.6 billion for 1Q14.
T-Mobile has invested heavily in the expansion of its 4G LTE network, with a capital expenditure of $982 million in 1Q15—up from $947 million in the same quarter last year.
The merger discussions between Dish Network and T-Mobile are in the formative stages, and the details of the impending deal have not yet been worked out.
Chinese consumers find bigger screens more engaging and vivid. Plus, carrying a larger smartphone eliminates the need for tablets, especially smaller tablets.
Xiaomi has had to adopt a different marketing model in India, where Internet penetration remains relatively low. Print advertising is still essential there.
Micromax is currently the second-largest Indian smartphone player after Samsung. Alibaba, China’s largest e-commerce player, is said to be investing up to $950 million in the company.
Oracle has been struggling to accelerate its revenue growth. Its fiscal 2015 revenues remained unchanged YoY, while they declined by 4% in fiscal 4Q15 on a quarterly basis.
In its fiscal 4Q15 earnings release, Oracle stated that it paid out ~80% of its free cash flow, equivalent to $2.3 billion, to investors through dividend payments.
In fiscal 2015, Oracle spent ~13% of its total revenue on R&D. Microsoft and SAP spend ~12%–13% of their funds on R&D, and IBM allocates 5%–7% of its revenue to R&D.
In its fiscal 4Q15 earnings release, Oracle continued to draw attention to its transition toward and focus on its cloud business.
In its fiscal 4Q15 earnings release, Oracle stated that its Engineered Systems business continued to post double-digit growth.
Oracle’s support and maintenance revenues account for nearly half of its total revenues. Continued growth of this revenue segment is crucial to Oracle’s growth.
On June 23, Oracle announced more than 24 new cloud offerings for its Oracle Cloud platform. It appears that Oracle is allocating a majority of its R&D to the cloud space.
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