At this point, everyone I’m tracking has reported earnings on the quarter. Let’s see how they did. As a reminder, the video entertainment marketplace is changing quickly. Company financial reports help predict who will be able to fund new initiatives and where the customers are flocking.
|The New Generation|
|Netflix||Earnings: $1.11 / share
Revenue: $0.79 B
|Earnings: $1.26 / share
Revenue: $0.79 B
|Apple||Earnings: $5.63 / share
Revenue: $24.52 B
|Earnings: $7.79 / share
Revenue: $28.6 B
|Amazon||Earnings: $0.34 / share
Revenue: $9.36 B
|Earnings: $0.41 / share
Revenue: $9.91 B
|The Old Guard|
|Comcast||Earnings: $0.41 / share
Revenue: $13.81 B
|Earnings: $0.37 / share
Revenue: $14.3 B
|Time Warner Cable||Earnings: $1.16 / share
Revenue: $4.93 B
|Earnings: $1.24 / share
Revenue: $4.90 B
|AT&T||Earnings: $0.60 / share
Revenue: $31.33 B
|Earnings: $0.60 / share
|Verizon||Earnings: $0.55 / share
Revenue: $27.43 B
|Earnings: $0.57 / share
Revenue: $27.5 B
Some specific notes from the linked articles:
- Netflix got beat up for their price increases, but expects subscribers to get over it in a few quarters.
- “Cable companies have been losing subscribers to satellite TV services for years, and more recently, to phone-company TV services. They’ve kept their revenue growing by raising prices every year and adding new services like digital video recorders.” – Yahoo News
- Apple knocked the ball out of the park by selling everything. Lots of new iDoodads out in the marketplace. There was a vague allusion to how they’re going to bring some more neat stuff to iTunes videos.
- Amazon’s great quarter is attributed to digital media distribution (eBooks, music, video)
- Time Warner “lost 130,000 residential video subscribers while gaining 54,000 residential broadband customers and 32,000 home phone users in the period ended June 30, according to a statement today.” Time Warner is seeing erosion of their cable business.
- AT&T made $4.9 billion in the wireless unit, but their other businesses, including U-verse TV, pulled down the net income.
- Verizon has changed out CEOs. Their new one used to run Verizon wireless. They made their quarter on wireless subscribers. No word on traditional TV services.
So, we see a few trends here:
- Cable companies are seeing increases in data delivery mechanisms (wireless and/or landline internet) and decreases in cable TV like services
- Although Verizon & AT&T are dabbling in TV, their money is made providing wireless internet and voice.
- Online media distribution is growing rapidly
- Apple still prints gold
This is the story of a market that’s about to change how it thinks about the world. The question is who will fight it, and who will lead it. Especially important to watch will be how Netflix weathers the price change storm and how the cable companies respond to the “low end” competition from streaming video.
Next quarter, I’ll roll a few more companies like Disney, a content house, and Chartered, another cable company.