Rogers 2013 Annual Report Download - page 47

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MANAGEMENT’S DISCUSSION AND ANALYSIS
Higher Operating Revenue
Overall Cable revenue grew 3%this year compared to last year, the net
result of:
• continued growth in subscribers for our Internet and phone products
• the May 2013 acquisition of Mountain Cable
• partially offset by television subscriber losses.
Lower Television Revenue
Revenue from television was 3%lower this year, compared to 2012,
the net result of:
• the year-over-year decline in television subscribers
• the impact of promotional and retention pricing activity associated
with heightened pay TV competition from IPTV offerings
• partially offset by pricing increases during the year and the acquisition
of Mountain Cable.
We continue to offer competitive strategic bundling and retention
initiatives to transition portions of the subscriber base to term contracts.
The digital cable subscriber base represents 84%of our total television
subscribers, compared to 80%at the end of 2012. We believe that the
larger selection of digital content, video on-demand, HDTV and PVR
equipment combined with the ongoing analog to digital conversion
initiative continues to contribute to the increasing penetration of the
digital subscriber base as a percentage of our total television subscriber
base.
Higher Internet and Subscribers
Internet revenue increased by 16%in 2013, compared to last year, the
result of a larger Internet subscriber base, general movement to higher
end speed and usage tiers and changes in Internet service pricing. The
increase was also affected by the timing and mix of promotional
programs.
Our Internet customer base is approximately 2.0 million subscribers, and
Internet penetration represents:
•92%of our television subscribers, compared to 84%for 2012
•49%of the homes passed by our cable network; or the same as
2012.
(IN MILLIONS OF DOLLARS)
CABLE TOTAL REVENUE
2013
2012
2011
$3,475
$3,358
$3,309
(IN MILLIONS OF DOLLARS)
CABLE SERVICE REVENUE BREAKDOWN
2013
2012
2011
$498
$477
$478
$1,159
$998
$926
$1,809
$1,868
$1,878
TelevisionInternetPhone
2013
2012
2011
1,961
1,864
1,793
49%
49%
48%
(IN THOUSANDS)
INTERNET SUBSCRIBERS AND INTERNET
PENETRATION OF HOMES PASSED %
2013
2012
2011
1,789
1,768
1,777
84%
80%
77%
(IN THOUSANDS)
DIGITAL HOUSEHOLDS AND DIGITAL PENETRATION
OF TELEVISION CUSTOMERS %
2013 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 43