Globe Sees Demand for More Video Streaming Services to Support Broadband Business Growth
Public Company Information:
Rising customer demand for video streaming services, amid unabated shift to a digital lifestyle and growing proliferation of connected devices, is expected to support Globe Telecom’s bid to expand its broadband business.
Globe President & CEO Ernest Cu said the availability of video streaming services in the country has been changing the way customers are viewing entertainment content. “The appeal of video streaming is catching up in the Philippines because it allows customers to access their favorite video content anytime, anywhere, on any device,” noted Cu. The current trend is expected to fuel the company’s bid to expand its broadband business, supported by an aggressive 5-year fiber rollout that it initiated last year, he said.
According to Cu, Globe expects home users of internet to switch massively to viewing on demand and streaming services such as HOOQ, Netflix, Tribe, and the like. “We have a great portfolio of entertainment content that allows our customers to do video streaming, putting us in direct competition with pay TV companies. One advantage of Globe is that we have no legacy pay TV on our portfolio to manage conflict with or cannibalize from. We just head on to the next habit that’s forming among Filipinos which is watching TV on streaming services,” said Cu. He added: “The same strategy that we had for our mobile services will be employed for fixed line and that is understanding our customers, how their needs and habits are evolving, and we will cater to them.” The company’s broadband subscribers increased 6% at the end of 2016 to 1.13 million from 1.07 million from a year earlier while smartphone use increased to 61% at the end of 2016.
To support the additional bandwidth requirement necessary for video streaming and to enhance the overall digital lifestyle of its customers, Globe started last year a program to deploy 2 million high-speed broadband lines, with a minimum speed of at least 10 Mbps, within the next few years until 2020. The plan is aligned to its strategy of focusing on broadband services; supporting the company’s initiative to improve internet experience holistically, while redefining the home broadband experience of Filipinos. With a target deployment of 400,000 high-speed lines by the end of 2017, the company plans progressive deployment within the next three years until 2020. More than 260,000 high-speed broadband lines were deployed in 2016.
Following a move to bring more focus on its broadband operations, revenues generated by its broadband business reached P14.5 billion in 2016, a 28% growth from P11.3 billion a year earlier, mainly as a result of sustained expansion of its customer base. The remarkable revenue growth was driven in part by relevant and compelling broadband bundles and packages that include access to premium content, providing customers with complete entertainment experience at home.