Swedish cable operator Com Hem has seen a big reduction in churn and an increase in digital TV growth since it began offering customers the TiVo set top box, the company said in a 4Q 2014 earnings report.
Com Hem began deploying TiVo in October 2013 and sold 38,000 of the STBs in Q4 2013. It added 32,000 in the past quarter, bringing total TiVo users to 164,000. The company said the TiVo penetration into its subscriber base now stands at 27%, up from 22% in Q3.
Com Hem reported churn had decreased to 14.2% in the quarter, down from Q3’s 14.8% and Q2’s 16.4%.
“We are particularly pleased by the continued reduction in customer churn,” said Com Hem CEO Anders Nilsson. “The pace of improvement reflects early successes for our intensive focus on improving our customers’ experience.”
While churn has helped reduce customer acquisition costs, Nilsson gave additional kudos to TiVo — which includes a Netflix app – for helping to drive digital growth.
Nilsson said, “accelerated growth in digital television was driven by our leading TiVo offering.”
Com Hem said its broadband business continued to grow with customers increasingly moving to higher speed tiers. In the quarter, Com Hem added 17,000 broadband subs, compared to 15,000 adds a year ago.
“These improvements combined have resulted in increased momentum in revenue growth, with total revenue up 10.4%, of which the organic growth was up 4.3% compared with the corresponding quarter last year,” Nilsson said.