Along with continued losses in DTT, KPN suffered its biggest ever quarterly loss in TV customers in Q2, research from Telecompaper shows. Market leader Ziggo also lost customers, but showed the smallest drop in nearly five years.
KPN lost a net 21,000 subscribers in the three months to June, including 7,000 in IPTV and 14,000 at its digital terrestrial service Digitenne. While the DTT losses are in line with the steady decline in popularity of the service, this is the first quarterly loss in IPTV ever at KPN, according to Telecompaper.
“KPN’s losses are likely in part due to its decision to end the Telfort brand,” said Kamiel Albrecht, Telecompaper analyst for the TV and broadband markets.
“However, this is only part of the story, as the overall consumer pay-TV market is in structural decline, as young people especially rely less on traditional TV services.”
Market leader Ziggo shed only 1,300 TV subscribers in Q2, the smallest loss since it merged with UPC at the end of 2014. The losses were largely in analogue and basic digital services, as the company nears completion of the shutdown of its analogue cable service. The regions Gelderland and Utrecht switched to all-digital in Q2, and the northern provinces followed shortly thereafter in July.
“The rationale of the Ziggo-Vodafone merger appears to be correct: Ziggo is performing relatively well in a difficult market thanks largely to its fixed-mobile offers,” said Albrecht.
“Ziggo still has potential to grow among Vodafone customers and could even manage a return to positive customer growth once it completes the analogue shutdown later this year.”