Summary
Shaw Communications, located in Western Canada, experienced an increased in profits of 3% from its cable and satellite divisions. Furthermore, the company had anticipated a decline in profit for their cable business for the upcoming year. However, revenue forecast for the cable division dropped to 2.2 percent from where it was last year. Additional, the company’s resources for 2012 were $550 million, which was slashed to $450 million. According to the article, “The Calgary-based Company is fighting a difficult battle against Vancouver-based telecoms company Telus Corp, which is assertively promoting a rival TV service”. The company’s plan for a cellular network was canceled, thus giving Telus an advantage. Shaw lost $45,564 existing cus customers, despite a gain of more than 46,564 additional new customers. Internet and home phones subscribers rose.
Opinion
Cable companies today are struggling to keep subscribers
because there are many other alternatives out there such as, Netflix. Netflix
is cheaper, compare to cable. Their monthly fee is $8.00 for unlimited
movies, compare to cable prices ranging from $60 to $130 monthly packages, as
you must purchase channels already in a bundle as there is no choice you must purchase the bundles whether your want to or need.
Questions
1 Do you have
cable, satellite or Netflix?
2 Why can’t cable companies give us the choice to choose
whatever channels we need?
Reference
Reference
Shaw communications sees weakness at cable unit. (2012, April 13). Financial post. retrieve from
http://business.financialpost.com/2012/04/13/shaw-communications-sees-weakness-at-cable-unit/?__lsa=840a-cffcphoto retrieved from https://www.google.ca/search?q=shaw+profits+photo&biw=1600&bih=777&source=lnms&tbm=isch&sa=X&ei=yOs9VP-pNMqmyATlhILoDA&ved=0CAcQ_AUoAg
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