ABS-CBNmobile, a partnership between the Lopez family and Ayala-led Globe Telecom Inc., said it is capitalizing on the strength of Channel 2 to entice subscribers to continue and develop the habit of using ABS-CBNMobile content in their mobile devices.
“In the coming months, you’ll see a campaign in ABS-CBN and ABS-CBNMobile that would actually generate usage of ABS-CBNMobile together with the contents of ABS-CBN,” Aldrin M. Cerrado, ABS-CBNMobile chief financial officer, told reporters on the sidelines of the company’s announcement of its 2014 financial results.
ABS-CBNmobile ended 2014 with over 1.5 million subscribers. Beyond traditional voice and text services, it allows users to watch ABS-CBN programs on their smartphones through iWantTV.
“We did say that our break—even [for]ABS-CBNMobile is 2 million subscribers with average revenue per user (ARPU) of P135, so that’s the same guidance as last year,” Cerrado said.
According to the company, they need 10,000 new subscribers a day to reach their target in terms of subscriber base.
“Given that base, that’s about 3 million subscribers,” Rolando Valdueza, ABS-CBN Group CFO said.
Earlier, the company projected it would need 2 million subscribers to break even, but now it has raised that target to 3 million subscribers because ARPU has declined.
ABS-CBNmobile is operated by ABS-CBN Convergence, the mobile telecom unit of ABS-CBN Corp. ABS-CBN bought capacity from Globe for its mobile services under a five-year contract.
ABS-CBN Convergence invested about P3 billion to roll out its mobile services.
“At the end of the day, the differentiating factor of ABS-CBNMobile is the content that it delivers to the subscribers anytime and anywhere,” Cerrado said.