It’s been just under two weeks since Verizon gave its Fios Custom TV bundles a makeover, but CFO Fran Shammo said at a Tuesday investor conference the company is already seeing positive results.
According to Shammo, the Custom TV service only had a take rate of about 33 percent before the changes. Now, he said, that number has increased to around 40 percent.
Shammo said there has also been an uptake in the number of add on packages sold with the base bundles.
Verizon’s Custom TV service, which originally included seven bundle packs, now offer two basic packages with add-on options. Base bundles include an “Essentials” option with a variety of popular and kids content as well as a “Sports and More” option with a lineup of sports channels featured alongside popular non-sports channels like Cartoon Network, CNBC and TNT. Add-on packs include the Movie Lovers Pack, the Kids Teens and Family Pack and the Global Sports Pack.
In his comments, Shammo predicted an increase in conflict between cable and “linear” providers, but said Verizon is in a position to walk the line between the two with its Fios and go90 products.
Shammo also said Verizon views much of its current wireline footprint as “under penetrated” and said the company still has room to produce positive additions in both its TV and broadband products.
Shammos comments come on the heels of a fourth quarter earnings report in which Verizon said it added 99,000 net new Fios internet connections and 20,000 net new Fios video connections. Connections totaled 7 million for Fios internet and 5.8 million for Fios video at the end of 2015, representing year-over-year increases of 6.3 percent and 3.2 percent, respectively.