Question-and-Answer Session
Operator
Ladies and gentlemen, we will now begin the question-and-answer session. As a reminder, if you have a question please press the "*" followed by the "1" on your touch-tone phone. If you'd like to withdraw your question, press the "*" followed by the "2". If you're using a speakerphone, you will need to lift your handset before making the selection.
Our first question comes from Michael Kelman, with Susquehanna Financial Group. Please go ahead.
Michael Kelman - Susquehanna Financial Group
Thanks. Hi, there is a pretty significant drop-off in Pay-Per-View revenue this quarter on a sequential basis, which was basically offset by a sequential up-tick in VOD revenue and given that the new EchoStar revenue splits were in the fiscal third quarter, I was somewhat surprised by the level of the fall from Pay-Per-View. So I was wondering is this quarterly results just more reflective of the dynamics of the marketplace shifting to more VOD consumption. And if that’s the case should we expect to see the fourth quarter numbers as a good level to assume throughout fiscal 2008?
Karyn Miller
Hi, Mike. Actually what are you are seeing, if you remember correctly our contract wasn't signed till about mid-third quarter. So this is truly the first quarter where we had a full three months of the new contract in place. So that’s why you are seeing (inaudible) the difference in the cable Pay-Per-View revenue.
Michael Kelman - Susquehanna Financial Group
Okay, and in terms of Video On-Demand seeing the up-tick from third quarter to fourth quarter?
Karyn Miller
Ken, you want to take that?
Ken Boenish
Sure.
Karyn Miller
(inaudible) is not here in person, so you have to bear with us.
Ken Boenish
Okay, we have been very busy conducting quite a bit of consumer research with regard to learning more about what people watch, when they watch, why they watch, who they watch where, and we have been using that information to really guide our acquisitions, our programming strategy and our marketing strategy relative to VOD content. And we believe that that is having a big effect on the performance of our product on the platforms.
Michael Kelman - Susquehanna Financial Group
Okay, great. And then in terms of the competitive environment for VOD are you saying increased competition from new players in that space particularly given the lower capital requirements of that business versus actually running a Pay-Per-View channel?
| TRANSCRIPT SPONSOR |
- To read the full transcript on Seeking Alpha, click here »
