MONTREAL – Videotron’s total customer base broke through the 1.5 million mark in 2005, rising to 1,506,000, compared with 1,452,500 in 2004 and 1,424,000 at the end of 2003.
“It was by far the largest increase in the last five years,” rightly crows the press release. “The breakdown indicates a substantial increase in subscriptions to multi-product packages and an ongoing migration from analog to digital TV.”
The startling number is the 163,000 telephony customers the company ended 2005 with – and must be jarring for Bell Canada, especially since it has not yet matched the Videotron’s $15.95 a month entry level pricing.
Quebecor Media-owned Videotron is now the leading provider of Internet protocol-based telephone service in Canada after less than 12 months. Subscriptions to Videotron’s voice service grew steadily throughout 2005. After launching its telephone service in Montreal South Shore and Laval in the first quarter of 2005, Videotron rolled out the product on the West Island (May 25), the Quebec City area (July 11), “where consumer response was particularly enthusiastic,” it said, and the rest of the Island of Montreal (August 17). Videotron began phasing in the service in Montreal North Shore on November 24.
"Our new cable telephone service has been an instant hit since we introduced it at the beginning of 2005," said Robert Depatie, president and CEO of Videotron. "We are particularly pleased by the high level of customer satisfaction. The message from the marketplace is clear: large numbers of consumers were eagerly awaiting a reliable alternative to conventional telephone service.”
Maybe a little frightened of how this might play in Ottawa, Depatie added: “However, it must be borne in mind that our move into residential telephone service has opened only a small breach in a market still heavily dominated by one player."
As for its video product, Videotron saw gains in 2005 like it hasn’t in years. The customer base for Videotron’s illico Digital TV service increased by 42% in just one year and has nearly doubled in two years, closing the year at 475,000, compared with 333,664 at the end of 2004 and 240,863 at the end of 2003.
Videotron’s video on demand service, fed by the company’s film and retail division Archambault Group, was an important factor in illico’s growth. The service logged more than 10 million orders (paid and free) in 2005.
In the fall, Videotron also became the first MSO to premiere a TV series (Nos Etes 2) on VOD before its network broadcast to the general public. Videotron is also the first major cable carrier in Canada to offer films from Warner Bros. on VOD.
On the high speed Internet side, Videotron continued to lead, with more than 656,000 subscribers to its cable and dial-up access services, an increase of 130,000 from the end of 2004 and of 220,000 from the end of 2003.
The popularity of interactive games is booming and continued growth is expected in the segment. In May 2005, Videotron and Reeves Interactive announced the launch of Microplay Online, Quebec’s first French-language networked multiplayer gaming service.
In June 2005, for the first time in Quebec, a major boxing bout was carried live on the Internet, exclusively on Videotron’s High-Speed Zone. In the course of the year, Videotron served up a number of surprises and exclusive offerings on its High-Speed Zone, including Star Academie 2005, Celine Dion, Isabelle Boulay, Ariane Moffatt, Nickelback, Les Trois accords, Simple Plan, Loco Locass and Oliver Jones.
"Delivering the best possible customer experience will remain our top priority at Videotron in 2006," added Depatie.
