YouSee is the leading Danish cable-TV provider offering its customers TV, broadband and telephony. At year-end 2009, YouSee had 1.2m cable-TV customers, of whom 393,000 also subscribed to broadband and 71,000 to telephony. YouSee's revenue was DKK 3,597m and at year-end 2009, the number of full-time employee equivalents was 1,265. A+ was acquired in 2009, and is included in YouSee's figures from the second half of 2009.
YouSee’s strategy is to consolidate the company’s market position by offering the best TV content and functionalities and superior broadband bandwidth, and increase the number of services used by YouSee customers. The Strategy 2010-12 is centered on five commercial excellence initiatives: defended core, best digital offering, expanded market focus, strengthened broadband position, and film universe.
Services and products
YouSee offers cable TV, landline and mobile broadband, and landline telephony through a fully digitalized hybrid fiber coaxial-cable network, almost fully upgraded with DOCSIS 3.0.
YouSee, with TV as its core business, offers digital and analog cable TV in three standard packages (basic, medium and full) for individual households and organized customers (antenna and housing associations), representing 44% and 56% of YouSee’s TV business, respectively.
The YouSee Plus add-on product provides additional digital TV consisting of HD TV, extra TV packages and on-demand services. On-demand services are VoD with movie rental, TV archiving of previous 30 days' broadcasting on selected channels, start-over and pause and reeling functions. At year-end 2009, 146,000 customers subscribed to YouSee Plus.
The channels in the cable-TV packages are selected with consideration for customer preferences:
- The basic package, which has 207,000 customers, contains primarily free channels from the Danish and neighboring countries' public-service TV stations.
- The medium package, which has 130,000 customers, contains some of the most popular pay channels (mostly Danish) as well as the channels from the basic package.
- The full package, which has 647,000 customers, includes 19 domestic and foreign channels in addition to those offered in the medium package.
- Some organized customers, i.e. large antenna associations representing an additional 153,000 households, receive individually customized content packages from YouSee. And finally, 16,000 customers are reached through YouSee's subsidiaries.
YouSee is the largest TV distributor in Denmark and has a market-leading 68% share of the coax-TV household market in Denmark. YouSee's cable network passes 1.4m Danish households, with a penetration rate of 81%.
Recent development in YouSee's TV services include:
- At TDC Group level (which also includes Consumer and TDC Business customers) the share of the Pay-TV market had risen to 54% at the end of 2009, up 3 percentage points compared with year-end 2008.
- TDC’s purchase of DONG Energy’s fiber network in Copenhagen and North Zealand gives YouSee an exceptional opportunity to offer cable TV to more than 100,000 households in areas that YouSee does not currently cover.
Free digital TV to YouSee customers
To enhance its position as the leading Pay-TV distributor, YouSee removed encryption of the 39 digital TV channels in September 2009 in the three TV packages. This took place one month before the Danish terrestrial analog switch-off on November 1, 2009. Consequently, almost all YouSee cable-TV customers1 have access to both digital and analog unencrypted channels in their TV packages. Unlike most other TV providers, YouSee offers multiroom without set top box and free of charge.
YouSee’s broadband products are flat-rate with customers billed for a fixed monthly subscription with unlimited uploads and downloads.
At year-end 2009, YouSee had 393,000 broadband customers (including A+), and 2,000 mobile broadband customers.
Recent developments in YouSee's Internet services include:
- In 2009, 4 Mbps was the minimum bandwidth offered to YouSee’s customers. On May 15, 2009, YouSee launched 50 Mbps downstream broadband and by the first quarter of 2010, a broadband speeds of 100 Mbps will be available to all homes passed by YouSee.
- YouSee increased the penetration rate among customers with YouSee cable-TV subscription from 29% to 34% during 2009.
YouSee offers VoIP with a quality of service that ensures a voice flow of the same quality as traditional landline. The product is a combined prepaid flat-rate subscription and consumption-based product.
At year-end 2009, YouSee had 9,000 PSTN/ISDN customers, and 62,000 VoIP customers. YouSee's landline customer base is increasing.
The cable network
YouSee has a fully digitalized network operated from one central head-end station in Copenhagen that provides playout for the entire network. It currently covers 55% of Danish households.
The head-end station also serves as a base for TDC’s offerings of HomeTrio and Mobile TV and provides cable-modem provisioning and network management control servers for IP products. TV is transmitted digitally through TDC’s domestic backbone network to 32 remote hubs where digital video streams are distributed via the HFC network to end customers. TV sets with integrated or set-top-box digital cable receivers are needed to receive the digital services. In many cases, the last few hundred meters of the HFC network are owned by landlords or organized customers.
High-speed broadband services are terminated and delivered to TDC’s IP core network from the same 32 hubs. The HFC networks owned by YouSee are nearly completely return-path upgraded. YouSee has upgraded approximately two-thirds of the customer-owned network. HFC networks will be able to carry up to 5 Gbps of digital content. The current allocation is 1 Gbps for digital TV, 0.5 Gbps for TV on demand and VOD and 0.5 Gbps for DOCSIS. Almost all modems operate according to the DOCSIS 2.0 standard. YouSee has rolled out the additional downstream capacity required for DOCSIS 3.0 modems. As of December 1, 2009, DOCSIS 3.0 modems have been the standard for new customers. During 2009, YouSee expanded its upstream capacity by utilizing the full frequency spectrum up to 65 MHz. This enables YouSee to offer end-users high-speed data services of up to 100 Mbps.