Cable Operators Losing Video Share to Satellite, Telcos

  • Broadband Revenues
CAMPBELL, CA — Pay-TV subscribers are abandoning cable companies for satellite and especially telco providers, according to market research firm Infonetics Research (http://twitter.com/infonetics)

Infonetics analyst Diane Myers notes, “Considering that revenue from video services will rival that of voice services by 2014, one of the more interesting trends going on in the residential services market is the number of video subscribers that are jumping from cable to satellite and telco IPTV. In 2010, residential cable video subscriber numbers are flat, while satellite video subscribers have been increasing slowly but surely over the last few years, and telco IPTV subscribers are up 40 percent from last year. Video services are proving to be a hard-fought battle. While cable operators have a legacy in North America, they have been unbending in their pricing policies, and as a result are losing record number of subscribers to less expensive alternatives.”

In 2010, telecom service providers will collect $245.5 billion from North American households subscribing to voice, video, and Internet access services, a 2.1 percent increase in revenue over 2009. Infonetics expects the residential services market to grow to $270 billion in 2014. Revenue from voice services will decline and revenues from broadband access and video service will increase.

The number of residential mobile broadband subscribers in North America is nearly doubling in 2010 over 2009, to about 15 million, and is forecast by Infonetics to jump to 70 million by 2014.

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