HDTV: One of many digital cable services increasing ARPU
March 16, 2005
Digital cable TV services such as HDTV, video-on-demand (VOD), personal video recorders (PVRs), high-speed data and telephony services are helping cable operators to boost their Average Revenue Per Unit (ARPU), according to a survey of operators by In-Stat.
In-Stat polled 50 different cable TV systems, representing a balanced mix of operator sizes and market locations. Seventy-eight percent of the cable operators surveyed reported an increase in ARPU over the past 12 months. In addition, the respondents reported that more than 90 percent of their subscribers now have access to digital cable services.
In-Stat’s survey also has found that:
Twenty-seven of the respondents already have at least 10 percent of their subscribers taking HDTV services; Twenty-three respondents are just beginning to bundle services, and they reported that less than 10 percent of their current subscribers take a bundle of at least two services. Thirteen respondents have more than 10 percent of their subscribers currently taking a bundle, usually digital video services and high-speed data. Twenty respondents said CableCARDs offer no benefit to either their businesses or cable systems. Forty-six respondents said their local cable TV system would be able to do well in head-to-head competition against their local telephone company, and believe that their product mix and local services will help them to hold their own in the future.
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