HD or Not, It's a Good Time to be Cable

July 27, 2005
Cable companies in the digital era are not only projected to hold their own against fierce competition from DBS and new media, but to more than double their current financial holdings in the next decade, according to a new research study.

Kagan Research finds that cable is more equipped than ever to combat the competition with its ability "to pack its broadband pipe with a host of compelling services [that] will enable the industry to better than double overall revenue from $66.5 billion to $139 billion by 2015."

Kagan projects cable TV--which is steadily pushing current analog subs into DTV services like VOD to HD--will lift "subscriber intake" (monthly bills) from an average of $80 monthly in 2005 to more than $100 by late 2008. With a lock on household penetration that continues to hover around 70 percent, most viewers (at least in North America) eventually will also receive their HD fare from cable, although current cable (non-broadcast originated) choices are extremely limited.

Kagan predicts cable will also excel at providing VOIP phone services and by 2015, "after growing an explosive 18 percent, compounded annually, voice subscribers are projected to reach 29 million, generating $11.7 billion in revenue."

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