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Year End 2007 - Sector Insights: Video & Entertainment
Cable Companies Ready to Take on IPTV?
Today's quickly-evolving digital landscape is offering better, faster, and cheaper video services to customers.  Whether it is a satellite provider offering 100 channels of digital TV or an incumbent telco offering fiber-centric IPTV services, cable MSOs are feeling the heat. 

Cable MSOs no longer have a natural monopoly on subscription video services, and they must address a growing number of market trends and drivers in order to avoid having their core revenue source whittled away by much better capitalized rivals.  More specifically, cable video providers must expedite their efforts to completely digitalize their networks and deploy innovative technologies to enable higher levels of symmetric bandwidth to both residential and business subscribers. 

And why is this important?  Because today’s cable video subscriber demands an advanced and highly personalized television experience that includes creature comforts such as HDTV capability, VOD, time shifting, and diverse channel content.  In short, contemporary television viewers seek to replicate the PC experience and are looking for service providers who can accommodate these capabilities. 
The "Big Five" Cable MSOs
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Total Cable Revenues ($millions): (2004-2010)

                    Source: New Paradigm Resources Group, Inc.
Video-Specific Basic Cable Revenues ($millions)
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Looking Ahead

The cable carriers have weathered a series of competitive shocks during the past few years, from FCC mandates, to disputes with broadcasting companies, to threats from competing cable overbulders; but, they are no longer adopting reactive strategies to competition to their video subscriber base. As cable MSOs make the necessary changes to their networks and adopt more product-centered business and operational strategies, they can once again become the dominant provider of state-of-the art video services. While they will be forced to ward off challenges from satellite and telco TV providers, cable operators stand to be well-positioned over the next few years to grow both their video subscriber base as well as their video-specific revenues.

Contact Us

For more insights into where the Video & Entertainment Providers are now and where they are heading, please call us now at (312) 980-7823 or send us an email at info@nprg.com.  Our new Continuous Information Services offers client-customized portals which give clients accurate, current, and actionable information and analysis, including the ability to request specific research needed to stay competitive.

 

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