The number of digital cable subscribers in the US is set to exceed 20 million in the first quarter of 2003, according to a study from the Leichtman Research Group.
The report claims that digital cable is poised to take over from Direct Broadcast Satellite (DBS) as the most popular method of accessing multichannel TV. However, the industry faces the dual challenge of retaining subscribers and enticing new customers at a time of receding growth.
“The major cable operators in the United States now deliver digital cable to about 30% of all subscribers, yet the industry added fewer digital subscribers last year than in 2001,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc. “To maintain growth of digital cable, operators will need to offer more reasonably priced step-ups from analogue cable, and continue to add value to the digital cable offering via new channels and services like on-demand TV and HDTV.”
The Leichtman survey found that digital cable subscribers spend on average over $56 per month on cable television, 50% more than analogue subscribers. In additon, 28% of digital cable subscribers have signed up for broadband internet services from their operator.
About a quarter of those who have ever had digital cable no longer subscribe to the service and of former digital cable subscribers, some 40% no longer subscribe to cable TV at all. Approximately 15% of those who have never had digital cable are very interested in subscribing to the service, but more than half (54%) say that they have not chosen to get digital cable because it is too expensive.
