In the face of stiff competition from direct broadcast satellite (DBS) pay-TV services, says Cahners In-Stat, the US cable television industry is focusing on the delivery of a “package” of digital services to consumers. These services include digital video service, cable modem service and cable telephony service.
In order to provide these services, US cable TV operators have spent over $30 billion in the past two years to upgrade their network infrastructure. According to In-Stat, whilst some leading cable multiple systems operators (MSOs) have succeeded in upgrading the majority of their cable systems, cable industry capital expenditure is still forecast to exceed $15 billion in 2002.
“Although the cable industry has never been known for rapid innovation or for embracing cutting-edge technologies, it has done an admirable job of provisioning digital cable services to households across the country,” says Mike Paxton, senior analyst at In-Stat.
Even as digital cable services become more widely available, there is still plenty of room for US digital cable service subscriber growth, says In-Stat. A recent survey by the company highlights that the current median penetration rate for digital cable service subscribers is only around 25% of all cable TV system subscribers.
