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Digital DTH Subscribers To Outnumber Digital Cable Subscribers Through 2003, According To Cahners In-Stat Group
In two new reports examining the cable TV and Direct Broadcast Satellite (DBS or Direct to Home, DTH) markets, Cahners In-Stat Group expects that by 2003, more North American television households will receive digital TV signals via satellite than by cable transmission. Digital DBS services, which were first introduced in 1994, have gained a significant head start on digital cable TV in the race for subscribers. ""Right now, there are 7 million digital cable TV subscribers worldwide,"" said Mike Paxton, industry analyst for Cahners In-Stat Group. ""We expect this number to triple over the next 24 months. While the overall number of cable television subscribers will continue to increase, the rate of growth will be slower than in previous years."" Currently there are 258 million households subscribing to cable TV. By 2003, Cahners In-Stat Group expects the number will increase to 330 million. However, the cable industry will be challenged by a growing DBS presence. ""The U.S. Congress is expected to pass a law that enables subscribers to receive their local broadcast stations via DTH, thereby removing a large competitive advantage held by cable operators,"" explained Michelle Abraham, Senior Analyst with Cahners In-Stat Group. ""We expect millions of frustrated cable customers to take advantage of subsidized equipment offers and make the switch over the next several years."" Cahners In-Stat Group research also forecasts: - China will account for more than 60 percent of cable TV subscriber growth over the next five years. With more than 300 million television households, China will be the priority market for both cable TV programmers and cable equipment providers. - Overall, cable will remain the dominant pay-TV transmission method, but it is being challenged by DBS and fixed wireless. - Digital DBS subscribers are expected to triple between now and 2003. - Sports' programming is an important driver for subscriber acquisition in the DTH market. Interactive services like sports scores, stock quotes, weather reports and e-commerce are also expected to draw subscribers. The reports, The Cable TV Industry: Entering the Digital Era, No. DT9911NW, and Digital DBS Markets & Opportunities: Sports Drives Growth, No. DT9912NW, examine the worldwide cable TV and digital DBS industries, providing regional subscriber forecasts. The cable report profiles regional cable competitors, national MSOs and local telecommunications/broadcast regulations. The digitization of national cable infrastructures and services is also profiled. The DBS report offers regional subscription revenue forecasts, profiles of digital DBS platforms and competitive factors for the countries in which they operate. Cahners In-Stat Group (http://www.cahnersinstat.com) covers the full spectrum of digital communications research from vendor to end-user, providing the analysis and perspective that allows technology vendors and service providers worldwide to make more informed business decisions.