Cable Industry To Double Revenue in Ten Years
New 10-year projections released today by media business consultants Kagan Research point to bright prospects for the cable industry despite the ever-mounting threat from satellite and the expected future entry of Baby Bells into the competitive fray.
(PRWEB) July 30, 2004 -- According to Kagan Research Senior Analyst Robin Flynn, cables burgeoning arsenal of revenue-generating services positions the industry to more than double overall revenue from $60 bil. in 2004 to $138 bil. by 2014. Kagan's just released 10-year projections for the cable industry include newly developing revenue streams, such as HD and all-digital tiers, and expectations of significant upside opportunities for cables entry into the commercial services sector.
At the same time, cable's monthly residential revenue per sub could nearly double from $72.60 in 2004 to $139.10 by 2014. Basic cable subs can be expected to register moderate growth, from a base of 66.2 mil. in 2004 to 72.4 mil. by 2014.
Cable's expanding list of advanced services -- digital video plus digital enhancements, high-speed data and voice -- will drive revenue growth going forward, contributing 40%, or $48 bil., to cable's overall residential revenue ten years out.
Kagans 10-Year cable study provides data and analysis of:
(1) cables digital video segment, including incremental revenue from digital tiers and churn-busting digital enhancements such as VOD, DVRs and HD.
(2) the transition to all-digital as cable moves to recapture its analog spectrum to alleviate bandwidth constraints arising from the expansion of cable's menu of services.
(3) cable's prized residential high-speed data segment and the growth of home networking.
(4) the industry's ever-expanding voice business, including circuit-switched and VoIP footprints and the outlook for cable's ability to boost telephone sub counts.
(5) cable's opportunities in the commercial services space where revenue prospects are substantial.
Kagan's latest 10-Year projections are published in Cable TV Investor, a Kagan expert intelligence newsletter covering public and private cable TV values, cable operations, deals and finance.
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