Providers will take advantage of bundling and expand their services to gain new customers
Los Angeles, CA (PRWEB) July 16, 2012
The Cable Providers industry is expanding by charging higher rates for services and providing consumers with an array of programming content and interactive options. IBISWorld expects revenue to grow at an average annual rate of 1.4% to $55.6 billion over the five years to 2012. However, the industry faces significant competition from emerging technologies, like online video that consumers can substitute for industry-distributed TV, according to IBISWorld industry analyst Kevin Boyland. This trend is slowing new cable subscriptions as the market moves toward saturation. As a result, revenue will contract 1.3% in 2012. Nevertheless, the number of cable subscribers has increased at an average annual rate of 2.1% to total 113.0 million over the five years to 2012. As a result of competition and stringent regulations, the number of industry establishments has decreased at an average annual rate of 3.1% to total 6,992 over the five years to 2012. In response to intense competition, the industry has invested heavily in infrastructure and marketing, which is expected to pressure profit down in 2012. One example of rebranding was Time Warner Cable's unveiling of a new logo and identity in late 2010. Time Warner has also invested in developing new technologies: in early 2011, it was the first company to debut an iPhone application to stream live TV.
This industry is expected to benefit from the continued, albeit slow, rise in overall subscribers. Households that migrate to new digital cable services are generating robust growth for the industry. The bundling of a number of telecommunications services, including telephone and high-speed cable internet services is also helping this migration, Boyland says. However, basic cable subscriber numbers are declining due to high market penetration and market shifts. IBISWorld forecasts industry revenue will grow in the five years to 2017. The Cable Providers industry is expanding by charging higher rates for services and providing consumers with an array of programming content and interactive options.
The industry has a medium level of concentration. In 2012, the top three players in this industry are expected to generate almost half of the industry's revenue. The share of industry revenue and subscribers varies among individual operators due to their respective shares of lower-priced basic service subscribers to higher-priced premium subscribers. Additionally, many large firms in the industry attract subscribers by offering bundled voice, video and data services together as one product; offering an array of different services necessitates a large infrastructure and support staff and generally precludes smaller, less-established operators. For more information, visit IBISWorld’s Cable Providers in the US industry report page.
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IBISWorld industry Report Key Topics
This industry comprises firms engaged as wired, third-party distribution systems operators for broadcast programming. These operators deliver television programming received from cable networks or local television stations to consumers via cable infrastructure on a subscription basis. Companies in this industry may also earn revenue by renting equipment. This industry does not include satellite TV providers, internet service providers or voice over internet protocol (VoIP) services.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.