The cable industry's growth prospects are going to depend on selling more services to existing customers rather than on significantly adding to basic subscriptions
Monterey, Calif. (Vocus) October 24, 2007
In the just-released Cable Futurecast: A 10-year Detailed Outlook For Cable TV Industry Revenue Streams, SNL Kagan projects that overall residential cable revenue will top $121 billion by 2017, a 77% increase from 2006 levels of $68.6 billion.
SNL Kagan's research indicates that residential revenue per subscriber will increase to an average of $143 per month by 2017, a 64% jump from 2006 levels. The addition of commercial services and other incremental revenue are expected to push the total revenue mark to $109 million annually by 2011 and $138 million by 2017. That's up from $72 million in 2006. The revenue gains are expected despite anticipated declines in cable's domestic video market share in the increasingly competitive multichannel space.
"The cable industry's growth prospects are going to depend on selling more services to existing customers rather than on significantly adding to basic subscriptions," said senior analyst Ian Olgeirson.
Advanced services on the digital video and IP platforms are expected to fuel growth. Digital video subscriptions are expected to jump to 56 million by 2011. The rise of digital penetrations above 80% of basic subscribers will open the door for additional video-on-demand, DVR, HD and other interactive services.
Cable Futurecast: A 10-year Detailed Outlook For Cable TV Industry Revenue Streams compiles SNL Kagan's cable forecasts in one place and serves as an industry guide for the next decade. The report contains analysis of core video, data and telephony services. It also includes the outlook for the commercial services sector and an examination of the impact of churn, as well as puts into perspective the competitive landscape for cable, satellite and emerging telco video operators.
SNL Kagan provides this comprehensive 10-year outlook for cable services exclusively as part of the SNL Kagan Information Service. For more information on this report and other media & communications data sets within the SNL Kagan Information Service, call 866-296-3743 or e-mail SNLKaganSales @ snl.com.
About SNL Kagan
SNL Kagan is the ultimate resource for complete financial intelligence on the broad and dynamic media & communications sector, including the broadcasting, cable, entertainment, motion picture, telecom, wireless, satellite, publishing and new media industries. The SNL Kagan suite of products integrates breaking news, comprehensive data and expert analysis into an electronic database available online and updated around the clock. SNL Kagan combines the 38-year heritage of Kagan Research with parent company SNL Financial's 20 years of experience in providing essential guidance to Wall Street and to America's top corporations. For more information, visit http://www.snlkagan.com.
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