A recent analysis by Leichtman Research Group Inc. revealed
that the cable TV operators in the U.S. are gradually losing
their hold in the pay-TV market. Internal dynamics of the pay-TV
market is slowly shifting toward fiber-based video offerings of
large telecom operators. Video offering is the core business area
of the cable TV operators, which is slipping out of their
Litchman stated that 9 large cable TV operators including
Time Warner Cable Inc.
) together lost a whopping 555,000 video subscribers in the
second quarter of 2013, up 2.8% year over year. Satellite TV
) together totaled a loss of 162,000 subscribers in the same
quarter. Whereas, telecom giants
Verizon Communications Inc.
) jointly gained 373,000 subscribers, up an enormous 35.6% year
Cable MSOs currently hold less than 54% of the total U.S.
pay-TV market share, while satellite TV operators hold less than
36% and telecom operators hold close to 11% market share.
Litchman further stated that 13 large cable TV, satellite TV and
telecom pay-TV operators collectively lost 344,000 video
subscribers in the second quarter of 2013, up 5.9% year over
In order to counter the loss of video offerings to telecom
operators, the cable MSOs have decided to focus on the small and
medium sized business (SMB) segment, which is one of the core
areas of telecom operators. Various industry researches estimate
that the SMB segment is expected to offer a $20 billion to $30
billion market opportunity.
Significant growth in business data and video traffic resulted
in an unexpected future growth catalyst. Furthermore, managing
wireless backhaul traffic for the mobile towers also opened up a
multi-billion dollar market. Cable operators are now gradually
offering innovative wireless broadband services to their business
customers in order to maintain this momentum.
COMCAST CORP A (CMCSA): Free Stock Analysis
DISH NETWORK CP (DISH): Free Stock Analysis
DIRECTV (DTV): Free Stock Analysis Report
AT&T INC (T): Free Stock Analysis Report
TIME WARNER CAB (TWC): Free Stock Analysis
VERIZON COMM (VZ): Free Stock Analysis Report
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