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Cable Losing Market Share But Finding Digital Service

23 августа 2006
Although cable TV service continues to lose market share to satellite, digital services are steadily getting more intrenched. New research is showing digital cable has increased 11 percent with industry-wide penetration jumping from 30 percent last year to 41 percent today.

According to a report released Wednesday from J.D. Power and Associates, the increase in digital service usage is being fueled by greater availability of digital video, data and voice bundling options.

Currently, the firm said, 29 percent of U.S. households subscribe to satellite service alone (up two percent from 2005) while 58 percent of homes subscribe only to cable (down from last year's 60). With additional one percent of households subscribing to both cable and satellite services, a total of 88 percent of U.S. subscribers have either or both, the company said.

"Digital service is the key for consumers in taking advantage of the aggressively marketed triple-play bundle of digital video, voice and internet services," said Steve Kirkeby, executive research director at J.D. Power. "With analog cable subscribers increasingly converting to digital, this becomes a major advantage for cable companies in the race against satellite providers to maintain market share." Plus, the analyst said, increased popularity of bundled services is another contributor to a decrease in monthly payments for cable subscribers.

The report also factored in the "significant" increase of DVR usage over the past year. Thirty-eight percent of cable subscribers and 25 percent of satellite subscribers report that they are using DVRs supplied by their provider, while another 24 percent of customers report using TiVo as their DVR, the company said.


Source: SkyREPORT E-News

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