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Kagan Research reports that despite a slight erosion of Cable TV's penetration rate over the next decade in the face of satellite TV, "cable revenue from residential subscribers is expected to grow from $68.2 billion in 2006 to $120 billion in 2016." This expansion is largely due to the growth of broadband Internet, telephony and VOD subs as well as the upswing in local advertising dollars.
According to Kagan:
"That doesn't include additional revenue from business customers (see Oct. 19 Kagan INSIGHTS free at kagan.com). The gains are expected despite penetration for cable TV video services as a percentage of all residential TV households slipping slightly from 58.6% this year."
More Excerpts:
"Cable telephony and high-speed cable modems get the most attention among add-on cable services. But the list is much longer: digital video recorders, high definition channels, video on demand and interactive TV."
"'Cable thrived despite stiff competition from satellite TV for a decade,' notes Robin Flynn, senior analyst with Kagan Research. 'Now telcos have arrived too, but cable is bulked up and remains well positioned. Competition increases, but so does the revenue pie with these additional services.'"
"Buoyed by the growing service menu, average revenue per (cable subscriber) unit including all services is expected to climb from $87.04 per month in 2006 to well over $140 by 2016. While consumers pay more, they also get more services. And not all of that ARPU increase comes from residential subscribers. Cable TV's local advertising—a component of ARPU—is fast growing. Kagan databook Cable Futurecast 2006 forecasts net local cable ad billings will increase from nearly $4 bil. this year to $9.6 bil. by 2015."
"Even the slight decline in cable residential penetration forecast for the next decade is not dire. The number of total TV households is growing, so cable's headcount will still rise slightly. 'We estimates multiple system cable operators are on track to recapture a little more than 160K basic subs in '06, a trend we expect to continue in the coming years,' notes Cable TV Investor: Deals & Finance ."
Advertising Age - CBS to Stream Prime-time Shows Through Innertube
Excerpts:
Just weeks after ABC touted the success of its online rebroadcasts of first-run shows, CBS has followed suit and will offer several of its top prime-time shows online, through the network's broadband channel, Innertube. The network will offer up "CSI," "CSI: Miami," "CSI: NY," "NCIS," "Survivor" and "Numb3rs," along with newcomer "Jericho."
Guardian Unlimited Business | | MTV hooks up with Google
MTV is to supply segments of its programmes to the thousands of websites and blogs affiliated with search giant Google.
MySpace a launch pad for next-gen media biz
Excerpts:
It's too soon to know the future of paid content downloads on MySpace, having recently launched its first offering: $1.99 downloads of the Fox series "24," sponsored by Burger King. However, paid search represents a considerable revenue-generating opportunity for MySpace and a search partner.
News Corp. sculpting bold plan for growth
Excerpts:
News Corp. in the past 12 months has been forging media's future by buying and riding the likes of social networking leader MySpace.com and video gamer IGN to meteoric heights while also enjoying record performance levels at its core broadcast and cable television, film and print operations, even as they struggle to reinvent their business models.
Advertising Age - MediaWorks - MRI: DVRs Are on the Rise
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