Cable's TV empire slipping?


Thread Starter
Supporting Founder
Supporting Founder
Sep 8, 2003
Las Vegas, Nevada
Satellite companies increasing market share, research finds

By Chris Walsh, Rocky Mountain News
March 17, 2004

Led by EchoStar Communications Corp., the nation's two largest satellite-TV providers continued last year to eat away at cable's market share.

Douglas County-based EchoStar, which operates Dish Network, and News Corp.'s DirecTV grabbed an extra 1.82 percentage points of the pay-television pie in 2003, according to research released Tuesday by Bloomberg News.

At the same time, the nation's eight largest public cable companies lost nearly 1 percentage point from their market share.

The findings highlight the intense battle for viewers between cable- and satellite-TV providers. The cable industry has lost 8 percent of its market share since 1998, mainly to satellite.

Several analysts said they expect satellite TV to continue to chip away at cable's empire.

"Satellite has a lower price, it's got better picture quality, and it's got the perception, at least, of better customer service," said Bill Jacobs, a cable and satellite analyst with Harris & Associates in Chicago. "That's why they're able to gain share."

At the end of 2003:

• The nation's two largest satellite-TV firms had 21.64 million subscribers, up 11.8 percent from 2002.

• The nation's eight largest cable companies had 56.36 million subscribers, down 0.3 percent from the previous year.

• Satellite-TV now has roughly 20 percent of the market share; cable has 52 percent.

• EchoStar was the fastest growing pay-TV provider in 2003, adding 1.24 million net new subscribers. It now has 8.69 percent of the market share.

For the entire article click here

Users Who Are Viewing This Thread (Total: 0, Members: 0, Guests: 0)

Who Read This Thread (Total Members: 1)