IPTV Programming Featured Article

Multi-channel Video Market Still Growing

By Gary Kim, Contributing Editor

U.S. multi-channel video services are expected to grow moderately at about a 2.1 percent rate over the next five years, reaching 108.5 million households in 2012, says SNL Kagan.

 

Although market penetrations are reaching a ceiling, the total number of multi-channel households is expected to increase, with multi-channel subscribers accounting for nearly 89 percent of TV households in the latest five-year outlook.

 

The digital broadcast TV transition in February 2009 will increase multi-channel subscriptions, but without generating a large-scale migration. SNL Kagan estimates that 10 percent of over-the-air households will opt for multi-channel service providers, with cable receiving the majority of converts and satellite and telco splitting the remainder.

 

Competition from satellite and telcos obviously will increase over the forecast period. SNL Kagan estimates that cable’s market share will drop from the current 64 percent to 59 percent in 2012. Telcos are expected to make the biggest strides, jumping from three percent to nine percent penetration.

 

Gary Kim (News - Alert) is a contributing editor for TMCnet. To read more of Gary’s articles, please visit his columnist page.

 

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