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Satellite and Fiber Optic TV Pose Growing Threat to Cable

7:10 am on April 1, 2007 | Category: Telecom Services, Television, Wireless Technology

The cable industry has an uphill battle on its hands in maintaining dominance of the American pay-TV market, according to the Television Bureau of Advertising’s latest analysis of Nielsen Media Research statistics.

Satellite TV providers, which have long been incumbent cable companies’ biggest competitors, now serve 25.2% of American TV households, while cable’s share of the market has dropped to 61.3%, its lowest level in over 15 years.

Telecom providers, meanwhile, are aiming to add a new dimension to subscription TV, with the launch of fiber optic video services. Verizon’s FiOS television offering is off to a head start in this area, serving 207,000 subscribers throughout the United States.

Although their market shares remain minuscule compared to the market as a whole, services like FiOS and AT&T’s U-verse are luring a growing number of customers with the promise of low rates and advanced features.

â€œWeâ€™re looking at an industry that is in the middle of redefining itself. The competitive battle is just starting,â€ commented independent telecom analyst, Jeff Kagan.

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