Audio Video News

It's no secret that the cable industry has taken a big hit from satellite services DirecTV and DISH Network. Prospects for growth in the cable industry look decidedly stagnant, except for the "digital cable" segment, expected to grow at an annual rate of 11%, according to projections released September 1 by research firm JupiterResearch.

US cable television subscriber growth should remain flat through 2009, increasing from 73 million households in 2004 to 75 million households in 2009. However, digital cable penetration could grow from 26 million households in 2004 to 43 million households in 2009, a compound growth rate of 11%. To boost migration from analog television, cable operators and multiple system operators (MSOs) will need to focus on those services unique to digital television such as digital video recorders (DVRs) and electronic program guides (EPGs).

MSOs can accelerate digital cable growth by incorporating consumer attitudes toward DVRs into their marketing campaigns, JupiterResearch analysts believe. "The good news for operators is that 70% of consumers are interested in DVR features, and over 75% of those interested in DVRs want to record movies," said Jupiter analyst Todd Chanko. "MSOs should highlight their movie-centric network lineups alongside their DVR promotions to stimulate DVR uptake."

JupiterResearch data gathered for this forecast indicates that EPGs were important to only 29% of those interested in using DVR service, compared to 37% of current DVR owners who found EPGs to be an important feature. "This demonstrates that some of the unique aspects of DTV are not adequately communicated to consumers. EPGs are an effective navigation tool that should be leveraged by MSOs in wooing potential DTV converts," Chanko added.