Worldwide cable surging

Cable TV operators are slowly growing their base worldwide but more importantly are improving their reputation for service, according to In-Stat’s annual survey of cable operations. Worldwide, the growth in households is modest but there is a more significant growth in service revenues, with cable modem service becoming a cash cow for cable operators.

The combination of cable modem sales, advanced video offerings and, especially in the U.S., VoIP sales is helping fuel much higher average revenues per user (ARPU), said Mike Paxton, In-Stat analyst. In addition, he notes, consumers are viewing cable companies as more credible service providers.

“They have very much more credibility among consumers,” he said. “Their reputation for providing service is improving – of course, it is coming up from being pretty poorly thought of.”

In some locations, including Korea, Japan and Western Europe, Paxton said, cable companies have gotten aggressive in addition new services and improving customer service as well.

“In the U.S., the scale is much greater for cable,” he said.
The annual report, “Worldwide Cable TV Markets; Cable Modem & Video Subscribers,” identified 355 million cable TV households out of the 1.2 billion TV households globally, up from 349 million at the end of 2005. China has the most cable TV households with 106 million, with the U.S. second at 69 million. Cable modem service revenues are on track to hit $26 billion this year, up from $22 billion a year ago.