A recent report by Leichtman Research Group Inc. (LRG) reveals that the cable MSOs (Multi Service Operators) in the U.S. have successfully maintained their lead over telecom operators in the high-speed broadband (Internet) market.
For the first-time in the 65-year long history of the cable TV Industry, cable MSOs outpaced telecom operators in the high-speed broadband market during the second quarter of 2014. LRG’s report stated that cable MSOs further consolidated their positions in the third quarter of 2014.
According to LRG report stated that 17 large cable TV and telecom operators together had approximately 85.6 million high-speed Internet subscribers at the end of the third quarter of 2014. Of this, cable MSOs command 60% while the remaining 40% were serviced by telecom operators. These 17 large broadband operators together constitute 94% of the total U.S. broadband market.
Over the last six years, the internal dynamics of the U.S. pay-TV industry have been gradually shifting from cable TV offerings toward fiber-based video services of large telecom operators. Moreover, the strong presence of online video streaming providers is posing significant threat to the existing pay-TV business model.
Video offering, the core business area of the cable TV operators, seems to be slipping out of their hands. At this juncture, a strong momentum in the high-speed data market bodes well for cable MSOs. With the deployment of next-generation DOCSIS 3.0 technology, cable TV operators have extensively penetrated into the broadband (high-speed data) market.
In an attempt to capitalize on it, leading cable TV operators including Comcast Corp. (CMCSA), Time Warner Cable Inc. (TWC), Charter Communications Inc. (CHTR) and Cablevision Systems Corp. (CVC) are increasingly emphasizing on the broadband market.
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