SATELLITE POSES THREAT TO CABLE OPERATORS

CONSUMER information group Strategic Analytics have warned that cable operators, particularly in Europe, are still failing to respond to the growing threat from satellite-based multi-channel interactive services.
According to the latest research from Strategy Analytics, providers of information and insight which help competitors develop strategies in consumer electronics and media, 65 per cent of all new digital television customers worldwide chose a satellite-delivered service last year, compared to only 31 per cent who opted for cable. Digital terrestrial TV accounts for only four per cent of the current market share.
The warning is presented in a study entitled ‘Interactive Digital Television: Worldwide Market Forecasts’ and published recently by Strategy Analytics within their strategic advisory service, The Interactive Home.
In total 20.5 million homes switched to digital TV in 2000. Satellite's share of new digital customers actually increased slightly in 2000, to 65 per cent from 64 per cent the year before, while cable's share fell from 32 per cent to 31 per cent. The remainder is accounted for by digital terrestrial TV operators, who took four per cent in each year.
Strategy Analytics predict that cable will regain some momentum in 2001, as growth in some leading satellite services slows down and European cable operators place renewed emphasis on digital cable offerings.
This year, Strategic Analytics predict that cable will account for 40 per cent of new digital subscriptions worldwide, compared to 55 per cent for satellite. (CD