The number of worldwide cable TV subscribers increased last year but the rate of growth was the slowest in over a decade. Operators are banking on new services to encourage greater uptake in 2004.
In-Stat/MDR claims that annual cable TV subscriber growth was tracking around 3% in 2003, despite a 22% increase in digital subscriptions.
Disappointing growth patterns have been attributed to the economic slowdown in major markets. There is also growing pressure from DTH satellite operators. However, there is hope on the horizon in the shape of new services made possible by the digital revolution.
Expanded channel lineups, Video-On-Demand, HDTV and high-speed data services all have the potential to be valuable revenue sources. The main drawback is cost as cable plants will have to be upgraded to provide these digital transmissions.
The top four countries in terms of total cable TV subscribers are China, the US, India and Germany. In the last three years, the majority of subscriber growth has come from Asia with China and India accounting for 60% of annual subscriber additions.
The North American cable market actually shrank in 2003 as many former cable subscribers switched to satellite or merely dropped the service. However, the region remains key to the development of innovative services and digital cable TV subscribers increased by 20% in 2003.
Despite the slowdown in customer growth and competition from other platforms, In-Stat/MDR is upbeat about the future of cable TV, forecasting that there will be 395 million subscribers worldwide by 2007.
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