Study: New Services Bring New Revenue


Expanded services such as high-speed data and digital video have helped North American cable operators to more than double their average revenue per subscriber in the past five years, according to a recent study by In-Stat (a sister company to Multichannel News).

The report also found that worldwide revenues for cable-modem services exceeded $18 billion in 2004, up from $14 billion in 2003. According to In-Stat, there were 42 million worldwide cable-modem subscribers at the end of 2004, up from 31 million at year-end 2003.

As far as digital cable, worldwide subscribers reached 42 million at year-end 2004, up 20% compared with 2003. North America accounted for 27 million of those subscribers, In-Stat said.

“These expanded digital services are allowing cable operators to differentiate their services from competing telecommunications and pay TV service providers," In-Stat analyst Mike Paxton said in a prepared statement.

“In effect, cable-modem service and digital-cable-video service are permitting the creation of a compelling service bundle that attracts new customers to cable-TV services while helping to keep existing customers from changing their service provider,” he added.