US Cable TV Operator Survey: "Multi-Play" Services Improve ARPU

Table of Contents

• Executive Summary
  • Fifty Respondents "Answered Our Call"
  • All Four Key Market Segments Included
  • All Sizes Of Systems Participated
  • Penetration Of Digital Services Improving, With Room To Grow
  • Available Bandwidth Is Above 750 MegaHertz For Most
  • High-Speed Data (HSD) Via Cable Modem Continues To Grow
  • High Definition TV And PVRs Are The "Hot" New Services
  • Bundling Helps Make Cable A Preferred Telecom Provider
  • Average Revenue Per Unit (ARPU) Is Improving
  • CableCARD Devices Are Being Supported, But Attitudes Are Mixed
  • Capital Expenditures Trend Appears To Be Flat
  • Video Services From Competing Local Telephone Companies
• Methodology
  • Previously Published Reports That Provide Forecasts And More In-Depth Analysis
• Overview: The US Cable TV Industry
  • US Cable Industry Statistics
  • Forget the Triple Play, and Quadruple Play, We Now Have A "Multi-Play" Of Multiple Services
• The Hierarchy of Our Presentation
• Overview Of Key System Characteristics
  • Fifty Respondents Represent A Good "Mix" Of The Industry
  • Relative Market Ranking Of Local Cable TV System
  • Number of Basic Cable Subscribers In Local System
  • Annual Subscriber Growth Of Local Cable System
  • Number Of Net New Subscribers During Past 12 Months
  • Number Of Net Fewer Subscribers During Past 12 Months
• Digital Cable TV Services Snapshot
  • Subscribers With Access To 2-Way Digital Cable Services
  • Actual Subscribers To Digital Cable TV Services
• Channel Allocation Summaries And Future Prospects
  • The Importance Of Individual 6-MHz Video Channels To A Cable TV System
    • Bandwidth Available On Main Cable Trunk
    • Number Of Headends Connected In Your Cable TV System
    • Number Of 6MHz Channels On Main Cable Trunk
    • Number Of 6-MHz Channels Available For New Uses
    • Number Of 6-MHz Channels Available In 12 Months
    • 6-MHz Channels In Use For Analog Video Services
    • 6-MHz Channels In Use For Digital Services
    • 6-MHz Channels Expected For Digital Services In 12 Months
    • 6-MHz Channels In Use for Video On Demand Services
    • 6-MHz Channels for VOD in 12 months
    • 6-MHz Channels In Use For High Definition TV Services
    • 6-MHz Channels For HDTV in 12 Months
    • 6-MHz Channels In Use for Cable Modem Services
    • 6-MHz Channels For Cable Modems in 12 Months
    • 6-MHz Channels In Use for Telephone Services
    • 6-MHz for Telephone Services in 12 Months
• Cable Modem Data Services
  • Percent Of All Cable Subscribers Using Cable Modem Services
  • Percent Of Cable Modem Subscribers That Are Businesses
• Subscribers Using A Set Top Box
  • Percent of Subscribers Using Any Type of Cable Set Top Box
  • Average Number Of Set Top Boxes Per Household
  • Percent of Subscribers Using An Analog Set Top Box
  • Percent Of Subscribers Using A Digital Set Top Box
  • Percent Of Digital Subscribers With A Hard Disk Drive
• Subscribers Using Advanced Digital Cable Services - VOD, HDTV, PVR
  • Video-On-Demand (VOD) Services
    • High Definition TV (HDTV) Services
    • Personal Video Recorder (PVR) Services
    • Video On Demand Services
    • Currently Offer VOD Services Or Plan To Offer In 12 Months
  • High Definition TV (HDTV) Services
    • Currently Offer HDTV Services Or Plan To In 12 Months
    • Percent Of Subscribers Currently Using HDTV Services
  • Personal Video Recorder (PVR) Services
    • Currently Offer PVR Or Plan To Within 12 months
    • Percent Of Subscribers Currently Using PVR Services
  • Attitudes And Usage Of CableCARD Devices And Technologies
    • What Is The CableCARD Plug-and-Play Initiative?
    • CableCARD Devices
  • Currently Support CableCARD Or Plan To In 12 Months
  • CableCARD Devices Already Shipped To Subscribers
  • Will CableCARDs Be A Benefit To Your Cable System
• Penetration Of Advanced Digital Cable Services And Bundling Of Multiple Services
  • Penetration Of Digital Video Services
  • Penetration Of High Speed Data (HSD) Cable Modem Services
  • Penetration Of Telephone Services On Your Cable TV System
  • Percentage of Subscribers with 2 Services in a Bundle
  • Percent Of Subscribers With 3 Services In A Bundle
• Average Revenues Per Unit (ARPU)
  • Percentage Increase In ARPU Over Past 12 Months
• Customer Service Call Center
  • Do You Have Special Training To "Up Sell Customers
• Competition Likely From Local Telephone Company (Telco)
  • A Trio Of In-Stat Reports Provide Deeper Understanding
  • Local Cable TV Operators Are Well Aware Of The Coming Competition From Telcos And Are Taking Steps
  • Do You Expect Video Services From A Competing Telco
  • Which Telco Will Be Competing With Video Services
  • How Will Your Cable System Fare Against Telco Competition
• Outlook For Capital Expenditures (CAPEX)
• Final Thoughts
  • The Availability Of Advanced Video Services Is Increasing, But Their Penetration Levels Remain Modest
  • Few Cable Subscribers Take Any Type Of Service Bundle
  • Cable Operator ARPU Is On The Rise
  • Many Cable Operators Are Unconvinced About The Viability Of CableCARD Devices
  • Competition Is Coming From Large Telephone Companies

List of Tables

• Table 1. Key Statistics for US Cable Television Industry
• Table 2. Relative Market Ranking Of Respondents Local Cable Television System (percent of respondents by market size, number of respondents by market size)
• Table 3. Respondents System Size By Number of Basic Cable Subscribers (percent of respondents by size of local system, number of respondents by system size)
• Table 4. Annual Subscriber Growth of Local Cable System (percentage and number of respondents)
• Table 5. Number Of Net New Subscribers In Past 12 Months (percentage and number of respondents)
• Table 6. Number Of Net Fewer Subscribers In Past 12 Months (percentage and number of respondents)
• Table 7. Percent Of Subscribers With Access To 2-Way Digital Cable Services (percentage and number of respondents)
• Table 8. Actual Number Of Subscribers Taking Digital Cable TV Services (percentage and number of respondents)
• Table 9. Bandwidth Available On Main Cable Trunk (percentage and number of respondents)
• Table 10. Number Of Headends Connected In Your Cable TV System (percentage and number of respondents)
• Table 11. Number Of 6MHz Channels On Main Cable Trunk (percentage and number of respondents)
• Table 12. Number Of 6-MHz Channels Available For New Uses (percentage and number of respondents)
• Table 13. Number Of 6-MHz Channels Available In 12 Months (percentage and number of respondents)
• Table 14. Number Of 6-MHz Channels In Use For Analog Video Services (percentage and number of respondents)
• Table 15. 6-MHz Channels In Use For Digital Services (percentage and number of respondents)
• Table 16. 6-MHz Channels Expected For Digital Services In 12 Months (percentage and number of respondents)
• Table 17. 6-MHz Channels In Use for Video On Demand Services (percentage and number of respondents)
• Table 18. 6-MHz Channels for VOD in 12 months (percentage and number of respondents)
• Table 19. 6-MHz Channels In Use For High Definition TV Services (percentage and number of respondents)
• Table 20. 6-MHz Channels For HDTV in 12 Months (percentage and number of respondents)
• Table 21. 6-MHz Channels In Use for Cable Modem Services (percentage and number of respondents)
• Table 22. 6-MHz Channels For Cable Modems in 12 Months (percentage and number of respondents)
• Table 23. 6-MHz Channels In Use for Telephone Services (percentage and number of respondents)
• Table 24. 6-MHz for Telephone Services in 12 Months (percentage and number of respondents)
• Table 25. Percent Of Subscribers Using Cable Modem Services (percentage and number of respondents)
• Table 26. Percent Of Cable Modem Subscribers That Are Businesses (percentage and number of respondents)
• Table 27. Percent of Subscribers Using Any Type of Cable Set Top Box (percentage and number of respondents)
• Table 28. Average Number Of Set Top Boxes Per Household By Cable System (percentage and number of respondents)
• Table 29. Percent of Subscribers Using An Analog Set Top Box (percentage and number of respondents)
• Table 30. Percent Of Subscribers Using A Digital Set Top Box (percentage and number of respondents)
• Table 31. Percent Of Digital Subscribers With A Hard Disk Drive Set Top Box (percentage and number of respondents)
• Table 32. Currently Offer VOD Services (percentage and number of respondents)
• Table 33. Plan To Be Offering VOD Services in 12 Months (percentage and number of respondents)
• Table 34. Percent Of Subscribers Currently Using VOD Services (percentage and number of respondents)
• Table 35. Currently Offer HDTV Services (percentage and number of respondents)
• Table 36. Plan To Offer HDTV Service Within 12 Months (percentage and number of respondents)
• Table 37. Percent Of Subscribers Currently Using HDTV Services (percentage and number of respondents)
• Table 38. Currently Offer PVR Services (percentage and number of respondents)
• Table 39. Plan To Offer PVR Service Within 12 Months (percentage and number of respondents)
• Table 40. Percent Of Subscribers Currently Using PVR Services (percentage and number of respondents)
• Table 41. Currently Support CableCARD (percentage and number of respondents)
• Table 42. Plan To Support CableCARD Within 12 Months (percentage and number of respondents)
• Table 43. CableCARD Devices Already Shipped To Subscribers (percentage and number of respondents)
• Table 44. Will CableCARDs Be A Benefit To Your Cable System (percentage and number of respondents)
• Table 45. Penetration Of Digital Video Services (percentage and number of respondents)
• Table 46. Penetration Of High Speed Data (HSD) Cable Modem Services (percentage and number of respondents)
• Table 47. Penetration Of Telephone Services On Your Cable TV System (percentage and number of respondents)
• Table 48. Percentage of Subscribers with 2 Services in a Bundle (percentage and number of respondents)
• Table 49. Percent Of Subscribers With 3 Services In A Bundle (percentage and number of respondents)
• Table 50. Did ARPU Increase, Decrease Or Stay The Same (percentage and number of respondents)
• Table 51. Percentage Increase In ARPU Over Past 12 Months (percentage and number of respondents)
• Table 52. Does Your System Have A Local Call Center (percentage and number of respondents)
• Table 53. Do You Have Special Training To "Up Sell" Customers (percentage and number of respondents)
• Table 54. Do You Expect Video Services From A Competing Telco (percentage and number of respondents)
• Table 55. Which Telco Will Be Competing With Video Services (percentage and number of respondents)
• Table 56. How Will Your Cable System Fare Against Telco Competition (percentage and number of respondents)
• Table 57. Size of CAPEX Budget in 2004 (percentage and number of respondents)
• Table 58. Estimated Size of CAPEX Budget in 2005 (percentage and number of respondents)

List of Figures

• Figure 1. Basic Cable TV Subscriber Growth in the US, 1995 -- 2004 (US Basic Cable TV Subscribers In Millions)
• Figure 2. Relative Market Ranking Of Respondents Local Cable Television System (percent of respondents by market size)
• Figure 3. Respondents System Size By Number of Basic Cable Subscribers (percent of respondents by size of local system)
• Figure 4. Annual Subscriber Growth of Local Cable System (percentage of respondents)
• Figure 5. Number Of Net New Subscribers In Past 12 Months (percentage of respondents)
• Figure 6. Number Of Net Fewer Subscribers In Past 12 Months (percentage of respondents)
• Figure 7. Percent Of Subscribers With Access To 2-Way Digital Cable Services (percentage of respondents)
• Figure 8. Actual Percentage Of Subscribers Taking Digital Cable TV Services (percentage of respondents)
• Figure 9. Bandwidth Available On Main Cable Trunk (percentage of respondents)
• Figure 10. Number Of Headends Connected In Your Cable TV System (percentage of respondents)
• Figure 11. Number Of 6MHz Channels On Main Cable Trunk (percentage of respondents)
• Figure 12. Number Of 6-MHz Channels Available For New Uses (percentage of respondents)
• Figure 13. Number Of 6-MHz Channels In 12 Months (percentage of respondents)
• Figure 14. Number Of 6-MHz Channels In Use For Analog Video Services (percentage of respondents)
• Figure 15. 6-MHz Channels In Use For Digital Services (percentage of respondents)
• Figure 16. 6-MHz Channels Expected For Digital Services In 12 Months (percentage of respondents)
• Figure 17. 6-MHz Channels In Use for Video On Demand Services (percentage of respondents)
• Figure 18. 6-MHz Channels for VOD in 12 months (percentage of respondents)
• Figure 19. 6-MHz Channels In Use For High Definition TV Services (percentage of respondents)
• Figure 20. 6-MHz Channels For HDTV in 12 Months (percentage of respondents)
• Figure 21. 6-MHz Channels In Use for Cable Modem Services (percentage of respondents)
• Figure 22. 6-MHz Channels For Cable Modems in 12 Months (percentage of respondents)
• Figure 23. 6-MHz Channels In Use for Telephone Services (percentage of respondents)
• Figure 24. 6-MHz for Telephone Services in 12 Months (percentage of respondents)
• Figure 25. Percent Of Subscribers Using Cable Modem Services (percentage of respondents)
• Figure 26. Percent Of Cable Modem Subscribers That Are Businesses (percentage of respondents)
• Figure 27. Percent of Subscribers Using Any Type of Cable Set Top Box (percentage of respondents)
• Figure 28. Average Number Of Set Top Boxes Per Household By Cable System (percentage of respondents)
• Figure 29. Percent of Subscribers Using An Analog Set Top Box (percentage of respondents)
• Figure 30. Percent Of Subscribers Using A Digital Set Top Box (percentage of respondents)
• Figure 31. Percent Of Digital Subscribers With A Hard Disk Drive Set Top Box (percentage of respondents)
• Figure 32. Currently Offer VOD Services (percentage of respondents)
• Figure 33. Plan To Be Offering VOD Services in 12 Months (percentage of respondents)
• Figure 34. Percent Of Subscribers Currently Using VOD Services (percentage of respondents)
• Figure 35. Currently Offer HDTV Services (percentage of respondents)
• Figure 36. Plan To Offer HDTV Service Within 12 Months (percentage of respondents)
• Figure 37. Percent Of Subscribers Currently Using HDTV Services (percentage of respondents)
• Figure 38. Currently Offer PVR Services (percentage of respondents)
• Figure 39. Plan To Offer PVR Service Within 12 Months (percentage of respondents)
• Figure 40. Percent Of Subscribers Currently Using PVR Services (percentage of respondents)
• Figure 41. Currently Support CableCARD (percentage of respondents)
• Figure 42. Plan To Support CableCARD Within 12 Months (percentage of respondents)
• Figure 43. CableCARD Devices Already Shipped To Subscribers (percentage of respondents)
• Figure 44. Will CableCARDs Be A Benefit To Your Cable System (percentage of respondents)
• Figure 45. Penetration Of Digital Video Services (percentage of respondents)
• Figure 46. Penetration Of High Speed Data (HSD) Cable Modem Services (percentage of respondents)
• Figure 47. Penetration Of Telephone Services On Your Cable TV System (percentage of respondents)
• Figure 48. Percent Of Subscribers With 2 Services In A Bundle (percentage of respondents)
• Figure 49. Percent Of Subscribers With 3 Services In A Bundle (percentage of respondents)
• Figure 50. Did ARPU Increase, Decrease Or Stay The Same (percentage of respondents)
• Figure 51. Percentage Increase In ARPU Over Past 12 Months (percentage of respondents)
• Figure 52. Does Your System Have A Local Call Center (percentage of respondents)
• Figure 53. Do You Have Special Training To "Up Sell" Customers (percentage of respondents)
• Figure 54. Do You Expect Video Services From A Competing Telco (percentage of respondents)
• Figure 55. Which Telco Will Be Competing With Video Services (percentage of respondents)
• Figure 56. How Will Your Cable System Fare Against Telco Competition (percentage of respondents)
• Figure 57. Size of CAPEX Budget in 2004 (percentage of respondents)
• Figure 58. Estimated Size of CAPEX Budget in 2005 (percentage of respondents)