Report: Cable Revenue to Top $121B by 201724 Oct, 2007 By: Erik Gruenwedel
Distribution of entertainment via cable television is expected to help the cable industry increase revenues 77% to $121 billion in 2017, from $68.6 billion in 2006, according to a new report.
SNL Kagan, a New York-based research company, said in a 10-year cable industry outlook that monthly revenue per subscriber is expected to increase 64%, to $143, from 2006.
Commercial services and assorted incremental revenue would push sales to $109 million in 2011 and $138 million in 2017. Revenue from those segments generated $72 million last year.
Such services include video-on-demand pay-per-view movies and prime time TV programming, time-shifting content via digital video recording (DVR), high-def options and interactive menus.
“The cable industry's growth prospects are going to depend on selling more services to existing customers rather than significantly adding to basic subscriptions,” said Ian Olgeirson, senior analyst with SNL.
Separately, Rentrak Corp. released a mid-year 2007 report card indicating it had increased tracking by 44% to 1.44 billion cable TV on-demand orders from the same time last year.
The Portland, Ore.-based DVD revenue-sharing and media-tracking company said comparable year on-demand programming orders increased 103% in the northeast, 68% in the southeast and 49% in the mountain regions.
The company said it is on pace to double the 2.6 million on-demand orders it tracked last year.
Rentrak quantifies and qualifies the transactional market for cable on-demand programming for numerous studio, cable and broadcast operators, including Bresnan Communications, Comcast, Cablevision, Charter and Insight Communications, BET Networks, Blue Highways TV, Discovery Networks, Fox Cable Network, Lifetime Entertainment Services, NBC Universal, Oxygen and World Wrestling Entertainment.