Change the channel: Growing alternative options will prove detrimental to industry growth

Over the five years to 2017, industry revenue is expected to due to rate adjustments and subscriber upgrades, despite a decline in cable TV subscriptions. The number of broadband internet connections has increased dramatically over the period, helping the industry stem declines in its subscriber base through bundled service offerings. Over the five years to 2022, the industry is expected to benefit from the addition of high-speed internet subscribers and upgrades to higher-margin digital cable services. Although bundling is expected to continue to drive subscriptions to the industry's core services, cable companies are expected to offer slimmer and lower-cost bundles to entice potential cord cutters with cord-shaving options...read more.

Industry Statistics & Market Size
Revenue
$104bn
Annual Growth 12-17
0.7%
Forecast Growth 17-22
Profit
Employment
259,090
Businesses
4,140
What Our Customers Say

Industry Threats & Opportunities

  • The industry is expected to benefit from the addition of high-speed internet subscribers
  • Cable networks often have the upper hand in negotiating programming license fees
  • The industry is expected to experience rapidly escalating competition from external sources
  • Industry Report - Industry Investment Chapter

    The Cable Providers industry exhibits a high level of capital intensity. Using wages as a proxy for labor and depreciation as a proxy for capital, IBISWorld estimates that for every dollar spent on wages in the industry, $0.60 is spent on capital. Companies in this industry must spend a significant amount of money on cable infrastructure and peripheral equipment as they constantly expand and upgrade their networks. New technologies to accommodate the rapid increase in data traffic over cable networks will continue to push industry operators to make infrastructure investments. Consequently, the capital intensity of the industry is expected to remain high over the next five years...purchase to read more.

    Additional Insights for the Cable Providers Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Cable Providers Industry are

  • Having an extensive distribution network
  • Must have license and comply with regulation
  • Access to niche markets
  • IBISWorld analysts also discuss how external factors such as Number of cable TV subscriptions and Number of households in the Cable Providers industry impact industry performance..

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    What is the Cable Providers Industry?

    This industry consists of companies that operate wired, third-party distribution systems for broadcast programming. These operators deliver TV programming received from cable networks or local TV stations to consumers via cable infrastructure on a subscription basis. Cable providers also offer internet access and internet-protocol telephony services, usually as a package bundled with a cable TV subscription. This industry excludes telecommunications carriers.

    Industry Products
  • Basic programming packages
  • Premium programming packages
  • Pay-per-view programming
  • Industry Activities
  • Providing third-party distribution systems for public broadcast programming
  • Distributing video services by coaxial cable
  • Providing internet access via cable infrastructure
  • Providing internet-protocol telephony services via cable infrastructure
  • Renting out cable boxes and digital voice recorders (DVRs)
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of cable TV subscriptions
  • Number of households
  • Number of broadband connections
  • Per capita disposable income
  • Consumer Confidence Index

  • Current Performance
  • Cutting the cord
  • Consolidation
  • Chart: Revenue Growth

  • Industry Outlook
  • New competition
  • Customer churn
  • Industry structure
  • Table: Cable Providers Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Cable Providers Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Cable Networks
  • Internet Service Providers
  • Television Production
  • Wired Telecommunications Carriers

  • Products & Services
  • Basic programming packages
  • Premium programming packages
  • Pay-per-view programming
  • Chart: Cable Providers Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 50 and older
  • Consumers aged 30 to 49
  • Consumers aged 18 to 29
  • Businesses
  • Chart: Major Market Segmentation for the Cable Providers Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Cable Providers

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Cable Providers Industry

  • Industry Globalization
    Charter Communications Inc.Comcast CorporationVerizon Communications Inc.
  • Table: Charter Communications Inc. - financial performance
  • Table: Comcast Corporation - financial performance
  • Table: Verizon Communications Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Cable Providers Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Cable Providers Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Cable TV subscribers (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Basic Cable
  • The minimum package of cable channels, which includes all free-to-air TV channels and a select few cable channels.
  • Bundled Services
  • Bundled services include internet access and VoIP telephone service sold in combination with a cable TV subscription.
  • Customer Churn
  • The rate of increase at which customers discontinue their service on a voluntary or involuntary basis.
  • High-Definition (Hd)
  • A picture with a resolution more detailed than a traditional standard definition television.
  • Why buy this report?

    The Cable Providers industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Cable Providers:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Cable Providers market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Cable Providers, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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