Report

February 1999

Cable's Multiservice Future

Tom Rhinelander 		Adding Internet and phone services to video, the U.S. cable industry will double subscriber revenue to $60 billion in 2005. In this period, MSOs will choose one of two strategic paths: content or connectivity.
by Tom Rhinelander with Christopher Mines, Karen Kopikis

MARKET OVERVIEW
  • Cable's multiservice dream is underway -- operators are rolling out enhanced video, Internet, and phone services.
ANALYSIS
  • By 2005, 20% of homes will use cable-connected phones.
  • MSOs will choose to focus on either content or connections.
ACTION
  • RBOCs must cut deals with cable network owners.
  • Marketers should plan for micro-targeted cable advertising.
WHAT IT MEANS
  • Cable's phone success leads to common carrier regulation.
  • Investors will judge cable on earnings, not cashflow.
 
Figures & Data
  • Figure 1.  Cable's Network Advantage
  • Figure 2.  Cable's Multiservice Progress Report
  • Figure 3.  Third Parties Complete Cable Bundles
  • Figure 4.  Growth In Cable Services Penetration And Revenue
  • Figure 5.  Leading Cable Companies Circa 2005
  • Figure 6.  Cable Companies Split In Two Camps
   
RELATED MATERIAL 
  • Companies Interviewed For This Report
  • Related Research
 
GRAPEVINE
  • ISPs take open access to the people.
  • Selling a better (cable) phone.
  • Will cable networks break under the interactive load?
  • To overbuild or not to overbuild -- that is the question.
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Ratings and Comments
NOT YET RATED
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