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	February 18, 2004 Digital Cable Overtakes Satellite An Analysis Of The Growth Digital Cable and Satellite In The US by Josh Bernoff with Chris Charron, Ayanna Lonian, Charles Q. Strohm

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Executive Summary

The real battle for TV subscribers is between satellite and digital cable — each now has just more than 20 million US subscribers each. Satellite leads in satisfaction, but digital cable is growing more quickly. Now that digital cable can match or beat satellite on digital video recorders (DVRs), HDTV, and marketing, digital cable will overtake satellite, opening up a 17-million-subscriber advantage; satellite will attract an increasingly downscale audience. To succeed, cable should boost value with video on-demand (VOD); satellite should use HD and DVRs to pursue a higher tier of subscribers. Networks caught in the crossfire should beef up their value with more VOD and HDTV content.

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