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Report: Cable TV Faces Stiff Competition from Satellite TV, IPTV

October 23, 2008

A quick fix on the part of cable TV providers would be to improve or introduce new services such as video on demand (VoD), Parks Associates suggested.

The report maintains that when customers are unsatisfied they naturally tend to look for other services and satellite and telco/IPTV providers are planning targeting unsatisfied cable customers. Although cable operators have improved service efforts, these operators will still hemorrhage subscribers unless they are perceived as offering leading-edge features at equal or better value. In today's economic climate, carriers cannot afford to ignore these findings.

“Subscribers who actively use primetime VoD services show significantly higher satisfaction levels,” said Parks Associates analyst Kurt Scherf, in a statement. “VoD initiatives, particularly those aimed at delivering a ‘Primetime, Anytime’ experience are potential ARPU [average revenue per user] generators and trigger churn toward the provider, a reversal of current market trends.”

From the article, "Report: Cable TV Faces Stiff Competition from Satellite TV, IPTV" by Nathesh

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