Audio Video News

High definition television (HDTV) and video-on-demand (VOD) services will help push the cable industry to the next level in the coming years, according to a study recently released by Boston-based technology research firm TRACE strategies.

In 2002, the market for cable-delivered digital television services in North America totaled 20.2 million subscribers. Time Warner Cable serves the largest percentage (47%) of HDTV-ready homes, while Cablevision, Comcast, and Rogers Communications have the highest annual growth of digital subscribers. The Atlantic region has the largest concentration of VOD-ready US cable households, with 26% of such households located in only three states. Of the total 701,000 VOD cable streams delivered to North American cable households in 2002, SeaChange International provided 52% of all streams.

The market also looks good for makers of digital set-top boxes (STBs) and personal video recorders (PVRs). Motorola and Scientific-Atlanta together produce 90% of all STBs used in North America. Motorola's DCT2000 continues to be the dominant set-top box, accounting for nearly 52% of all North American cable STBs. Comcast, Time Warner Cable, and Charter Communications together account for nearly 72% of all North American digital set-top box installations.. Direct broadcast satellite service EchoStar owns 45% of the market share in Personal Video Recorders (PVRs), with TiVo second with 38%.

These facts and others point toward a rosy future for the cable industry, according to Next-Generation Digital Television Data Tracking Report and Planning Guide 2003: Identifying Opportunities in Turbulent Times published by TRACE in early February. The report includes analyses of US and Canadian television markets, market growth data, installed base data, and competitive market share data for five categories that comprise next-generation digital television. The report also provides an analysis of vendors, key market trends, and market strategies.