& cplSiteName &

For Cable, Broadband Is the New Video

Alan Breznick
8/18/2014
50%
50%

The US cable industry has quietly achieved a major milestone, with the number of broadband subscribers for the top nine MSOs topping their number of video subscribers for the first time in the industry's 65-year history.

In its latest report on the US broadband market by Leichtman Research Group Inc. (LRG) , the nine biggest cable operators plus cable overbuilder WideOpenWest Holdings LLC (WOW) added about 382,000 high-speed data subscribers in the second quarter, easily exceeding the 296,000 they added in the same period a year earlier. Thanks to these strong gains, they ended June 30 with nearly 50.7 million data subs.

Even without the addition of WOW's 769,000 data subs, the nine top MSOs still closed out the spring quarter with 49.915 million broadband customers. That's slightly more than the 49.910 million TV customers those nine providers now have, after sustaining another round of heavy video sub losses in the spring. (See US Pay-TV Subs Renew Plunge.)

Reaching this milestone was not exactly a surprise. The cable industry has been trending towards broadband for years and, in a recent report, Moody's Investors Service predicted that the crossover point was coming momentarily. (See Cable Broadband Surpassing Video: Moody's.)

But that doesn't make the milestone any less significant. An industry founded on the premise of bringing TV signals and video programming to those who couldn't get them over-the-air is now more reliant on a non-video service for its future prospects.

Fortunately for cable operators, their hold on the US broadband market continues to tighten, even as their hold on the pay-TV market continues to slip. LRG reported that cable operators accounted for virtually all the growth, or 99%, in the high-speed data market again.

In stark contrast, the top seven phone companies collectively netted a mere 2,000 broadband subs, the same amount as a year ago, essentially keeping their total flat at 35.2 million. Notably, AT&T Inc. (NYSE: T) and Verizon Communications Inc. (NYSE: VZ), despite gaining a combined 627,000 broadband subs via their respective U-verse and fiOS platforms, actually shed a total of 9,000 data customers in the spring quarter because of their even heavier DSL losses.

As a result, the cable industry now commands 59% of the total US broadband market, which is 85.9 million homes strong and still growing at a healthy pace. That's cable's highest market share since the early days of broadband technology a decade or so ago.


For more of Light Reading's coverage of broadband market trends, visit our broadband services content channel.


With such major MSOs as Time Warner Cable Inc. (NYSE: TWC), Cablevision Systems Corp. (NYSE: CVC) and Suddenlink Communications clearly placing more emphasis on broadband growth in the future, these trends will likely continue. So look for the broadband market to continue to grow as the video market flattens out. And don't be surprised if cable's broadband market share continues to climb, despite all the headline-grabbing moves by Google Fiber, AT&T, CenturyLink and other rivals to deploy 1-Gig speeds.

— Alan Breznick, Cable/Video Practice Leader, Light Reading

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Richard Harper
50%
50%
Richard Harper,
User Rank: Light Beer
8/19/2014 | 7:07:40 AM
Re: Verizon and AT&T
It backs up the data that more people are watching IPTV than ever before, I wonder how long until it becomes the norm?
KBode
100%
0%
KBode,
User Rank: Light Sabre
8/18/2014 | 2:32:47 PM
Verizon and AT&T
Of course those DSL declines are quite intentional as AT&T and Verizon hang up on markets they have absolutely no interest in upgrading...
More Blogs from Breznick Unbound
Light Reading and SCTE/ISBE are tackling virtualization technologies together in both a Sept. 21 webinar and a Sept. 27 breakfast forum.
Light Reading and SCTE/ISBE are teaming up again to create multimedia content aimed at helping cable operators cut energy use and costs.
In a questionable call, the cable trade group is planning to hold its INTX show next year at the same time as NAB's big trade show in Las Vegas.
Light Reading and NCTC are teaming up to create and market webinars, video interviews and other multimedia content for smaller and independent cable operators.
Now that Sony has launched a 4K movie streaming service and AT&T/DirecTV is broadcasting golf and baseball action in UHD, is 4K video ready to go prime time?
Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
NEXT COURSE
Wednesday, September 28, 1:00PM EDT
Gigabit 101
Will Barkis, Senior Technology Analyst, Orange
UPCOMING COURSE SCHEDULE
Friday, September 30, 1:00PM EDT
Gigabit & the Great Migration
Robert Howald, Vice President, Network Architecture, Comcast
Wednesday, October 5, 1:00PM EDT
Gigabit & Smart Cities
Joe Kochan, COO & Co-Founder, US Ignite
Friday, October 7, 1:00PM EDT
Gigabit & DOCSIS 3.1
Ty Pearman, Director, Access Architecture, Comcast
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Custom TV
Introducing IoT World News

9|27|16   |   01:43   |   (0) comments


Self-driving cars, medical sensors, smart cities... and refrigerators. In order to address the huge scope of IoT, KNect365 has created a unique online community that will help businesses to understand and monetize the opportunities that live within the IoT market. We look forward to welcoming you to IoT World News -- your gateway to a better connected future.
LRTV Interviews
AT&T: Re-usable Functions Next NFV Key

9|27|16   |   06:03   |   (0) comments


The next generation of NFV has to break functions down into re-usable software chunks, making everything much more cloud-like.
LRTV Interviews
Masergy on Security: Attackers Gaining Upper Hand

9|27|16   |   5:10   |   (2) comments


At Light Reading's NFV & Carrier SDN event in Denver, Ray Watson, vice president of Global Technology at Masergy, says that because of the growth in virtualization, the threat landscape is shifting in favor of the attackers. As a result, service providers need to think beyond just defending the perimeter and take a more holistic approach to security.
LRTV Interviews
Verizon Takes Next Step on Biz Virtualization Journey

9|26|16   |   4:38   |   (2) comments


At September's NFV & Carrier SDN event in Denver, Light Reading sat down with Victoria Lonker, director of Product and New Business Innovation at Verizon, to chat about where the carrier is with delivering virtualized services to business customers.
LRTV Interviews
Global Services: The $40B Face-Off

9|26|16   |   05:53   |   (1) comment


More service providers than ever before are battling it out to win a slice of what is now a $40 billion global communications services pie, explains Ovum Principal Analyst David Molony.
LRTV Documentaries
MEC Congress: The Key Takeaways

9|22|16   |   03:25   |   (3) comments


Three key takeaways from the Mobile Edge Computing (MEC) Congress in Munich, Germany.
Wagner’s Ring
Time to Shut Up About 'Dumb Pipes'

9|22|16   |     |   (12) comments


Service providers can't compete with OTT players. It just isn't in their DNA. Instead, service providers need to embrace what they're good at -- providing reliable, secure connectivity.
Wagner’s Ring
Keeping Your Tech Career Going After 50

9|21|16   |     |   (13) comments


How do you keep your career moving forward when you're past the half-century mark?
LRTV Interviews
Peering Into the Digital Future

9|20|16   |   04:25   |   (0) comments


Nick Thomas, practice leader of digital media at Ovum, talks about how digital transformation in the technology, media and telecom sectors will enable the development of a new range of applications and services for enterprises and consumers and how the upcoming Digital Futures event in London will examine ...
LRTV Custom TV
Napatech Tackles NFV's Major Challenge

9|7|16   |   08:42   |   (0) comments


One of the main challenges for network operators introducing NFV is to combine performance and flexibility in a cost-effective way, but there is a solution, explains Napatech's Dan Joe Barry.
LRTV Custom TV
Huawei Optical Innovation 2016

9|6|16   |     |   (0) comments


Highlights of the 2016 Huawei Optical Innovation forum.
LRTV Huawei Video Resource Center
Are You Ready for Huawei Connect 2016?

8|31|16   |     |   (0) comments


Join us for an exclusive sneak peak of Huawei Connect, an integrated conference for the global ICT ecosystem taking place in Shanghai.
Upcoming Live Events
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 1, 2016, The Westin Times Square, New York, NY
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
Keeping Your Tech Career Going After 50
Mitch Wagner, West Coast Bureau Chief, Light Reading, 9/21/2016
Time to Shut Up About 'Dumb Pipes'
Mitch Wagner, West Coast Bureau Chief, Light Reading, 9/22/2016
Verizon CFO: Eat Our (Fixed) 5G Dust!
Dan Jones, Mobile Editor, 9/22/2016
Eurobites: Telefónica Taps Juniper for Network Security
Paul Rainford, Assistant Editor, Europe, 9/26/2016
WiCipedia: The Women Helping Women Edition
Eryn Leavens, Special Features & Copy Editor, 9/23/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Light Reading CEO Steve Saunders and UXP Systems CEO Gemini Waghmare discuss the strategic importance of digital identity for operators in the midst of transformation.
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Animals with Phones
There's Nothing Like Missing a Full Minute of Pokémon Go Click Here
Live Digital Audio

A vital part of increasing the number of women in comms is transforming the ways companies can support and empower women. While progressive company policies that support both men and women in achieving work-life balance are a step in the right direction, creating a company culture that supports those policies can at times be more challenging.

During this show, we'll talk to Lynn Comp, Senior Director of Industry and Sales Enabling (ISE) in the Network Platforms Group at Intel, about why those challenges exist and how companies can overcome them. She'll provide insight into how Intel has worked to create a culture that supports work-life balance, and provide steps and guidance for other companies wishing to do the same. We will also leave plenty of time to get your questions answered live on the air.