& 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
In a sign that Google Fiber has all but abandoned ship even in its existing markets, the Alphabet unit reports notably slower video subscriber growth in the second half of 2016.
Despite strong sales of 4k-ready TV sets, the emergence of UHD content and some progress on technical standards, several obstacles remain for the UHD transition.
Whether it's the new DOCSIS 3.1 spec or the forthcoming Full Duplex DOCSIS spec, cablecos are still mainly counting on DOCSIS to rule the broadband space.
Google unit spells out plans to launch its own OTT skinny bundle service for $35 a month but will face stiff competition in an increasingly crowded market.
Two Wall Street analysts have now concluded that Verizon stands to gain much more from marrying Charter than vice versa.
From The Founder
Either we perform a complete 'factory reset' on the way the telecom industry creates and deploys virtualization, or we face the consequences.
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
Infinera Introduces Instant Network

4|20|17   |     |   (0) comments


Mike Capuano, vice president of marketing at Infinera, discusses the advancement from Instant Bandwidth to new Instant Network capabilities, which include Bandwidth License Pools, Moveable Licenses and Automated Capacity Engineering (ACE).
Women in Comms Introduction Videos
Vodafone's Eubank on Sponsors, Mentors & Moving On Up

4|19|17   |   4:25   |   (0) comments


Vodafone America's Head of Operations Kimberly Eubank breaks down the difference between a sponsor and a mentor and shares why both made a big difference in her career.
LRTV Custom TV
NYC Auto Show: Are We Smart Yet?

4|18|17   |     |   (0) comments


The auto industry is facing some big transformations as electric vehicles, autonomous technology and connected cars are seen as the future of the industry. During the much-anticipated NY international auto show, there was an emergence of new technology and mobility service on the show floor. Aside from performance, brands like Lincoln, Hyundai, Honda, Mercedes and ...
LRTV Huawei Video Resource Center
The Impact of Video

4|18|17   |     |   (0) comments


David Mercer from Strategy Analytics discusses the impact of video on current strategies.
LRTV Custom TV
Pardeep Kohli Discusses Network Transformation & the Market Opportunity for the 'New' Mavenir Systems

4|13|17   |     |   (0) comments


In a brief discussion at MWC 2017, Heavy Reading analyst Adi Kishore talks to Pardeep Kohli, CEO, Mavenir Systems about the creation of the 'new Mavenir' and some of the key challenges facing operators in today's market. A key theme of the discussion centers around operator need for software-only, virtualized solutions and how they will need to adapt to ...
Women in Comms Introduction Videos
Tech Maverick Shares Her Tips for Gender Inclusivity

4|12|17   |   7:28   |   (0) comments


Wendy Hall Bohling, a corporate escapee, author and gender exclusivity consultant, tells her story of sexism, bias and progress along the road to gender equality in the workforce.
LRTV Huawei Video Resource Center
Huawei at MWC 2017

4|11|17   |     |   (0) comments


At Mobile World Congress 2017, the biggest mobile industry gathering of the year, Huawei showcased its new innovations and solutions with the theme "Open Road," which focuses on cloud, 5G, operation transformation, videos and consumer-oriented products. Its campaign has been recognized by three awards given by GSMA.
LRTV Custom TV
China Telecom NFV Infrastructure on RSD

4|6|17   |     |   (0) comments


Lynn Comp, senior director of market development of Intel, is joined by Chong Zhang, storage engineer at Inspur and Ou Li Yan, architect for technology strategies of China Telecom on what NFV brings.
LRTV Custom TV
Nokia's IMPACT Software Demo

4|6|17   |     |   (0) comments


Khamis Abulgubein of IoT market development at Nokia demonstrates IMPACT (intelligent management platform for all connected things), a software solution with a horizontal approach to managing any device on any application.
LRTV Custom TV
Nokia Introduces Virtual Service Router for More Rapid Service

4|6|17   |     |   (0) comments


James Cumming, product line manager for virtualized service routers at Nokia, demonstrates how the virtual router based off the Nokia ecosystem changes the network function experience.
LRTV Custom TV
The Keys to SD-WAN Success

4|6|17   |     |   (0) comments


Versa Networks CEO Kelly Ahuja talks about the key requirements for service provider-managed SD-WANs.
LRTV Custom TV
Intel & Cisco on Joint 5G Solutions

4|5|17   |     |   (0) comments


Dave Ward, SVP and CTO of Cisco, is joined by Sandra Rivera, corporate VP and general manager of network platforms group of Intel, on the revolutionary 5G technology that changes networking and computing fundamentally.
Upcoming Live Events
May 15-17, 2017, Austin Convention Center, Austin, TX
May 15, 2017, Brazos Hall - Austin, TX
May 15, 2017, Austin Convention Center - Austin, TX
June 6, 2017, The Joule Hotel, Dallas, TX
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Time for a Telecom Reboot
Steve Saunders, CEO and founder, Light Reading, 4/19/2017
Comcast Ready for Clash With Hulu
Mari Silbey, Senior Editor, Cable/Video, 4/18/2017
Unlicensed: It's What's Next for US Mobile Operators
Dan Jones, Mobile Editor, 4/19/2017
Verizon's Fiber Spend Won't End With Corning
Mari Silbey, Senior Editor, Cable/Video, 4/19/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
TEOCO Founder and CEO Atul Jain talks to Light Reading Founder and CEO Steve Saunders about the challenges around cost control and service monetization in the mobile and IoT sectors.
Animals with Phones
Now That's an Ad Campaign Click Here
Meerkats to the rescue!
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.