Light Reading
As expected, US cable broadband subscribers pass cable video subs for the first time in latest report from Leichtman Research Group.

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
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
While the No. 2 US MSO is accelerating plans for all-digital video and broadband speed upgrades, it's still desperately playing catch-up.
In yet another attempt to conquer the TV set, Google is launching its Android TV operating system for the big video screen. But will it succeed where other attempts have failed?
In the latest edition of its Visual Networking Index (VNI) study, Cisco forecasts that HD and Ultra HD video will account for nearly two-thirds of all IP video traffic by 2018.
Seven new cable products take the stage this year, covering a wide range of the technology spectrum.
Flash Poll
LRTV Huawei Video Resource Center
Network Solutions Help the Philippines Jump Ahead

9|17|14   |   2:59   |   (0) comments


In the past, the Philippines has under-invested in technology. Now, the CEO of Softshell talks about how Huawei products help the Philippines jump ahead as the economy improves.
LRTV Huawei Video Resource Center
VCS Observation for Safer Cities in the Netherlands

9|17|14   |   5:20   |   (0) comments


Holland's VCS Observation has been operating for 22 years. Its main goal is to get cities safer. CEO Wim van Deijzen tells us some of the challenges his company faces and how Huawei is helping to overcome these challenges.
LRTV Huawei Video Resource Center
A Conversation With Serbia's Ministry of Interior

9|17|14   |   4:38   |   (0) comments


At HCC 2014, the Assistant Minister of the Ministry of Interior of the Republic of Serbia talks to us about his projects and corporation with Huawei. Solutions like Safe City and E-Government and services like cloud computing are just some of the areas his department is interested in.
LRTV Huawei Video Resource Center
IHS Analyst Discusses eLTE at CCW 2014

9|10|14   |   7:09   |   (0) comments


Thomas Lynch, associate director of critical communications at IHS Technology, talks about broadband in critical communications.
LRTV Huawei Video Resource Center
TCAA on Huawei eLTE: A Broadband Solution for Mission-Critical Communications

9|10|14   |   2:29   |   (0) comments


At CCW2014 in Singapore, the TCCA's Phil Kidner talks about the importance of broadband data for critical communications.
LRTV Custom TV
Spotlight on Cisco: SDN for Optical Networks

9|8|14   |   9:27   |   (0) comments


Cisco's Greg Nehib talks OpenFlow and more on the 'Software-Defined Networking for Optical Networks' panel at the Big Telecom Event in June 2014.
LRTV Custom TV
Cisco's Evolved Programmable Network (EPN)

9|8|14   |   4:05   |   (0) comments


A look at the various demos Cisco showed at Light Reading's Big Telecom Event highlighting Cisco's EPN innovation and how SDN and NFV technologies are enabling a variety of new services.
LRTV Huawei Video Resource Center
The Future of Ultra-Broadband, With Kevin Kelly (UBBF2014)

9|5|14   |   1:13   |   (1) comment


If you think the technological changes we've seen up to now are astounding, just wait until you see what the future has in store. Discuss upcoming breakthroughs with Kevin Kelly, Founding Executive Editor of Wired Magazine, at the Huawei Ultra-Broadband Forum on September 24.
LRTV Huawei Video Resource Center
The Inaugural Optical Innovation Forum in Nice

9|2|14   |     |   (0) comments


More than 170 attendees from network operators, service providers, analyst firms, and component companies from around the world convened in Nice in June for the inaugural Optical Innovation Forum, co-produced by Huawei and Light Reading.
Wagner’s Ring
Data Centers Drive Telcos Into the Future

8|28|14   |   2:20   |   (2) comments


Data centers are at the heart of key trends driving telecom -- network virtualization, the drive for increased agility, and the need to compete with OTT providers.
LRTV Custom TV
Why SPs Should Consider Cisco's EPN

8|27|14   |   5:40   |   (0) comments


Sultan Dawood from Cisco discusses Cisco's EPN, which enables SPs to build agile and programmable networks delivering new network virtualized services using Cisco's Evolved Services Platform (ESP).
LRTV Huawei Video Resource Center
Huawei’s Showcase @ Big Telecom Event 2014

8|26|14   |   2.56   |   (0) comments


SoftCOM is Huawei's framework for telecom business and network transformation. Haofei Liu, Solution Marketing Manager, Carrier Business Group, Huawei, showcases Huawei's SoftCOM architecture in this video.
Upcoming Live Events!!
September 23, 2014, Denver, CO
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
A survey conducted by Vasona Networks suggests that 72% of mobile users expect good performance all the time, and they'll blame the network operator when it's not up to par.
Today's Cartoon
Vacation Special Caption Competition Click Here
Latest Comment
Hot Topics
Glimpsing the Self-Driving Car
Dan Jones, Mobile Editor, 9/12/2014
AT&T to Launch WiFi Calling in 2015
Sarah Reedy, Senior Editor, 9/12/2014
AT&T: We'll Bundle Fixed Wireless & DirecTV
Mari Silbey, Independent Technology Editor, 9/15/2014
New NFV Forum Focused on Interoperability
Carol Wilson, Editor-at-large, 9/16/2014
Connecticut Cities Crowdsource Gigabit Nets
Jason Meyers, Senior Editor, Utility Communications/IoT, 9/15/2014
Like Us on Facebook
Twitter Feed