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
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Custom TV
Distributed Access Architectures – 2

10|21|14   |   8:51:00 AM   |   (0) comments


ARRIS CTO Network Solutions Tom Cloonan discusses why many if not most MSOs will continue with integrated CCAP, while addressing why some are also looking at two futuristic, distributed access architectures: Remote PHY and Remote CCAP.
LRTV Custom TV
Distributed Access Architectures – 1

10|21|14   |   9:01   |   (0) comments


SCTE Sr. Director of Engineering Dean Stoneback discusses the pros and cons of distributed access architecture (DAA) and its various forms, which range from basic Remote PHY to full CMTS functionality in the node.
LRTV Custom TV
The WiFi Road to Riches – 2

10|21|14   |   3:58   |   (0) comments


ARRIS Senior Solution Architect Eli Baruch talks about how MSOs can enable public and community WiFi through 1) outdoor access points, 2) businesses seeking to offer WiFi to customers, and 3) residential WiFi gateway extensions.
LRTV Custom TV
The WiFi Road to Riches – 1

10|21|14   |   10:15   |   (0) comments


SCTE Director of Advanced Technologies Steve Harris discusses WiFi deployments, drivers, challenges and advances, including 802.11ac, carrier-grade WiFi, community WiFi, Hotspot 2.0, Passpoint, WiFi-First and voice-over-WiFi.
LRTV Custom TV
Advantech Accelerates 100G Traffic Handling

10|17|14   |   7:56   |   (0) comments


Paul Stevens from Advantech explains why handling 100GbE needs a whole new platform design approach and how Advantech is addressing the needs of equipment providers and carriers to give them the flexibility and performance they will need for SDN and NFV deployment.
LRTV Huawei Video Resource Center
Holland's Imtech Traffic & Infra Discusses Huawei's ICT Solution and Services

10|16|14   |   4:49   |   (0) comments


Dimitry Theebe is from the business unit at Imtech Traffic & Infra which delivers communications solutions for transportations. His partnershp with Huawei began about a years ago. In this video, Theebe speaks more about this partnership and what he hopes to accomplish with Huawei.
LRTV Huawei Video Resource Center
Huawei's Comprehensive Storage Solutions Vital for SVR

10|16|14   |   6:16   |   (0) comments


SVR Information Technology provides cloud services for academic and special sectors. With Huawei's support, SVR and Yildiz Technical University has established Turkey's largest and most advanced High Performance Computing system. CSO Ismail Cem Aslan talks about what he hopes Huawei's OceanStor storage system will bring for him.
LRTV Huawei Video Resource Center
Mexico's Servitron's Impression of Huawei at CCW 2014

10|16|14   |   6:35   |   (0) comments


Servitron is a network operator in Mexico that has been in the trunking industry for the past 20 years. Its COO, Ing. Ragnar Trillo O., explains at Critical Communications World 2014 that his company has been interested in the long-term evolution of LTE technology and its adoption for TETRA.
LRTV Huawei Video Resource Center
Building a Better Dubai

10|16|14   |   2:06   |   (0) comments


Abdulla Ahmed Al Falasi is the director of commercial affairs, a telecommunications coordinator for the government of Dubai. Their areas of service span across multiple industries, including police, safety, shopping malls and more. In this video, Abdulla talks about his department's work with Huawei.
LRTV Huawei Video Resource Center
Huawei Lights Up Malaysia Partner Maju Nusa

10|16|14   |   1:59   |   (0) comments


Malaysia's Maju Nusa is an enterprise partner to Huawei in networking, route switches and telco equipment. At this year's Critical Communications World in Singapore, CTO Pushpender Singh talks about what Huawei's eLTE solutions mean to his company and for Malaysia.
LRTV Custom TV
Evolving From HFC to FTTH Networks

10|15|14   |   2:19   |   (0) comments


Cisco's Todd McCrum delves into the future of cable's HFC plant, examining how DOCSIS 3.1 and advanced video compression will extend its life and how the IP video transition will usher in GPON and EPON over FTTH.
LRTV Custom TV
Exploring the Future of Cable Access

10|15|14   |   6:23   |   (0) comments


Cisco's Brett Wingo looks at where cable access architectures are heading, discussing the impact of DOCSIS 3.1, CCAP, Remote PHY, SDN, virtualization of cable networks and related technologies.
Upcoming Live Events
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
WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
Hot Topics
Forget the Internet, Brace for Skynet
Stephen Saunders, 10/15/2014
HBO Will Go OTT in 2015
Mari Silbey, Independent Technology Editor, 10/15/2014
Google: Carriers & Cloud Providers Need to Cooperate
Mitch Wagner, West Coast Bureau Chief, Light Reading, 10/16/2014
Could Data Be the New 'Currency'?
Ray Le Maistre, Editor-in-chief, 10/16/2014
iPad Air 2 Lets Users Switch Carriers Any Time
Mitch Wagner, West Coast Bureau Chief, Light Reading, 10/17/2014
Like Us on Facebook
Twitter Feed