‘Multi-Play’ Services Boosting ARPU For Cable TV Operators.

Digital cable TV services such as High Definition TV (HDTV), Video-on-Demand (VOD), Personal Video Recorders (PVRs), high-speed data and telephony services are helping cable operators to boost their Average Revenue Per Unit (ARPU), according to a survey of operators by In-Stat. In-Stat uses the term “Multi-Play” since new digital cable TV services are going far beyond the so-called “Triple Play” of just voice, video and data. 50 different cable TV systems were surveyed, representing a balanced mix of operator sizes and market locations. 78% of the cable operators surveyed reported an increase in ARPU over the past 12 months. In addition, the respondents reported that over 90% of their subscribers now have access to digital cable services.

“Cable operators are aware of competition that is coming from major telephone companies, but the cable industry has a substantial head start, and the future continues to look bright,” says Gerry Kaufhold, an analyst with the high-tech market research firm. “According to respondents, HDTV is more widely available than VOD services. PVR services are also experiencing fast-growth, and cable telephony services are gaining ground, as well. High-speed data services, delivered via cable modems, are helping cable companies to obtain new business customers, as well as providing continuing strong ARPU growth among their subscribers.”

In-Stat’s survey has also found that:

27 of the respondents already have at least 10% of their subscribers taking HDTV services.

23 respondents are just beginning to bundle services, and they reported that less than 10% of their current subscribers take a bundle of at least two services. However, 13 respondents have over 10% of their subscribers currently taking a bundle, usually digital video services and high-speed data.

A significant number of the surveyed cable systems operators remain skeptical about CableCARD devices. 20 of the respondents stated that CableCARDs offer no benefit to either their businesses or cable systems.

46 of the 50 respondents said that their local cable TV system would be able to do well in head-to-head competition against their local telephone company, and believe that their product mix and local services will help them to hold their own in the future.

For more information at http://www.in-stat.com