Cable Providers Are Losing Ground to Satellite Providers
In February, the Federal Communications Commission released their 12th Annual Report to Congress on Video Competition. In the document, the FCC reported that cable had lost a little more than 2 percent of the market, while Direct Broadcast Satellite (DBS) companies have gained more than two percent of the market.
Several developments have caused these changes, but an important issue highlighted by the report that may be speeding the change in the market is the method in which cable is trying to maintain its dominance.
As DBS has become increasing competition for cable companies, in general the cable companies have not lowered their prices for their cable services. Instead, they have responded by offering more services, like expanding their channel programming or offering a triple play bundle. Cable providers' triple play bundles usually include digital phone service, cable television service and cable High-Speed Internet. But DBS providers and other competitors to cable have caught onto this trend, and have begun to expand their networks or partnerships so that they can also offer their own versions of the triple play, making the companies more viable competition to cable. A list of key findings can be found on this press release of the FCC's 12th annual report on video competition.
