The Cable Television Market

Paper Summary:

The paper discusses how the cable television broadcasting market is experiencing significant growth. This is mainly due to the increasing focus from advertisers on reaching smaller and more precisely defined markets and the burgeoning interest in digital TV content delivered through cable television networks. The paper examines how the cable companies are making the transition from analog to digital signals accessible to everyone. The paper points out that for all the growth companies are going through today, there is just as much consolidation occurring. The paper describes how the cable television industry finds itself at the forefront of technological change but must consolidate in order to survive in this rapidly changing industry.

Outline:
Executive Summary
Cable TV Market Segmentation
Current Market Conditions Globally for Cable TV
Cable TV Industry Consolidation

From the Paper:

"There are two dominant business models in the cable television industry which include advertising, which is consistently just over half of the revenue of the global market, and according to the latest estimates, 51% of total revenues, followed by service subscriptions at 34.5%, and lastly with cable television license fees of 14.5% according to LWC Research Telecommunications Report (2005).
"In terms of geographic distribution of revenue, the United States is 43.1% of total revenues, followed by Europe at 25%, Asia-Pacific is third with 22% of total revenues and the rest of the world is 9.9%. The majority of advertising revenues globally are generated in the United States as are subscription revenues."

Sample of Sources Used:

• Cox Communications (2004) - Annual Report from Cox Cable Service. Downloaded from their internet site on October 7, 2006.
• Economist (2006) - Cable television speaks Espanola. The Economist Magazine. July 22, 2006. New York, NY
• European Cable TV Today (2006) - Article and expose on the growth of cellular providers interest in digital content. May 3, 2006. London, UK
• LWC Research Telecommunications Report (2005) - Industry Forecast For Advertising and Subscribership. Published December 15, 2005. Orange, CA. A

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• Term Paper # 112517 : "Cable Advertising"
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