Many cable operators are losing TV subscribers to telcos’ IPTV platforms, and telcos are losing telephony and high-speed-Internet subs to the cable operators. The battleground is now bundles - dual-play, triple-play and quadruple-play. Bundles are great at ensuring customer loyalty, but they don’t necessarily mean lower TV ARPUs.

As competition intensifies, many cable operators are laying fiber-optic cable to boost Internet speeds and to permit even more TV applications. Will this help them see off competition from the telcos?

Do platforms need to invest a great amount in network infrastructure? Broadcasters - and even platforms - are using the Internet as an additional revenue source as online TV and video booms. However, audio and visual picture quality over the Internet is usually not as high as broadcast standards - especially HDTV.
The growth in HD channels has seen operators launch HD DVRs. DVRs - both SD and HD - have enjoyed considerable success in some markets, though high equipment costs put off consumers in others. DVRs allow ad skipping.

Advertisers are much more cautious about spending too much on free-to-air channels as audiences fragment and viewing figures fall. Pay TV advertising - and even VOD advertising - is gaining considerable traction.

Simon Murray, Principal Analyst, simon.murray@informa.com

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