Data: Digital Cable to Top DBS Numbers

[Gregg Lengling]

During the present quarter, the number of digital cable subscribers in the United States will pass the 20 million mark, exceeding the number of DBS subscribers in the nation, according to a new study from Leichtman Research Group.

The firm said in its research that retaining digital cable subscribers is becoming increasingly important for the cable industry, just as expanding the digital base becomes more challenging for operators.

Other findings from the Leichtman Research Group survey:

- Digital cable subscribers spend on average more than $56 per month – 50 percent more than analog cable subscribers;

- 28 percent of digital cable subscribers also get broadband Internet service from their cable operator – nearly three times the rate of analog cable subscribers;

- Of former digital cable subscribers, 40 percent no longer subscribe to cable TV at all;

- 15 percent of those who have never had digital cable said they are very interested in subscribing to the service, but 54 percent of the group said they have chosen not to get digital cable because it's too expensive.

"The major cable operators in the United States now deliver digital cable to about 30 percent of all subscribers, yet the industry added fewer digital subscribers last year than in 2001," said Bruce Leichtman, president and principal analyst for Leichtman Research Group. "To maintain growth of digital cable, operators will need to offer more reasonably priced step-ups from analog cable, and continue to add value to the digital cable offering via new channels and services like on-demand TV and HDTV."