Skip to main content

Cable TV Operators Diversify Their Revenue

Cable TV service providers are increasingly seeking alternative revenue streams to supplement their income from residential video services, according to a market study by ABI Research.

Four additions offer the greatest promise: voice telephony, broadband data services, SMB and cellular backhaul, and advertising. While these play a supporting role in the overall cable revenue mix today, their importance will grow strongly with time.

"ABI Research expects that in 2007, residential video will account for about $170 billion in revenue worldwide," says vice president and research director Stan Schatt. "Voice, data, SMB/cellular backhaul, and advertising add a further $92 billion. However in 2012, the end of our current forecast period, those figures will be about $268 billion and $279 billion respectively, showing the increasing importance of these alternative services. Advertising revenues alone will grow from $40 billion this year to $194 billion in 2012."

This shift in emphasis is taking place for different reasons in different regions.

In North America, the motivation stems from video market saturation: new subscriber numbers will show only small growth, or perhaps even losses to telco and satellite competition. So alternative revenue streams are seen as essential.

In Asia, there is still room for growth in the subscriber base, but even there, cable operators are starting to realize the importance of advertising and other alternative services, and their associated new revenue potential.

These trends affect and are affected by technologies as well. Cable operators in North America and some other markets are starting to equip their core networks with Ethernet so that they can support business services more easily.

"The rise of advertising as a revenue alternative will produce a profound change in how things are advertised," adds Schatt. "This will have an impact on technologies as well as revenues, and even in the way that advertising agencies construct ad campaigns, which will feature more interactivity."

Popular posts from this blog

Industrial and Manufacturing Technology Growth

In an evolving era of rapid advancement, market demand for innovative technology in the industrial and manufacturing sectors is skyrocketing. Leaders are recognizing the immense potential of digital transformation and are driving initiatives to integrate technologies into their business operations.  These initiatives aim to enhance efficiency, reduce costs, and ultimately drive growth and competitiveness in an increasingly digital business upward trajectory. The industrial and manufacturing sectors have been the backbone of the Global Networked Economy, contributing $16 trillion in value in 2021. Industrial and Manufacturing Tech Market Development   This growth represents a 20 percent increase from 2020, highlighting the resilience and adaptability of these sectors in the face of unprecedented challenges, according to the latest worldwide market study by ABI Research . The five largest manufacturing verticals -- automotive, computer and electronic, primary metal, food, and machinery -

Rise of AI-Enabled Smart Traffic Management

The demand for smart traffic management systems has grown due to rising urban populations and increasing vehicle ownership. With more people and cars concentrated in cities, problems like traffic congestion, air pollution, and greenhouse gas emissions are pressing issues. Since the early 2000s, government leaders have been exploring ways to leverage advances in IoT connectivity, sensors, artificial intelligence (AI), and data analytics to address these transportation challenges. The concept of a Smart City emerged in the 2010s, with smart mobility and intelligent traffic management as key components.  Smart Traffic Management Market Development Concerns about continued climate change, as well as cost savings from improved traffic flow, have further motivated local government investment in these advanced systems. According to the latest worldwide market study by Juniper Research, they found that by 2028, smart traffic management investment will be up by 75 percent from a 2023 figure of

AI Software Market will Reach $251 Billion

The growth in Artificial Intelligence (AI) software could lead to many benefits. As more organizations adopt AI, they may become more efficient, productive, and able to offer improved products and services. The global job market could also expand, with demand growing for roles like AI engineers and technicians. Plus, AI apps could enable breakthroughs in fields like healthcare, transportation, and energy. The worldwide AI software market will grow from $64 billion in 2022 to nearly $251 billion in 2027 at a compound annual growth rate (CAGR) of 31.4 percent, according to the latest market study by International Data Corporation (IDC). AI Software Market Development The forecast for AI-centric software includes Artificial Intelligence Platforms, AI Applications, AI System Infrastructure Software (SIS), and AI Application Development and Deployment (AD&D) software (excluding AI platforms). However, it does not include Generative AI (GenAI) platforms and applications, which IDC recent