Skip to main content

Cable TV Business Transformation Initiatives

Faced with more competition in their Pay-TV business, cable operators worldwide are distracted by the all-digital transition deadlines imposed upon them by governing bodies, the available options for upgrading their network, and the slow migration to an IP-based network for greater interactivity.

Moving to 1 GHz networks is often the recommended alternative for network and bandwidth upgrading, but comes at a hefty first-year cost. Apparently, the other alternatives have yearly capital and operational costs that are prohibitive over time.

"The cable sector has all these and other business transformation initiatives to contend with as they also juggle customer satisfaction, retention, and addressable advertising models that don't invade privacy," says ABI Research principal analyst Robert Clark.

What is also occurring in Europe is a slow but steady consolidation of cable operators. Many predicted that would also hold true in the U.S., but that has not been the case.

Cable operators are mainly pursuing three avenues in their quest for greater bandwidth, although not all simultaneously. The first is reclaiming bandwidth via the analog-to-digital switchover now taking place in many countries.

The second, Switched Digital Video, that is expected to ramp up once the switchover is complete, brings channel-sharing benefits to downstream transmissions. The third, and considered the ultimate, option recommended by top-tier suppliers is a complete upgrade to 1 GHz networks.

Cable operators are being very selective right now about how and where to invest in their networks and capabilities, while considering network-based and premises equipment-based (centralized and distributed) alternatives.

ABI's latest report covers core market and technology issues such as the transition to Digital TV, the shift in consumer TV viewing patterns, operator's responses to consumer demand for time- and place-shifting TV, network-bandwidth upgrade options, and the launch of new services.

Popular posts from this blog

AI Supercycle: Server Market Growth Surge

The worldwide server market has entered a new phase defined almost entirely by artificial intelligence (AI) infrastructure economics rather than traditional enterprise refresh cycles.   The latest market data shows robust growth and a structural shift in where value is created, who captures it, and which architectures are setting the pace for the next decade. IDC reports that worldwide server revenue reached a record $112.4 billion in the third quarter of 2025, representing a striking 61 percent year-over-year increase compared to the same quarter in 2024. For context, this means the market is adding tens of billions of dollars in incremental quarterly spend, driven overwhelmingly by AI and accelerated computing requirements.  IT Server Market Development Over the first three quarters of 2025, server revenue has already reached $314.2 billion, meaning the market has nearly doubled in size compared to 2024, underscoring how AI buildouts have compressed several years of exp...