Dozens of Multichannel TV Markets Becoming Hyper-Competitive

Kagan: the number of multichannel TV markets positioned to experience hyper-competition will grow from 22 in 2006 to 47 by 2011 as digital cable, IPTV and digital terrestrial (DTT) services gain ground. T

By adding IPTV and DTT to the competitive mix, multichannel competition transforms dramatically. These emerging platforms accelerate new service offerings while putting pressure on pricing, forcing cable and satellite operators to retool or die.

• Once one operator in a market launches triple-play packages, all operators must follow or face significant churn

• The introduction of DTT can dramatically reduce cable and satellite growth while fueling IPTV service options

• Satellite operators face the toughest challenge in hyper-competitive markets as they must secure return paths and broadband infrastructure to maintain competitive viability

• Hyper-competitive markets produce low-cost entry packages across all platforms which are often based on smaller video packages approaching a la carte models

• Exclusive sports and movies license deals become crucial as platforms fight for clear competitive differentiation

global Multichannel Markets Publ 20061012