Monday, August 23, 2010

SNL Kagan: U.S. Multichannel Market Has Decline for First Time in History

Cable Leads the Quarterly Decline, DBS and Telco Video Up 08/23/2010 San Francisco - New market analysis from research bellweather SNL Kagan announced today points to high unemployment and the crash of the housing market as leading factors which made 2Q 2010 the first quarter in history in which the U.S. multichannel video market was in decline.

Copyright 2010 SNL Kagan
The firm states "the U.S. multichannel market delivered its worst performance on record in the second quarter, losing 216,000 customers compared to a 378,000 gain in the same period last year."

Data from the firm demonstrates that the aggregate subscriber numbers for cable, direct broadcast satellite (DBS) and telco video saw a drop to 100.1 million in 2Q, with cable leading the sector to its net loss.  While "DBS and telco managed to add 81,000 and 414,000 subscribers respectively," according to the findings "cable suffered its worst quarterly video loss to date, plunging by 711,000 subscribers."  Within that large loss by cable operators, analysis reveals "six of the eight MSOs reporting their worst quarterly video losses as well."

SNL Kagan Analyst Mariam Rondeli summed up the report saying, "Although it is tempting to point to over-the-top video as a potential culprit, we believe economic factors such as low housing formation and a high unemployment rate contributed to subscriber declines in the second quarter."

The data announced today is part of the SNL Kagan Unlimited Information Service.
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