Subscriber Growth Slows for Satellite TV
In the last year, Satellite TV providers DirecTV and EchoStar experienced a 29% drop-off in the rate of net new subscribers, while the rate of defection from cable television has also decreased by almost half since the previous year. Analysts are in disgreement over the causes of this slow-down.
Many attribute cable’s gains to its unique ability to offer packages that include broadband internet service, television programming, and internet phone service. This so-called ‘triple play’ offers consumers lower overall prices and more convenience.
While acknowledging this fact, other analysts prefer to attribute the slowdown to basic mathematics. Bank of America’s Douglas Shapiro is quick to point out that, as a subscriber base grows, net additions are bound to slow as well.
Regardless, the next move for satellite TV providers is assuredly to get involved in broadband internet service. This is really the only way to confront the advantages offered by cable subscription. Both DirecTV and EchoStar are currently exploring their options in this regard.
[Via MSN]
