| Commercial services, especially those delivered to small- and medium-sized
enterprises, are an increasingly critical imperative for U.S. cable
operators. The revenue and margins delivered by these services will be the
main growth engine for the industry over the next few years. In this report,
we update our forecast of cable commercial services revenues. We also
provide an overview of the commercial services strategies of the leading
operators, and analyze their existing and emerging capabilities. Fnally, we
detail the critical success factors for the cable industry in targeting the
SMB opportunity.
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- TABLE OF CONTENTS
- Introduction
- The Opportunity
- Impact of the Recession on MSO Commercial Services Opportunities
- Cable MSO Commercial Services Offerings
- Historic Communications Revenue and Forecast
- TABLE OF FIGURES
- Figure 1: U.S. MSO Publicly Stated Estimate of Addressable SME Market
- Figure 2: U.S. MSO Commercial Customers and Revenue, YE 2008
- Figure 3: U.S. MSO Commercial Services Offerings, Mid-year 2009
- Figure 4: U.S. MSO Commercial Services Revenue Forecast 2007 – 2013
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FOR IMMEDIATE RELEASE
July 16, 2009
Cable Companies to Garner $16 Billion in Revenue from Businesses by 2013
Silver Spring, MD -- U.S. cable companies historically have focused on serving up lots of TV fare and other communications services for home consumption. But within the next five years, they will generate annual revenue of nearly $16 billion by serving businesses, according to a new forecast from Pike & Fischer.
The bulk of that revenue will be going to the nation’s three top cable operators—Comcast, Time Warner Cable, and Cox Communications, according to the study. But smaller cable companies will also generate increasing amounts of revenue from business customers, the market research provider concludes.
Today, cable commercial services revenue makes up approximately 4 percent of total cable revenue in the U.S. as of 2008. By 2013, that should rise to about 10 percent of total cable revenue, P&F projects.
“The growth rates for residential services are starting to level off. As a result, commercial services, especially those delivered to small- and medium-sized enterprises, are an even more critical imperative for cable operators,” says Tim McElgunn, chief analyst for P&F’s Broadband Advisory Services and author of the report. “The revenue and margins delivered by these services will be the main growth engine for the industry over the next few years.”
While some larger cable companies have developed sophisticated data service offerings aimed at larger enterprises, most cable companies are finding success delivering basic services such as broadband data and voice plans to small- and mid-sized companies, McElgunn says.
Pike & Fischer, a BNA business, offers a host of legal and business products covering the communications industry. The report, Cable Commercial Services Strategies: Analysis and Revenue Forecast, 2nd Edition, is priced at $599
and is available for purchase at www.broadbandadvisoryservices.com. For analyst commentary or to request a briefing, contact Tim McElgunn at 856-751-6723 / tmcelgunn@pf.com.
For information about Pike & Fischer’s Broadband Advisory Services, visit www.broadbandadvisoryservices.com or contact Jonathan Wentworth Ping at 973-718-4703 / jping@pf.com.
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Tim McElgunn
Tim McElgunn, our Chief Analyst, has more than 20 years of experience and expertise in market sizing, forecasting, segmentation and share analysis in emerging and legacy segments of the telecommunications industry. He focuses on the business strategies and competitive status of U.S. cable companies, telephone companies, satellite TV providers and broadband-enabled application providers such as Google, Yahoo and Microsoft. Before joining BAS in November 2006, Tim headed up U.S. consumer broadband analysis for eight years at Stratecast, a division of Frost & Sullivan. He also held senior analyst positions at both Datapro/NBI and Gartner Dataquest. Contact Tim at 856-751-6723 / tmcelgunn@pf.com.
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