With the number of analog cable TV subscriber
households either flat or declining in many developed countries, the cable TV
industry's future depends more and more on cable modem service and digital video
services, reports In-Stat

Cable Modem Service, Digital Cable TV Critical To Cable Industry Growth

SCOTTSDALE, Ariz., November 2, 2005 With the number of analog cable TV subscriber
households either flat or declining in many developed countries, the cable TV
industry's future depends more and more on cable modem service and digital video
services, reports In-Stat (http://www.in-stat.com). The high-tech market research
firm states that there are currently 44 million digital cable TV households around
the world, and it further projects that the total number of worldwide digital cable
TV subscribers will rise to over 108 million by the end of 2009.  At the same time,
In-Stat notes that worldwide cable modem subscribers are projected to reach 50
million at the end of 2005, and rise to 99 million by 2009.  

"As key parts of a cable operator's "triple play" service bundle, cable modem and
digital cable video subscriber growth patterns receive a great deal of attention
from the cable industry," says Mike Paxton, In-Stat analyst. "In most regions of the
world, the near-term growth trends for both services remain positive, although
alternative video and high-speed data service bundles will pose a serious challenge
to the cable industry in the years to come."  

A recent report by In-Stat found the following:

- There are currently 347 million worldwide cable TV subscriber households.  Three
countries, China, India, and the United States, account for 60% of worldwide cable
TV households. 
- Growth in US cable TV subscriber households will be modest over the next few
years.  US cable TV subscriber households are projected to rise from 69 million at
the end of 2005 to 72 million in 2009.  However, cable TV subscriber growth is
projected to be significant in both China and in the Asia-Pacific region.   
- North America accounts for 55% of all worldwide cable modem subscribers. The
Asia-Pacific region is the next largest region with 24% of worldwide cable modem
subscribers. 
- Cable modem services are becoming a "cash cow" for cable TV operators.  Worldwide
revenues grew to $19 billion in revenues in 2004, and are projected to reach $22
billion this year.