US MSOs will soon have more broadband subscribers than video subscribers for the first time in the industry’s 65-year history, reports Moody’s.
In a new report issued last week, Moody’s Investors Service predicts that US cable operators will have more high-speed data customers than pay TV customers by next year. It calculates the crossover point is already occurring, with both services now boasting about 50 million subscribers.
A Pew Research Center study showed that 53% of adults said it would be “very hard or impossible” to give up their broadband service while just 35% said the same for TV.
Several major US MSOs already have more broadband customers than video customers.
Both Time Warner Cable and Charter — the second- and fourth-largest US MSOs — now have more broadband than video customers.
Cablevision Systems may well have reached the crossover point at the end of the second quarter.
But companies with significant overlap with Verizon’s FiOS and AT&T’s uVerse, such as Cablevision and Time Warner Cable, will especially need to invest in a competitive video product to survive, notes Moody’s.
Customers are displaying a slow but steady shift away from cable to satellite or IPTV (fiber, such as Verizon FiOS or AT&T uVerse) television programming.
Verizon sold its western holdings to Frontier Communications and is not laying new fiber. At the close of 2013, AT&T had 10 million uVerse high-speed Internet customers while Verizon had about 5.5 million FiOS customers.