Kagan's latest edition of its Broadband Cable Financial Datebook offers great optimism for the future of the cable industry. The newest report shows that investors are extremely happy with Internet Protocol voice services and how that should have a positive effect on lifetime value of the subscribers. The increase of revenue and retention of subscribers will be two of the outcomes that proceed from this.
The Cable Voice IP subscriptions will explode from 600k at the end of 2005 to a projected 6.5 million by the end of 2006. This is huge growth by any standard.
With consolidation of the industry growing, including the deal where Comcast and Time Warner bought Adelphia Communications, the majority of the benefits for users haven't even been implemented yet.
As one press release says concerning this:
"These include the exploitation of the potential of interactive advertising, greater telephony efficiencies, increased penetration into businesses, better marketing economics, and a rationalization of operating costs. According to Robin Flynn, Kagan senior analyst, 'These factors, along with the continued growth of core businesses, will combine to push cable residential revenue to $119.8 bil. by 2015, of which just 41% will be delivered by basic cable, vs. 47% in 2006.'"
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