30 June 2000

A report published Wednesday by the Yankee Group for the Satellite Broadcasting & Communications Association shows satellite television is growing at the expense of cable. According to the study, digital broadcast satellite services are making significant inroads in areas that have cable networks, with 70% of new DBS subscribers signing-up despite having cable available to their households.

In December, satellite television services began offering local broadcast output in the largest US cities, and around 46% of all DBS households and 56% of new DBS households are now able to receive local TV transmissions. “These numbers are very encouraging, but this is not a time for complacency," said Chuck Hewitt, president of the SB&CA.

However, Banc of America said in a research report unveiled this week that the belief that DBS would eventually kill cable is too extreme. The bank forecasts that sentiment could swing back to cable in the second half of this year because digital cable services will become widely available by the end of the year, creating tough competition for DBS operators in the fourth quarter.

News Source: CampaignLive (UK)