Steve Mehs
02-10-03, 04:39 AM
Banc of America cable/satellite analyst Doug Shapiro reiterated his past comments on competition between the two multichannel platforms, saying the battle for viewers will settle down between the two sides as they focus on their financial numbers.
"In general we think that although DBS remains a very potent competitor and will continue to take share from cable for the foreseeable future, we believe the competitive threat is moderating," Shapiro said in a research note released Friday.
His reasons: DBS sub growth is slowing; both EchoStar and Hughes are starting to focus more on profitability than market share; and DBS economics don’t leave much room for price discounting. Shapiro also said he believes the market is big enough for both cable and DBS to hit consensus subscriber growth estimates without a battle for customers.
In addition, for the long-term, the small dish will have trouble competing with cable's video/broadband/telephony bundle, Shapiro said.
"We believe the ability to bundle services will become increasingly important to consumers in the next several years," Shapiro said. "This is simply because it should be simpler and cheaper to buy multiple services from one provider than it will be to buy multiple services a la carte. In this environment, we expect that consumers will be indifferent to technology."
Shaprio said satellite TV services are projected to end 2003 with 21.617 million customers. DBS subscribers should peak at just about 30 million by the end of the decade, he said.
From SkyReport (http://www.skyreport.com/skyreport/feb2003/021003.shtm#one) (Used with Permission)
"In general we think that although DBS remains a very potent competitor and will continue to take share from cable for the foreseeable future, we believe the competitive threat is moderating," Shapiro said in a research note released Friday.
His reasons: DBS sub growth is slowing; both EchoStar and Hughes are starting to focus more on profitability than market share; and DBS economics don’t leave much room for price discounting. Shapiro also said he believes the market is big enough for both cable and DBS to hit consensus subscriber growth estimates without a battle for customers.
In addition, for the long-term, the small dish will have trouble competing with cable's video/broadband/telephony bundle, Shapiro said.
"We believe the ability to bundle services will become increasingly important to consumers in the next several years," Shapiro said. "This is simply because it should be simpler and cheaper to buy multiple services from one provider than it will be to buy multiple services a la carte. In this environment, we expect that consumers will be indifferent to technology."
Shaprio said satellite TV services are projected to end 2003 with 21.617 million customers. DBS subscribers should peak at just about 30 million by the end of the decade, he said.
From SkyReport (http://www.skyreport.com/skyreport/feb2003/021003.shtm#one) (Used with Permission)