Darkman
09-04-06, 10:20 PM
Kagan Forecasts HDTV Cable Network Revenues Will Reach $1.8 Bil. By 2010
According to a new study from Kagan Research, more than 21 mil. HDTV sets had been sold to consumers at year-end 2005, and at year-end 2006 penetration of HD sets into TVHHs is expected to reach nearly 30%. Just published, ECONOMICS OF HIGH-DEFINITION CABLE NETWORKS forecasts that by 2010 nearly 180 mil. HDTV sets will have been sold to U.S consumers, penetrating more than 81% of TVHHs.
"Due to capacity constraints and the fact that the number of HD households remains rather small, the market for HD cable networks is still nascent and by our estimates generated only $182 mil. in 2005. However, we believe this will grow to more than $1.9 bil. by 2010," said Derek Baine, senior vice president of Kagan Research. "While some HD nets are currently producing positive cash flow, in aggregate, HD networks are expected to lose money through 2006 as subscriber numbers and affiliate and ad revenue catch up with programming expenses."
According to the new report, MSOs will continue to be put under pressure to add more HD networks. The two major DBS operators, DIRECTV & EchoStar, have added subscribers at an impressive pace and Kagan estimates that at year-end 2006 DBS subscribers will total 29.4 mil., a full 30.3% of the multichannel universe, and forecasts growth of 2.6%/year, reaching 34.2 mil. in 2011...
( entire article is at the following source: http://www.redorbit.com/news/technology/640205/kagan_forecasts_hdtv_cable_network_revenues_will_r each_18_bil/index.html )
According to a new study from Kagan Research, more than 21 mil. HDTV sets had been sold to consumers at year-end 2005, and at year-end 2006 penetration of HD sets into TVHHs is expected to reach nearly 30%. Just published, ECONOMICS OF HIGH-DEFINITION CABLE NETWORKS forecasts that by 2010 nearly 180 mil. HDTV sets will have been sold to U.S consumers, penetrating more than 81% of TVHHs.
"Due to capacity constraints and the fact that the number of HD households remains rather small, the market for HD cable networks is still nascent and by our estimates generated only $182 mil. in 2005. However, we believe this will grow to more than $1.9 bil. by 2010," said Derek Baine, senior vice president of Kagan Research. "While some HD nets are currently producing positive cash flow, in aggregate, HD networks are expected to lose money through 2006 as subscriber numbers and affiliate and ad revenue catch up with programming expenses."
According to the new report, MSOs will continue to be put under pressure to add more HD networks. The two major DBS operators, DIRECTV & EchoStar, have added subscribers at an impressive pace and Kagan estimates that at year-end 2006 DBS subscribers will total 29.4 mil., a full 30.3% of the multichannel universe, and forecasts growth of 2.6%/year, reaching 34.2 mil. in 2011...
( entire article is at the following source: http://www.redorbit.com/news/technology/640205/kagan_forecasts_hdtv_cable_network_revenues_will_r each_18_bil/index.html )