2004 Year-End Industry Overview
10 Key Cable Industry Events of 2004
Live Audio Webcast of Year-End Briefing (Windows Media Player | Real Player)
Introduction and Rollout of Advanced Broadband Services
Mark a Year of Growth for Cable in 2004
Stable Regulatory Environment Enables Cable Operators
and Programmers to Respond to Consumer Needs
WASHINGTON, DC – A stable regulatory environment that has created a positive climate for cable companies to invest in new technology set the stage for a bellwether year in 2004 that resulted in the growth and introduction of advanced broadband services by cable operators and programmers, according to Robert Sachs, President & CEO of the National Cable & Telecommunications Association (NCTA).
At a year-end briefing for reporters today that highlighted the cable industry's achievements during the year, Sachs noted that advanced and popular services such as Video-On-Demand (VOD), High-Definition Television (HDTV), and Voice over Internet Protocol (VoIP) telephone service became fixtures in the cable marketplace during 2004 while established products such as digital cable and high-speed Internet access continued to broaden their strong foothold with the American public.
“Cable's success always has been based on the ability of our companies to respond quickly to consumer needs. That's led to our $95 billion capital investment over the past eight years to provide digital broadband services to customers,” Sachs said. “The achievements of 2004 – and particularly the new rollouts of HDTV, Video-On-Demand and Voice over Internet Protocol – are the latest examples of cable's strengths in a very competitive telecommunications marketplace.”
Sachs noted that the availability of cable broadband services has reached a new high in 2004, with 91 percent of homes now passed by an upgraded fiber-optic cable network that can provide a host of advanced services. About 25 million cable customers now subscribe to digital cable services, an increase of nearly 13 percent over a one-year period, he said, while high-speed Internet access via cable modems now counts 20 million customers, growth of 24 percent in one year.
In addition, Sachs said, the number of customers for telephone service offered by cable companies, which had remained flat at about 2.5 million customers for the past several years, will reach three million by the end of 2004, based on the introduction of IP-based voice services.
While growth in new products and services has been significant, cable programming services also have experienced further and significant growth in viewership, extending their collective lead in viewers over the nation's broadcast networks, Sachs noted. For instance, for the 2003-2004 television season that concluded last spring, cable networks collectively outpaced the seven broadcast networks during primetime by 2.7 share points, with a 49.9 share, a first for cable.
“It's clear that in terms of progress in both services and programming, 2004 was a year of significant growth for our industry,” Sachs said.
Sachs also said that 2005 is likely to feature a number of significant developments that could have substantial impact in the cable and telecommunications marketplace, including a U.S. Supreme Court decision in the Brand X case dealing with the regulatory classification of cable modem service; possible action by the FCC and Congress on the digital TV transition; and commencement of an anticipated review of the Telecommunications Act of 1996.
NCTA today also released its 2004 Year-End Overview, featuring a summary of cable growth and developments. A copy of the report can be found on NCTA's Web site, www.ncta.com, and hard copies are available from the NCTA Communications & Public Affairs Department, by calling 202/775-3629.
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NCTA is the principal trade association of the cable television industry in the United States. NCTA represents cable operators serving more than 90 percent of the nation's cable television households and more than 200 cable program networks, as well as equipment suppliers and providers of other services to the cable industry.