Parsing the entire telecom market, business services is second only to wireless in revenue. US cable operators generate over $7 billion in annual business service revenues. Operator market share is growing, but real success lies in enterprise & medium-sized business penetration. This study details MSO & telco business services, including revenue & unit forecasts for voice, data, & video services to small, medium & large enterprise segments. It details a range of services, including Ethernet, private line, voice, hosting, optical transport, & video; and examines CATV operators' use of existing fiber networks to support telecom services.
Any twenty-one year old in the US can explain to you why the business model that cable TV operators depended on for so many years will soon become moribund. As entertainment services such as Netflix, Hulu, and Roku are distributed on-demand via the Internet, the programming and distribution model that the cable industry invented some 60 years ago becomes less and less relevant to the cohort groups that will become the biggest buyers of entertainment services and -not coincidently-that practically live with the Internet always on.
So if the business as usual path looks fraught with problems, where can the cable industry go from here? One trend that has already been well documented is creating content and using that fresh material-which can be accessed through no other distribution system than cable-to hold on to the consumer audience.