According to Susan Eustis, lead author of the study, “Cable modems bring Internet to the home. They are used by the cable industry to deliver Internet services. They are useful to the cable TV services vendors as a way to provide new types of entertainment and sports oriented services into the home and promise significant growth to the cable industry as bundled video channels continue to have widespread appeal. Next generation cable modem and home IP gateway devices offer significant IP based functionality to the home. Cable modems are useful particularly in the US, with the cable video business model spreading worldwide. Markets are poised for significant growth. Video content is proliferating.”
Cable TV services providers offer sports, news, shows, real time entertainment, and music. Videos are mainstream to cable TV offerings in a market environment where video is set to replace data and text in many, many instances. Religion, food, travel, medicine, and weather are specialty TV offerings. Cable TV has them all. The ability to bundle these offerings will not be replaced by single stream offerings. The Internet is good for reruns and user generated content, but the advertising bundle implemented by cable TV has distinct advantages for viewers.
Cable industry interrupt-based advertising is accepted by viewers as a tradeoff to the significantly higher cost of direct purchase, providing a sustainable cable TV industry business model. Cable TV has enormous value because people can watch channels they might not otherwise watch as part of a package.
Bundling works for video content in a way that it does not work for the music industry. People want to create their own music bundles, but video is far more complex. Bundling in the manner the cable TV industry provides is very sophisticated and is not at all analogous to the music industry. What is a good show one year is not good the next. The ability to flip back and forth give people needed ability to change their viewing habits, without lock-in from single download options is of significant value to users.
The aim of a cable TV network has evolved to support delivery of digital video and two-way services such as high speed data, video on demand, and telephony.
Worldwide there is a trend for cable operators to increase their investment in their networks.