Satellite TV Is The Future - Cable TV Is Doomed
Dave Neville
Since the introduction of satellite TV the number of homes using cable TV has declined rapidly. and will continue this downward slide in the years ahead. The aggressive satellite TV companies are progressing at the expense of the cable TV providers and the cable companies seem powerless to halt this decline.
Cable TV was introduced to allow families living in remote country regions to enjoy the benefits of experiencing the national TV programming channels being enjoyed by city-based families. The end of the 1990s saw the penetration of cable TV reach its apex. About 70% of American homes had signal transmission via cable and from hereon this percentage started to fall away.
While cable delivered a signal to each home via either an above ground or an underground cable, the signal for this new innovation came from satellites located over the Caribbean Sea. Reception at each subscriber was through a small circular dish usually affixed to the roof of a building. As long as the dish had an uninterrupted view of the southern sky, a TV set would be able to display a perfect picture and sound.
The satellite TV providers operate very much in the same way as the cable companies. They offer various packages through monthly subscriptions that usually require a contract from the subscriber. Most of the channels available on cable are also shown on satellite, so a family switching over to satellite TV from cable would still be able to enjoy their favorite program,
The ever increasing advance of satellite TV into the homes of American families has resulted in a decline in the usage of cable TV. This earlier technology is doomed to go the way of the dinosaurs - whilst it may be some time away, it will eventually happen.
So what are the problems facing the cable TV industry These can be divided into two - firstly the technological problems, and secondly the threats from assertive satellite competitors.
Cable TV needs to embrace better technology. 1) As the TV signal is delivered to subscribers via cable, then bad weather conditions may affect these cables. Satellite transmission is not affected by adverse weather conditions. 2) Cables cannot deliver the much larger number of channels that satellite transmission can. Cable therefore cannot match satellite when it comes to variety of channels on offer. 3) Picture and sound quality with cable is inferior to that of satellite - satellite TV signals are 100% digital something that the cable companies cannot easily provide. 4) The nature of satellite TV means its more easier to incorporate new technologies into the system.
Threats from Aggressive Competitors 1) As the satellite companies are chasing market share, they are keeping their subscription fees as low as possible. The cable companies' fees have been increasing at a greater rate than those of their satellite competitors. 2) Both the major players in the satellite TV industry offer new subscribers free equipment and installation, such as a satellite dish, set-top equipment etc. 3) The installers of the satellite systems offer a range of free gifts, with the satellite companies offering special deals and prices for new customers. 4) The satellite signal enables the delivery of a larger number of channels. This factor alone is encouraging large numbers of families to dump cable TV. 5) Numerous industry surveys point to satellite TV companies placing greater emphasis on customer service than the cable operators. 6) The ever-increasing number of subscribers to satellite TV is in itself encouraging families to switch over.
Whilst the cable companies have served the American public well in the past, that is no guarantee that their future is secure. Satellite transmission provides many technological advantages that the cable companies cannot provide at present. In order to have a future in this progressive industry, the cable companies need to embrace better technology.
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