Commentary

Satellite Leading Video Provider in Rural America

Satellite Leading Video Provider in Rural America

According to LRG's third annual study: "Cable & DBS: Competing for Customers 2005," rural areas nationwide now have more Direct Broadcast Satellite (DBS) subscribers than cable subscribers. DBS now accounts for over 25 million subscribers nationwide.

  • 42% of individuals who define themselves as living in a rural area report that they subscribe only to DBS vs. 38% last year
  • 37% to cable only, equal to last year
  • 2% to both cable and DBS

While DBS has made recent gains in urban and suburban areas, cable still has nearly a 4:1 subscriber advantage in these areas

  • 63% report that they subscribe only to cable vs. 65% last year
  • 17% to DBS-only vs. 13% last yeat
  • 2% to both cable and DBS

Industry by the Numbers - (as of the end of 1Q 2005)

Top 10 Cable MSOs in the U.S.

 

Passings
(million)

Subscrib'rs

Avail

 Penetration

Net Adds in 1Q '05

Net Adds in 1Q '04

Basic Cable

108.6

58.5

 

53.9%

22,400

11,350

Digital Cable

108.1

24.7

99%

22.8%

634,500

659,000

Broadband Net

105.9

20.9

97%

19.8%

1,190,000

1,165,000

Telephone

35.7

3.5

33%

9.9%

374,000

107,000

Sources: The Companies and Leichtman Research Group, Inc.

 

 

DBS

 

TotalSubs (million)

Net Adds in 1Q '05

Total New Subscribers

Subscriber Acquisition
Cost

Avg Rev Per Sub/Mo

DIRECTV

14.4

505,000

1,137,000

$656

$65.78

EchoStar

11.2

325,000

801,700

 $623

$57.00

Total DBS

25.7

830,000

1,938,700

 

 

Sources: The Companies and Leichtman Research Group, Inc.

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