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Study: Verizon FiOS Cuts Into Cable, Satellite

  • OneTRAK, Thursday, August 9, 2007 11:30 AM

A look at the trend of wireline video subscriber patterns in a few dozen Massachusetts communities after the introduction of Verizon's FiOS TV contains a mixed bag of news for the cable business. While initial incumbent cable subscriber losses can exceed 10%, as many as 40% of FiOS TV subscribers may be coming from satellite.

That finding is from a study by OneTRAK into subscriber patterns for Verizon in 34 cities and towns with a combined 285,000 homes. Comcast is the incumbent cable operator in all, while RCN Corp. offers service in nine. And while Verizon may have expanded the pie a bit, it likely wasn't by more than a few percentage points.

Thee study notes that it takes several years for a true pattern to emerge in the marketplace: "Verizon will likely continue to see double-digit penetration gains in markets where it launches FiOS TV service." Of course, the study was just a 90-day snapshot of a handful of towns and "changes in product offerings and marketing tactics will all play into individual market dynamics, which can alter the growth and decline curves of the combatants."

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