• by Wayne Friedman , June 12, 2008

Cable system operators continue to be hurt at the expense of increasing growth among satellite and telco video distributors, according to the Television Bureau of Advertising (TVB).

Now there are 56 markets where alternative delivery system (ADS) distributors make up 40% or more of homes that pay for TV on a monthly basis, according to the TVB. Last month, ADS penetration reached 28.1% of all U.S. television households--up a full percentage point over the same month a year ago.

Of those who pay for TV channels--versus those who only get free-over-the-air channels--ADS make up 31.7% of all such TV households.

TV satellite distributors make up virtually the entire ADS market--now at 27.7% of TV households, versus 26.5% a year ago.

The TVB, the advertising group promoting local TV station ad efforts, says advertisers should take note of cable systems' erosion and what it can do to advertiser TV media buys. That said, the TVB also notes that cable distribution over the year actually was up--albeit just two-tenths of one percent to 61.4%.

In the top 50 markets, eight markets--Albuquerque-Santa Fe; Salt Lake City; Dallas-Ft. Worth; Greenville, S.C.; Sacramento-Stockton-Modesto; Birmingham, Ala.; St. Louis; and Los Angeles--are over the 40% mark in terms of those subscription-paying homes using ADS distributors.