Satellite TV Growing Fast & Losing Ground

Satellite TV Growing Fast & Losing Ground

According to The Media Audit, from 2000 to 2002 Satellite TV increased its subscriber base in 85 metropolitan markets by 27 percent. In spite of its significant growth it fell further behind in its battle for market share with Cable TV.

"While Satellite TV was growing by 27 percent, Cable TV was growing by 13 percent, but Satellite was building on a subscriber base of 11,632,000 while Cable was building on a subscriber base of 84,762,000," says Bob Jordan, co-chairman of International Demographics, Inc.

From 2000 to 2002 Satellite TV increased its aggregate penetration in the 85 markets measured by The Media Audit from 9.3 percent to 11.3 percent while Cable TV increased its market penetration from 67.7 percent to 73.1 percent.

  • Cable's subscriber count lead over Satellite grew from 73 million in 2000 to 81 million in 2002. Satellite grew from 11,632,000 subscribers in 2000 to 14,816,000 in 2002.
  • Satellite gained 3,184,000 new subscribers in the 85 metro markets while Cable gained 11,351,000 subscribers.
  • Satellite penetration declined in 22 of the 85 markets surveyed while Cable declined in four.

    Jordan says that advertisers on Cable and/or Satellite must be aware of market penetration at the local market level. Satellite market penetration extends from 20 percent of households in some markets to less than 5 percent in others. Of the six markets with the lowest satellite penetration rates, four are in New England. They are New Haven, Hartford, Boston and Providence-Warwick-Pawtucket.

    "It's very possible that the final market positions achieved by the two industries might be determined by broadband computer access which is provided by the Cable companies," says Jordan. "... if Internet access via Satellite becomes universally available that may impact the marketing success of Satellite TV."

    You can find out more here.

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