• by David Goetzl , September 7, 2007

A new study by SNL Kagan has good news for cable.

The company says prospects for cable operators suggests they will continue to produce healthy margins, despite increased competition from satellite operators and the aggressive telco TV providers.

There are several reasons for Kagan's optimism. The triple play--which attracts customers, via a bundle of TV, phone and Internet access--will continue to grow, and a new advertising revenue stream could help. Kagan says the industry "promises to keep the growth engine humming in the future."

The report projects that cable operators will grow revenues by $36.3 billion for 2007 to $115.4 billion by 2012. Average revenue per subscriber will increase to a considerable $140.08.

Kagan also says the number of digital cable subscribers is more than 33 million, and may grow another 4 million this year.