Cable Industry - Considerable Increase of its Customer Base

The cable television industry customer base increased considerably in 2007, especially as a result of the industry's expansion into the telephone market.

The total number of subscribers to the principal services offered by cable distributors (television, Internet access and telephone) reached 14.2 million on August 31, 2007. This was 1.6 million more subscribers compared with the same period in 2006. More than half of these new customers were telephone service subscribers.

This major advance into the telephone market was part of a process of diversification of services which started just over 10 years ago with the launch of Internet access services.

Canadian households and businesses continued to connect to the Internet via cable in large numbers, albeit at a slower pace than in the past. The number of subscribers to this service grew from 4.0 million in 2006 to 4.5 million in 2007.

As has been the case for several years, there were much fewer new customers for cable distributors in their traditional television services market. Nevertheless, in 2007 they reported the second best results in 10 years, with a net increase of 126,862 subscribers. For the first time since the introduction of digital satellite television in 1997, cable distributors did not lose market share to competitors using wireless technologies.

The number of wireless television services subscribers, largely by satellite, grew 1.4% to 2.7 million in 2007.

The addition of numerous clients to their telecommunications services in the past few years had a major impact on the source of operating revenues for the cable industry. Their television subscription revenues dropped from 92.1% of total subscription revenues at the beginning of the decade to 60.6% in 2007.

Source : Statistics Canada, Dec. 8, 2008.

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