Tuesday, September 23, 2003

WSJ: Digital Cable Suffers Higher Churn Than Analog

Leading North American cable operators (MSOs) are experiencing higher churn rates for their digital cable offerings (5% per month) than for their legacy analog services (2.5% per month), according to The Wall Street Journal. Citing market figures from The Yankee Group, the article notes that the sign-up rate for digital cable service has slowed sharply since 2001, leading some analysts to conclude that the long-term migration to all-digital TV is stalling. A chief customer complaint is that the dozens of additional channels provided by digital service are not watched. Industry executives quoted in the article say the remedy for this problem is VOD.
http://www.wsj.com