Cable needs to focus on providing video value to battle telco TV and OTT, says Strategy Analytics

Cable's video losses have become telco TV and satellite gains. While cable lost over two million video customers throughout 2010, telco TV and satellite service providers added 273,000 new subscribers overall.

During Q1 2011 alone both Verizon and AT&T (NYSE: T) added more video subscribers to its roster. AT&T added 218,000 new subscribers for the U-verse TV service, while Verizon (NYSE: VZ) added 192,000 net FiOS TV subscribers, bringing their video totals to 3.2 million and 3.7 million video subscribers in service, respectively.

Meanwhile, Time Warner Cable (NYSE: TWC) lost 66,000 basic subscribers in Q1 2011, bringing its total to under 12 million video subscribers.

A Strategy Analytics report argues that U.S.-based cable companies need to not only take over the top (OTT) video seriously, but also telco TV and satellite.

So what's driving cable subscribers to flee? Ben Piper, Director of the Strategy Analytics Multiplay Market Dynamics service, said the problem is not the housing market or the economy but it "is one of value perception."

And while the "cord cutting" or cancelling Pay TV concept can't be ignored, Piper added that it is 'check engine light' than a death knell for Pay TV," meaning that cable needs to focus on adding value to prevent further video subscriber churn.    

For more:
- see the release

Related articles:
AT&T wireline results in Q1 reflect strong returns on consumer broadband, IP business services
Verizon's Q1 wireline results get EBITDA boost from FiOS and enterprise services, but revenue misses forecasts
High-speed data drives Time Warner Cable growth in Q1, but 66,000 basic video subs depart

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