Studies

Convergence in the media market - a renaissance for broadband cable

When the cable networks made their way into Western Europe, they certainly represented an enormous improvement with regard to quality and variety of TV stations compared to the terrestrial analogue reception which had prevailed until then. However, for a long time, cable networks were "merely" an infrastructure for distributing analogue television which surely brought in good margins, but was relatively unspectacular in itself.

Since the second half of the 1990s, technical development has made possible the additional transmission of digital television as well as broadband internet and voice telephony by cable. Driven by the prospect of additional sales through this already existing infrastructure, cable has experienced a renaissance in recent years: The network upgrade with regard to digitalisation and back-channel capability is being expedited with great urgency and considerable investment. At the same time, the additional possibilities are being applied in new products and product logics (Keyword: Triple Play). A wave of consolidation between the cable network providers in Europe has begun.

Today, the cable network providers in Europe are among the central players in supplying multimedia applications to the population. And the development is not at all complete. In addition to an expansion of the customer base, the emphasis is above all on increasing the sales per customer by means of new products, services and contents that result from the convergence of television and
internet.

The study deals with cost-efficient growth strategies for cable network
operators on their continuing route into the converging media market.