Stat of the day: cable companies now actually have more Internet customers

New figures show cable companies now have more Internet customers than TV customers:

For the first time, the number of broadband subscribers with the major U.S. cable companies exceeded the number of cable subscribers, the Leichtman Research Group reported today. Among other things, these figures suggest the industry is now misnamed. Evidently these are broadband companies that offer cable on the side.

To be sure, the difference is minimal: 49,915,000 broadband subscribers versus 49,910,000 cable subscribers. But even assuming a huge overlap in those numbers from customers who have both, the primacy of broadband demonstrates a shift in consumer priorities. Nearly all the major cable companies added broadband subscribers over the past quarter, for a total of nearly 380,000 new signups. Cable subscribers don’t have to worry about TV as they know it going away any time soon. But cable is on its way to becoming secondary, the “nice to have” compared to the necessity of having broadband access…

The better margins boil down to the fact that broadband is purely about access, while cable is about content. The crux of the cable side of the cable business is hatching deals with the makers of sports, news, and entertainment so there’s something to send through the box. And the costs can be steep. ESPN, the most pricey by far, tops $5 per subscriber per month.

The temptation with these numbers is to see a decline in television but I don’t think this is necessarily the case. TV has had remarkable staying power over the decades (it doesn’t hurt that the technology keeps getting better with better picture and sound as well as lots more channels) and Americans continue to watch a lot of it, on average. The Internet offers different possibilities compared to TV: access to more specific information, interactions with other Internet users, and a less passive overall experience. They also can be consumed together, presenting intriguing potential for interactions between the two.

Perhaps the bigger story here are the larger profit margins with the Internet…

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