Satellite TV Is Leaving Cable TV Behind

Since the introduction of satellite TV the number of homes using cable TV has declined rapidly. and will continue this downward slide in the years ahead. The aggressive satellite TV companies are progressing at the expense of the cable TV providers and the cable companies seem powerless to halt this decline.

Cable TV was introduced to allow families living in remote country regions to enjoy the benefits of experiencing the national TV programming channels being enjoyed by city-based families. The end of the 1990s saw the penetration of cable TV reach its appex. About 70% of American homes had signal transmission via cable and from hereon this percentage started to fall away.

The major difference between cable and satellite TV was the method of transmitting the signal. Cable companies used either an overhead cable affixed to poles, or an underground cable. The satellite companies, on the other hand, made use of more up-to-date technology by sending a signal to a stationary satellite situated above the Caribbean sea and then diverting it to earth where it was picked up by small dishes situated usually on the roofs of homes.

Like cable TV, the satellite TV providers' packages are available through a monthly subscription and a 1 year contract. Most of the channels shown on cable are also available with the satellite companies, so a family switching over to satellite TV from a cable TV provider will still be able to enjoy their favorite programs.

The rise and rise of the penetration of satellite TV into American homes has come at the expense of cable TV. Cable TV is on the decline at an ever increasing rate, and although its demise may be some time away, it will eventually happen. Not only is this an example of superior technology replacing inferior technology, the downfall of cable TV is being accelerated by the overtly aggressive promotion policies of the satellite TV providers.

So what are the problems confronting the cable companies? These can be divided into two - firstly the technological problems, and secondly the threats from assertive satellite competitors.

Cable TV needs to embrace better technology.
1) As the TV signal is delivered to subscribers via cable, then bad weather conditions may affect these cables. Satellite transmission is not affected by adverse weather conditions.
2) Cables cannot deliver the much larger number of channels that satellite transmission can. Cable therefore cannot match satellite when it comes' to variety of channels on offer.
3) Picture and sound quality with cable is inferior to that of satellite - satellite TV signals are 100% digital something that the cable companies cannot easily provide.
4) The nature of satellite TV means its more easier to incorporate new technologies into the system.

Cable companies need to match the satellite companies.
1) As the satellite companies are chasing market share, they are keeping their subscription fees as low as possible. The cable companies' fees have been increasing at a greater rate than those of their satellite competitors.
2) Both the major players in the satellite TV industry offer new subscribers free equipment and installation, such as a satellite dish, set-top equipment etc.
3) The installers of the satellite systems offer a range of free gifts, with the satellite companies offering special deals and prices for new customers.
4) The satellite signal enables the delivery of a larger number of channels. This factor alone is encouraging large numbers of families to dump cable TV.
5) Numerous industry surveys point to satellite TV companies placing greater emphasis on customer service than the cable operators.
6) The ever-increasing number of subscribers to satellite TV is in itself encouraging families to switch over.

Whilst the cable companies have served the American public well in the past, that is no guarantee that their future is secure. Satellite transmission provides many technological advantages that the cable companies cannot provide at present. In order to have a future in this progressive industry, the cable companies need to embrace better technology.

The American public demands constantly improved satellite TV services. To satisfy this demand one of the biggest providers, Dish Network regularly upgrades its already large range of channels - a range that surpasses anything the cable TV companies offer.