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While cable operators were only talking
about digital TV, DBS companies actually achieved it, taking the
entire cable industry by surprise. Early entrants were Primestar,
DirecTV, and United States Satellite Broadcasting (USSB), all of
which launched in 1994.
In the United States, DBS is viewed
as a commercial success. DBS signed a surprising five million
customers in its first three years of operation. This response is
particularly strong considering the fact that customers initially
paid up to $800 for a home satellite dish and installation. Such a
strong start has cable TV operators concerned. Even more troubling
for U.S. cable operators is that the average DBS subscriber spends
about 50 percent more per month than the average cable subscriber
(about $52 versus $35 per month). This difference is partly due to
sales of premium sports and movie packages.
In fact, much of the success of DBS
is due to imaginative programming packages. In particular,
aggressive marketing of sports packages (including college
basketball and professional football) has created varied content for
which DBS has found an eager market.
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