The research firm said that the ten-year outlook is “bright” for the US cable market, despite an anticipated decline in video subscriptions.
SNL Kagan predicted that residential cable industry revenues will climb by US$9.32 billion over the period, from US$108.38 billion in 2016 to US$117.7 billion in 2026.
Basic video subscriptions are projected to drop by a compound annual growth rate (CAGR) of 1.5% to 45.4 million by 2026, according to the report.
Combining basic cable and advanced services, SNL Kagan predicts total revenues from residential video services will fall at a CAGR of 0.5% over the next ten years.
However, broadband subscriptions are forecast to grow by more than 8 million over the next 10 years, reaching 71 million.
“Like many industries, cable isn’t immune to shifting preferences, but continued growth in broadband may propel revenue growth on both the residential and commercial end,” said SNL Kagan researchers, Tony Lenoir and Ian Olgeirson in a statement.
“Despite ongoing declines in video, the next 10 years look pretty good for this sector.”