Despite some recent controversies surrounding the cable industry and the lingering economic slowdown, U.S. cable operators have continued to grow both in terms of subscribers and revenue.

 

While broadcasting fee feuds and some network losses have affected many popular cable providers, those companies still have managed to come up on top of the competition by expanding offerings, experts say. Specifically, by upgrading traditional video services and increasing the speed and accuracy of data and voice services, the cable industry revenue has grown from a decent $1 billion in 2003 to $86 billion in 2008.

 

But every silver lining has a cloud. And for the cable industry, it’s the rapid – almost excessive – development of these services. Keeping that in mind, high tier cable companies are at risk of flat lining their customer base.

 

While this serves as a hurdle for the big wigs in the industry, it also offers some opportunities and robust growth rates for tier 2 and tier 3 cable operators.

 

To take advantage, these operators must find a way to combine traditional voice and data services with a cable-modem-based broadband application, including VoIP and data, storage and security, making a do-all, end-all product that is irresistible to the small to medium sized market.

 

The argument is summarized nicely in a new white paper from Maryland-based research firm Pike & Fisher. “The Commercial Services Opportunity for Tier 2 and 3 Cable Operators' outlines and analyzes everything from market size and forecast to how the revenue generate by these lower tier companies will be the driving force behind the industry in a few years time.

 

In addition, the white paper touches on the evolution of the small to medium size business market and how tier 2 and tier 3 cable operators can pursue – and eventually dominate – this demographic.