Cable operators remain well-positioned to take advantage of the demand for advanced services. According to research published by SNL Kagan in its 28th annual "Broadband Cable Financial Databook," U.S. cable operators are expected to add 48 million subscribers to advanced services over the next decade. Although the growth in RGUs and falling capital expenditures point to increased free cash flow, growth is expected to be moderate because of intensifying competition from telco video providers and DBS. As of the end of the second quarter 2008, there were 64.6 million basic video subs served by cable MSOs, 31.0 million DBS subs and 2.1 million telco video subs. SNL Kagan’s five-year outlook estimates 64.3 million, 33.4 million and 11.3 million in each category respectively.

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CTV Popularity Grows

With the digital wave continuing to rise, the vast majority of U.S. households are utilizing CTV devices. Leichtman Research Group found that 88% of U.S. TV households have at least one internet-connected

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