Tuesday, March 3, 2009

Premium Video Not Conforming to Historical Patterns?

In past recessions cable operators and other multi-channel video suppliers have seen a dip in growth rates for premium services such as HBO, Showtime or Starz. That might not be happening this time. Or at least the impact has not yet been seen.

At the same time, Netflix growth seems to have accelerated as well.

Perhaps consumers will behave differently this recession than they have in the past, and in ways that are good for video providers. Better promotion from more providers or a change in the value of in-home entertainment might be explanations.

So far, this is a bit of a surprise to the upside.

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