Channel: Cable Share of Revenue Climbs

Written by Khali
August 29, 2013

One in five channel partners expects more than 30 percent of their revenue to come from cable services by 2016, according to the third annual Channel Partners survey, "Cablecos & The Channel: State of the Market 2013," published in July.

Khali Henderson Channel revenue from the sale of cable telecom services to businesses is small but growing, according to the third annual Channel Partners survey, “Cablecos & The Channel: State of the Market 2013,” published in July.

Nearly three-quarters of channel partners responding to the survey said cableco revenue was 1-10 percent of their annual revenue in 2012; this compares to only half in the previous two years (see chart 1). Furthermore, while 25 percent of channel partners said they earned no revenue from cable in 2011 or 2010, only 7 percent said the same for 2012. In addition, there are some signs that cable is contributing a growing share of revenue with 13 percent saying it accounts for 11-20 percent in 2012, compared to only 8 percent in 2011.

In 2013, channel partners expect revenue from cable services to account for increasing portion of their revenue (see chart 2). Compared to 2012, fewer (56 percent vs. 73 percent) expect their revenue to remain in the 1-10 percent range, while more (24 percent vs. 13 percent) expect it to be in the 11-20 percent range. The number that expect it to be in the 21-30 percent range more than doubled year over year, from 6 percent to 15 percent.

Similarly, the share of channel partners revenues from cable telecom services is expected to increase over the next five years through 2017. Revenue is expected to shift up until 2016, when one in four partners expects cable to bring in 11-20 percent of revenue; a similar number expect it to bring in 21-30 percent. One in five channel partners expects more than 30 percent of their revenue to come from cable services by 2016. Those numbers are projected to hold steady through 2017.

Keep in mind that these are estimates from partners themselves. Past years predictions have fallen short of expectations. However, they are a good indication that partners are bullish on the prospects for continued success selling cable services.