Verizon’s FiOS Broadband and TV service is widely believed to be kryptonite for Cable Companies. Add satellite companies to the list, according to a study conducted by OneTrak, a market research firm. They looked at 34 Massachusetts towns and came up with interesting conclusions. In the first 90 days of the FiOS availablity, this is how the losses stack up:
1. Comcast lost 5,216 subscribers across a base of 204,160, a drop of 2.6%.
2. RCN lost 1,813 subscribers, or 7% off its base of 25,895 subscribers.
3. 4,594 FiOS TV subscribers came from DirecTV/DISH, or about 40% of their total subscriber base.
4. Verizon’s gain was 11,982 subscribers.
OneTrak believes that “Verizon will likely continue to see double-digit penetration gains in markets where it launches FiOS TV service.” No wonder Verizon is so bullish on FiOS and is betting the farm on the fiber.
Our good friend Cynthia Brumfield explains the satellite-to-FiOS swtich
Verizon is trying to convert its video subscribers that come through its DBS partnerships over to FiOS because that’s a very easy switch. Moreover, it has the added benefit of allowing Verizon to keep 100% of the video service revenues instead of sharing those revenues with DirecTV. So, a good chunk of Verizon’s FiOS TV customers ARE coming from DirecTV because they were part of the DirecTV customer base Verizon had anyway.