Channel: Cable Share of Revenue to Accelerate

Khali Henderson**Editor’s Note: You can download a copy of the report, “Cablecos & The Channel: State of the Market 2014” from the Channel Partner’s Resource Center.

Channel revenue from the sale of cable telecom services to businesses is small but growing, according to the fourth annual Channel Partners survey, “Cablecos & The Channel: State of the Market 2014,” published in July.

In 2013, more than half (56 percent) said cableco revenue was 1-10 percent of their annual revenue. This is less than last year when 73 percent said the same. However, all percentage ranges were higher this year than last, showing the increasing portion of revenue attributable to cable sales. While those in the 11-30 percent bracket stayed pretty much the same year over year, the 31 percent plus bracket grew five times, from 2 percent to 11 percent.

In 2014, channel partners expect revenue from cable services to account for increasingly greater portions of their revenue. Fewer (39 percent this year versus 56 percent last year) expect their revenue to remain in the 1-10 percent range, while more (23 percent this year versus 13 percent last year) expect it to be in the 11-20 percent range. The percentage that expect it to be in the 21-30 percent range is nearly double year over year, increasing from 8 percent to 13 percent.

Similarly, the share of channel partners’ revenues from cable telecom services is expected to increase over the next five years through 2018. Revenue is expected to shift up until 2016, when one in four partners expects cable to bring in more than 30 percent of revenue. By 2018, more than a third (34 percent) expect cable to be more than 30 percent of their revenue.

Keep in mind that these are estimates from partners themselves. Past year’s 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.

Khali Henderson is editor-in-chief of Channel Partners.
Twitter: @khalihenderson

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