First Dutch cable operators end analogue

By
Aravind Venugopal

October 08, 2010

Dutch cable operators Caiway and Rekam are to become the first in the Netherlands to end analogue cable service when they switch to digital-only on the 10th of October 2010. Caiway, which is the fourth largest cable operator in the country and is active in the western Netherlands, supplies smaller neighbour Rekam with its digital cable signals. Over 95 per cent of Caiway's 150,000 strong television subscriber base have already been converted to digital and the operator's says surveys show only two per cent of its TV households are yet to 'prepare themselves' for analogue switch off. In the run up to the switch and to reduce potential churn, Caiway is offering digital set top boxes for as little as €59. As an alternative to basic digital cable, the company is also offering a DVB-T over cable tuners at €19.90, giving access to a 21 channel-service, including channels from majors like Discovery (Discovery Channel, Animal Planet) Disney (Disney XD) Viacom (MTV, Nickelodeon, Comedy Central, TMF) and Fox (National Geographic Channel). Following switch off, the operator has stated that it will expand its HD channel line up, adding several new channels. Caiway is also contemplating the addition of 3D channels, and stated that some of the HD boxes sold through its shops are 3D capable.

The switch off of analogue signals by Caiway and Rekam is a milestone for the Dutch cable industry. Apart from being the first operators to completely cease analogue, Screen Digest data reveals that digital cable households are set to pass analogue in the Netherlands during Q3 2010. However, analogue services which provide multiroom access without set-top boxes are seen as a key selling point for cable in the Netherlands and will continue to be offered by cable majors Ziggo and UPC-which together account for 93 per cent of total cable TV homes. In the absence of any concrete moves towards analogue switch off from either of these two players, we believe that analogue cable will continue to be a mainstay in many households. As such, our forecasts for analogue cable in Netherlands remains unchanged.

In the days leading up to switch off, churn has increased at Caiway. According to the company, several hundred homes have disconnected their cable services, presumably in favour of either IPTV services from incumbent telco KPN, Digitenne DTT or pay satellite from Canal Digitaal. Competition from other cable operators is, however, minimal, if not non-existent, in Caiway's areas of operation. In line with other Western European countries, there is little cable over build and overlap between competing cable services. However, Caiway's offer of cheap digital hardware appears to be a success so far, with the DVB-T tuners already sold out and notices on the Caiway Website stating that stock will be unavailable until mid October. In the days leading up to the switch-off, both its store and help line opening hours have been extended to ensure that customers yet to upgrade do not face a black out on Sunday morning.

Tags:

Countries: Netherlands
Companies: Caiway Rekam Ziggo UPC KPN Canal Digitaal