In the 1980s, cable television executives jeered at satellite television services when they began sprouting their mammoth 8-foot dishes across the lawns of suburbia. By the mid-1990s, satellite dishes had shrunk to the size of a pizza. However, the cable industry still dismissed satellite TV as an irrelevant irritant. Over a decade, and the satellite industry is overwhelming cable TV. In both urban and rural areas, satellite TV is disqualifying the cable industry's reputation as a growth sector on Wall Street.

According to a report released by Kagan Research, the cable service is on the decline. Since its inception, in the 1950s, the number of households subscribing to cable is plummeting. Over the past two years, the industry has lost more than 900,000 American consumers.

In recent news, cable industry giants, Cox Communications, Comcast Corporation, Inc. and Time Warner Inc.'s cable division month, reported a combined 171,000 loss in subscribers. Moreover, Comcast, the United States largest cable operator lowered its projected gain of 100,000 subscribers in 2004 to simply breaking even. Comcast has more than 21 million subscribers. The loss of subscribers has sent cable stocks plunging and inciting drastic changes in the cable industry.

At the same tokens the satellite industry has grown from virtually zero percent to about 25 percent.

In spite of cable firms ability to sell packages of phone service and television and high-speed Internet access, satellite businesses continue grow. Dish Network and DirecTV are maintaining projection to add more than 2 million subscribers. Satellite's success is the result of its generous offerings. For the budget conscious consumer, the appeal of a package of 60 channels for $29.99 a month with free installation outweighs a cable package. Typically, cable subscribers get the same number of channels, in fuzzier analog format and costs more than satellite TV.

The allure of 60 channels delivered over crystal-clear digital signals is attractive for subscribers especially with the price differential. Additionally, satellite also has overcome the obstacle of a lack of local network channels. Since 1999, satellite companies like DirecTV have steadily added local channels to their programming. (DirecTV offers local channels in 106 markets).

As the competition intensifies, cable faces time pressure. Satellite services are joining forces with regional Bell phone companies. The partnership will package their products to compete with the bundles of phone, TV and high-speed Internet services that cable companies offer.

Rate hikes minced with poor service and inadequate customer support are the primary reasons for cable company’s subscription loss. With satellite TV offering immeasurable value, a wide range of channel selections and little-to-no start-up cost, cable service has loss it’s draw. Cost and the picture quality coupled with the additional features is what’s attracting consumers to make the satellite switch.