In this report, Stratecast Partners updates its assessment of subscriber competition between U.S. cable companies and the Direct Broadcast Satellite (DBS) service providers, and projects potential effects of the entry of the telephone companies into the video entertainment services market. First, recent data from the FCC on the Multi-channel Video Program Distribution (MVPD) market are reviewed. Second, projections are developed for telephone company entry into the MVPD market with an emphasis on the potential effects on the subscriber bases of the cable and DBS service providers. Third, recent trends and issues in subscriber growth and pricing are discussed for the major cable companies and DBS service providers.