Why Wall Street Doesn't Mind Cable's 'Dark' Pay TV Future

When Bernstein analyst Peter Supino on Oct. 15 launched coverage of the telecom, cable and satellite industries with a 79-page report, he wrote that "video's outlook is dark." The number of U.S. households that carry the traditional TV bundle has dropped from 101 million in 2014 to just 87 million in 2019, headed for 78 million by 2022.

"The impact of the direct-to-consumer services hasn't been felt yet, but the real sea change is that the cable operators no longer feel compelled to defend the status quo," MoffettNathanson analyst Craig Moffett says. "They're quite comfortable losing low-value video subscribers, and they now know that investors are comfortable seeing video subscriber losses as well."

"Video is still an important profitable component … but we continue to be disciplined and are not chasing unprofitable subs." Comcast Cable CEO David Watson added: "If we can't profitably serve this segment, then we're going to move them to a broadband-only relationship." And not all providers are created equal, hence Supino is bearish on satellite, figuring that shares of DirecTV parent AT&T are headed for a 3 percent fall in the next 12 months while Dish Network stock loses 13 percent, as the silver lining of increased internet access making up for declines in television doesn't apply to the satellite services.

I’m so sick of subscription service fees that we actually went back to cable. It ended up costing the same per month.

So much for anti-trust laws

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

There's an Apple business growing at a 50% clip that's wowing Wall Street analysts'Huge AirPod growth' helped drive Apple's earnings, Bernstein's Toni Soccanogahi said. I heard when 5g comes out the iphone 11 will be no good you will have to get a new5g iphone that is 5 g who ever gets Apple? The reason the AirPod business is so lucrative is that people lose them and have to replace either the AirPods or the case. That’s 3 little piece to drop or lose in a seat. It’s a fantastic annuity for Apple and I’m sure they’ve calculated the percentage that need replacement.
Source: CNBC - 🏆 12. / 72 Read more »

Wall Street edges higher at open after strong Apple, Facebook resultsU.S. stocks opened slightly higher on Thursday after strong quarterly reports fr... And trump pumping
Source: Reuters - 🏆 2. / 97 Read more »