Craig Moffett, principal and senior analyst at MoffetNathanson, said in a research note published Wednesday that subscriber losses are not evenly distributed. Satellite providers like Dish Network Corp. (NASDAQ: DISH) and DirecTV, now part of AT&T Inc. (NYSE: T), took the biggest hit and telcos like Verizon Communications Inc. (NYSE: VZ) and AT&T were hit hard too.
Cable providers, however, did much better Moffett is reported to have said:
Cable isn’t just holding its own, it is dramatically improving video even as the sector has trended down. … Still, Cable’s advantages are becoming clearer even as sector contraction accelerates.
Pay TV lost a net 625,000 subscribers in the second quarter, the largest-ever loss in the sector. However, FierceCable cites SNL Kagan as reporting a gain of 608,000 high-speed data customers for the cable companies in the second-quarter, the biggest second-quarter increase since 2008. Said Moffett:
Although we acknowledge that there could certainly be additional downside to subscriber numbers, through increased cord cutting and adoption of OTT [over-the-top] substitutes, we think that the risks are relatively low for now, particularly to cable, given its ability to leverage its competitive broadband product …”
Wells Fargo analyst Marci Ryvicker also noted the investor shift away from content companies and toward distribution companies. She also said:
What seems to have really shaken the market is the fact that we are finally seeing the fraying of the television ecosystem in affiliate fees — which is just tough, as subscription revenue is supposed to be the most stable and the highest margin of any media-type revenue stream.
Both MoffettNathanson and Wells Fargo like Charter Communications Inc. (NASDAQ: CHTR), Comcast Corp. (NYSE: CMCSA) and Time Warner Cable Inc. (NYSE: TWC). Wells Fargo also likes Dish Network but, as FierceCable noted, has “moved to the sidelines” CBS, Disney and Fox.
ALSO READ: America’s Most Segregated Cities
Is Your Money Earning the Best Possible Rate? (Sponsor)
Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.
However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.
There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
