- Image via CrunchBase
Cable industry stocks, like all tech stocks, have seen their ups and downs when it comes to performance. The industry has been through periods of high infrastructure spending, acquisitions and divestitures, increased programming costs, higher retransmission costs, and competitive pressures, each playing its own role in keeping values lower.
How do industry revenue streams effect stock prices today with increasing changes within the marketplace becoming more common, and how will these market shifts impact those revenues and subsequently stock prices? If revenue trending is any indicator of stock performance, then look at division breakdowns as a contribution to stock prices. Where will revenue shifts take place and how these help will or hurt company performance going forward.
From analyzing trends in revenue generation, seeing the move from linear programming dominance can clearly be seen as a migration to High Speed Broadband, and Digital Phone. Digital Cable continues to be a strong performer as companies reclaim bandwidth to offer High Definition products. However Cable continues to shed subscribers on a quarterly basis as evidenced by Time Warner Cable’s predicted 30,000 customer lose for the 4th quarter 2009. Comcast, on the other hand, is expected to lose 150,000 customers during the period.
These are not huge numbers in the scheme of things referring to current Cable Company balance sheets, but do signify that portions of market segments are susceptible to continued churn for various reasons, whether those might be shifting demographics, economic pressures, disillusionment in price, etc... Without good trending information and significant data mining, corrective actions may continue to elusive.
The Triple Play bundle is by far the most dependable asset the industry has at its deposal to both retain and gain new customers. Consumers no longer want just Digital Cable without Broadband, and why not throw in Digital Phone to entice even more. After all the phone companies have stated they want out of the landline business. So, create a great price package that wins loyalty and reduces churn.
And while we are at the one-stop-shop counter; do not overlook the Quad Play. Both Verizon and AT&T have their sights set on offering Mobile Phone to complete a Quad Play bundle as well, throwing a true Superfecta into the mix.
Related articles by Zemanta
- Time Warner Cable Posts Profit but Outlook Low (abcnews.go.com)
- Unlike Barron's, We're Bearish on Time Warner Cable (seekingalpha.com)
- Why Cable-Telco's Should Not Ignore FTTH! (lengracecabletvstrategist.blogspot.com)
- Time Warner Cable posts 4Q profit, revenue rises (seattletimes.nwsource.com)
- Todd Foje: Can High-Speed Broadband Finally Bridge the Gap Between Rural and Urban Communities?
- Broadband Roundup: Digital Inclusion Often Falls Short, Rumble Over Roomba Spectrum, Deal Over Education SuperHighway
- Gordon Smith: Can a 5G Fund Connect Rural America at 21st Century Speeds?
- Smart Cities Connect to Hold 2020 Global Event Honoring 50 Smart Projects
- Broadband Roundup: More on the Rural Digital Opportunity Fund, 5G National Advocacy, and Policy Hackers
Signup for Broadband Breakfast
Open Access4 weeks ago
UTOPIA Fiber: A Model Open-Access Network
China2 months ago
Prakash Sangam: China’s Huawei Clones Are Greater Threat to National Security than Huawei
Broadband's Impact3 months ago
FCC Chairman Ajit Pai Praises Agency’s Work in Promoting High-Speed Internet at ‘Broadband Heros’ Event
Broadband Mapping & Data3 months ago
Broadband Data From Providers Needs to be Checked With Data From Users, Say Panelists at Mapping Event
Open Access3 months ago
UTOPIA Fiber Announces Partnerships with Morgan, Utah, Idaho Falls, and Other Cities
Education3 months ago
State Educational Technology Officials Say Better Broadband Necessary for Pedagogy and Equity
FCC1 month ago
Telephony Industry Rises to the Challenge of Robocalls, With Legislation, Regulation and Enforcement Close Behind
FCC2 months ago
As Next Year’s C-Band Auction Looms, FCC Officials Reflect on Innovation in Spectrum Auctions