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11/01/2017
Moody’s Has Positive Outlook on Cable
Moody’s Investors Service expects cash flow in the cable industry to rise at a 6% clip as broadband increases are expected to outpace cord-cutting by a 2:1 margin.
In a report issued Tuesday (Oct. 31), Moody’s said its positive outlook on the industry is driven by consolidation synergies and broadband demand, even in the face of stiff competition from Netflix and soon, 5G wireless offerings.
While cable video subscribers have been declining – Moody’s estimates the business lost around 1% of its video base this year – broadband growth was 5% and the credit rating agency expects that trend to continue over the next 18 months. In the report, Moody’s projects the industry will replace video subscribers by at least 2 times as many broadband customers “and probably many more, with only moderate video losses.”
Related: Cable Again Takes Lion’s Share of Broadband Adds in Q2
