Moody’s predicted about 3 percent growth in the cable industry’s...
Moody’s predicted about 3 percent growth in the cable industry’s gross earnings next year, saying it believes the credit outlook for the industry is stable. The rate of growth is the result of expected expansion in cable operators’ commercial services…
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while their traditional services face market saturation and competition. Broadband growth is slowing, Moody’s said in a report titled “High Speed Data, Commercial Segment will Drive Continued Growth in 2013.” “The cable broadband product still surpasses most competition … on speed, but growth is slowing as residential high speed data penetration is catching up to household tablet and PC ownership,” the report said. Meanwhile, the video market is approaching a competitive equilibrium among cable operators, satellite providers and phone companies, the report said. “This represents an end of the rapid growth in market share for [direct broadcast satellite], although telecom companies are likely to achieve some continued growth within their footprints at the expense of cable.” Cable’s voice services have limited growth prospects, it said. “We see minimal growth for highly penetrated players like Cox and Cablevision, whereas Comcast and Cequel can boost growth” from their relatively lower penetration levels, it said.