Cablevision’s potential for growth is “permanently and irreparably...
Cablevision’s potential for growth is “permanently and irreparably impaired” by the success of FiOS in its market, said Moffett Research in an email to investors Wednesday. Cablevision’s value is “grossly inflated” and until that changes, it’s unlikely the cable provider…
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could be sold, said analyst Craig Moffett. His conclusions are based on what he said is new data obtained from the U.S. Copyright Office, which shows that FiOS will sustain subscriber growth and have a greater penetration rate than Verizon previously predicted. “Higher penetration for FiOS means bigger losses for its cable competitors,” said Moffett. Because of those higher projections, Moffett compared each cable operator’s overlap with FiOS, and found that Cablevision’s overlap is four times higher than the national average -- “the most overlap with FiOS among publicly traded cable operators.” Charter and Time Warner Cable have the lowest overlap, Moffett said. In markets where cable companies have to compete with FiOS, competition will be “perennially more intense,” and negotiating leverage will be “perennially lessened,” said Moffett.