Monday, May 27, 2019

ANALYST: CABLE-TV “HEADING FOR THE CLIFF”

April 30, 2014 by · 1 Comment 

A leading Wall Street media analyst has warned that the cable-TV industry appears to be “heading for the cliff.” Speaking to a meeting of the National Cable & Telecommunications Association, Craig Moffett, senior analyst and partner of the research firm MoffettNathanson, said that rising subscription costs for cable-TV service, brought about by higher content costs, will inevitably lead to cord cutting. “Cord-cutting is real. It’s not much of a debate any longer,” Moffett said, according to the Los Angeles Times. Moffett maintained that the higher subscription prices rise, the greater the likelihood of alternative services appearing seeking to take advantage of consumer outrage. “It’s an industry that is heading for the cliff, and the faster we get to it, the more we step on the accelerator,” Moffett said. On the other hand, the Times observed that most other analysts attending the meeting gave a mostly upbeat assessment of the state of the cable industry. Longtime Merrill Lynch analyst Jessica Reif Cohen expressed the belief that Comcast’s takeover of Time Warner Cable will allow it to sell advertising to national advertisers that want to reach all 50 major U.S. markets. “It’s hard to look at this and not be positive,” she said.