Today was a very bad day for cable TV. Barclays today downgraded the whole cable TV industry to neutral. In their report, Barclays says their earlier more optimistic projects will likely come up $675 million short.
Barclays had been assuming a relatively static competitive market for cable TV, now with the growth of cord-cutting and cord-never they are changing their tone. According to Barclays that was “likely a misplaced assumption.”
As for the possibilities of new mergers and acquisition activity, Barclays believes that pretty much all the value that can be squeezed out of the cable TV sector already has. Barclays singles out Charter as a specific disappointment, which is subject also to a slowdown in broadband growth, competitive pay-TV market.
This is all bad news for pay-TV owners as most are publicly traded companies. With the world of cord-cutting growing and new live TV streaming services, it is becoming increasingly difficult for pay-TV providers to maintain the same market share they once had.
Need cord cutting tech support? Join our Cord Cutting Tech Support Facebook Group for help.