logo
  Join        Login             Stock Quote

3 Major Threats Could Send This Huge Industry Off A Cliff

 March 13, 2012 01:49 PM
 


You have to hand it to cable companies. For years, they continually boosted prices and still managed to retain customers. Only recently has their customer base begun to shrink modestly. But thanks to several recent developments, the pace of customer defections looks set to accelerate. This implies that sales and profits may soon peak (if they haven't already), and with some pretty hefty debt loads, certain companies may see their shares plunge.

Rising costs, sinking value
Cable companies such as Time Warner (NYSE: TWC), Conmcast (Nasdaq: CMCSA), Cablevision (NYSE: CVC) and Charter Communications (Nasdaq: CHTR) aren't fully to blame for their current predicament. Key cable network operators such as Disney (NYSE: DIS), which owns ESPN and others, have forced the cable companies to pay ever-higher fees, and those costs needed to be passed on to the consumers. Trouble is, consumers are no longer mesmerized by the option of more than 100 channels, realizing that they watch only a handful of broadcast and cable networks.

This created an opening for the likes of Netflix (NASDAQ: NFLX) and Hulu.com to start winning converts, some of whom have "cut the cord" with cable companies. Yet it is three recent moves that really threaten to make consumers flee in droves.

Threat No.


Next Page >>123
iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article image3 US Updates Show Ongoing Growth

Three economic updates today provide more evidence that moderate growth endures for the US. The numbers du read on...

article imageBuy These Solar Stocks Before They Snapback

Sometimes the market hands you a gift. And it would be foolish not to take it. Thanks to general market read on...

article imageInvestors Are Even More Euphoric And Confident.

As noted on the blog last Thursday, even though the market had been down for three straight weeks, last read on...

article imageThe Butterfly Machine

There’s a phenomenon called the Butterfly Effect. One common quotation is “It has been said that something read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.