Zacks Industry Outlook Highlights Rogers Communication, Liberty Global and Cable One

Zacks Equity Research
9 min read

In This Article:

For Immediate Release

Chicago, IL – October 1, 2024 – Today, Zacks Equity Research discusses Rogers Communication RCI, Liberty Global LBTYA and Cable One CABO.

Industry: Cable Television

Link: https://www.zacks.com/commentary/2343422/3-stocks-to-watch-from-a-prospering-cable-television-industry

The Zacks Cable Television industry players are focusing on bundled offerings and on-demand programming to counter challenges from cord-cutting as consumers shift away from traditional pay-TV options, including cable TV and satellite TV, to over-the-top streaming services with innovative content. The industry is evolving by leveraging its broadband infrastructure to meet changing consumer preferences and balancing traditional cable services with new streaming options to maintain relevance in the rapidly changing media landscape.

Cable companies are benefiting from consistent demand for high-speed broadband and WiFi devices, driven by hybrid work and learning environments. Increased media consumption has been a key catalyst for industry leaders like Rogers Communication, Liberty Global and Cable One.

Industry Description

The Zacks Cable Television industry comprises companies offering integrated data, video, and voice services, including pay-TV and Internet-based streaming content. These firms provide equipment like satellite dishes, digital set-top receivers and remote controls.

Cable companies typically build or lease network backbones from telecom companies and purchase licenses to distribute programmers' content over these networks. They license content from programmers and sell advertising spots.

The industry is capital-intensive, requiring significant investment in infrastructure, and is heavily regulated by the Federal Communications Commission. Industry players must balance the need for ongoing investment in technology and infrastructure with evolving consumer preferences and regulatory compliance to maintain competitiveness in the media landscape.

4 Trends Shaping the Future of the Cable Industry

Skinny Bundles, Original Content Driving Growth: Cable television's ability to generate ad revenues outside traditional TV platforms, such as websites and any digitally-consumed platform, provides increased scope for target-based advertising. Nevertheless, consumers' unfavorable disposition, particularly toward advertising, has hit industry participants hard.

Further, the growing consumer preference for digital and subscription services instead of linear pay-TV and rental or outright purchase has compelled industry players to alter their business models. Cable television companies are now offering a variety of alternative packages, including skinny bundles, which are delivered at lower costs than traditional offerings. These companies are also innovating in terms of original content to be competitive against streaming service providers.

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