Image Source: Mike Mozart
Structure of the Media (CATV) Industry
The media (cable TV) industry generates revenue primarily from monthly subscription fees and by selling advertising time. Participants provide video, Internet and voice services, operate cable networks, and may also manage other entertainment businesses. Though barriers to entry are high, firms face competition from a broad range of companies and ongoing threats from higher programming/content costs. The strong, recurring cash flow stream that large subscriber bases provide is quite attractive, but more recently a secular trend towards cord cutting and increased competition from Internet-based entertainment distribution services has impacted subscriber numbers. Still, we’re neutral on the group.
We’ve modified our coverage of stocks in the Media (CATV) Industry.