There are fewer concerns about cord-cutting affecting cable TV-operators' abilities to generate revenues, according to one analyst.
Growing internet subscriptions/revenues as well as lower capital expenditures are two reasons that cable companies will see higher overall cash flow and revenues, says Peter Supino, media analyst of Bernstein Research.
Supino writes that “video is less important to financial results,” and overall stock market valuation for the likes of Comcast, Charter Communications, Altice USA, and others will go higher.
He says that although the market is saturated with a number of companies when it comes to broadband services, pricing is sustainable.
Looking ahead, he anticipates slower-than-expected growth of 5G to shift increased data demands to older fiber networks used by cable operators.
Since the beginning of this year, big cable operators continue to see stock market growth. Year-to-date, Comcast stock is up 34%, while Charter has added 54% and Altice USA is up 79%. Satellite pay TV service Dish network is 38% higher.