OnScreen Summit: Analyst -- Stronger Housing, Economy Will Drive Cable

Reif Cohen sees subscriber improvement in second half of year

By Mike Farrell, Multichannel News -- Broadcasting & Cable, 12/6/2012 6:19:00 PM

New York - Bank of America Merrill Lynch media analyst Jessica Reif Cohen said a rebound in the housing market could help kickstart the economy and spell much  better days for cable companies in 2013.

At the Multichannel News/B&C OnScreen Summit Thursday in an interview with Multichannel News' editor-in-chief Mark Robichaux, Reif Cohen stopped short of predicting that cable operators will cross into positive video subscriber growth next year, but said that losses that have plagued the industry for years will continue to decline.

"We haven't had the benefit of housing growth in years," Reif Cohen said. "That will be a huge positive for the pay TV industry in general and cable specifically."

The analyst said that overall Bank of America Merrill Lynch is bullish on the overall economy -- the promise of renewed housing growth, continued low interest rates and a strong banking sector should translate into overall gains, especially in the second half of the year.

High programming costs will continue to divide operators and content providers, Reif Cohen said, adding that average retransmission consent fees will continue to rise.

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