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Moody’s: Broadband Buys Cable Time in OTT Battle - Broadcasting & Cable

Moody’s: Broadband Buys Cable Time in OTT Battle

Report says broadband, limited competition gives cable time to adapt
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Credit ratings agency Moody’s Investors Service says high-yield cable companies remain strongly positioned against the over-the-the top threat at least for the next few years, mainly because of the expected continued strength of their broadband businesses.

In a new report – "High Yield Cable's Broadband Still Effective Defense Against Over-the-Top Siege" – Moody’s said that broadband, coupled with limited competition and customer inertia would give cable operators time to adapt to the rise of new entrants to the sector. “OTT options will take a small number of traditional pay TV subscribers, but the shift in the pay TV sector will be evolutionary, not revolutionary,” said Moody’s VP Karen Berckmann in a statement. “Content providers are treading cautiously so traditional cable operators have the chance to build financial flexibility and prepare in case industry fundamentals change more significantly.”

Broadband subscriber additions are expected to continue to outpace video customer losses for the next few years, with the biggest risk being underinvestment.

For the full story go to Multichannel.com.

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