What is making the U.S. cable-TV market so attractive, asks Bloomberg, before answering its own question.
According to Bloomberg, here’s what is going on:
1) “Cable is leaking subscribers… This decline is mostly because of defecting video subscribers, and it would be much worse but for the growth in broadband Internet connections.”
2) The video subs “who stick around pay more. Video revenue per cable subscriber has continued to rise.”
3) “Data users are more frugal. Average revenue per user for high-speed data isn’t growing as fast.”
4) “One handy way to deal with [these facts] is to negotiate better deals with the networks and programmers for all that content that you then sell to your subscribers. And guess what: you can negotiate much better deals if you’re big. Comcast and Time Warner are the only cable providers with serious scale, and they pay markedly less for programming than the smaller guys [such as Charter].
And, of course, Comcast has the advantage of owning a lot of cable networks.
To see all the charts that accompany Bloomberg’s article, we urge you to click here, which will take you to the original article itself.