2012 Forecast Contains Good News for Cable

Mar 2, 2012  •  Post A Comment

A forecast examining the outlook for cable and satellite TV contains some good news for subscription-based programming providers, according to The Hollywood Reporter.

The report, “Cable/Digital Broadcast Satellite Businesses Are Healthy, Even With Tough Housing Environment,” by Barclays Capital analyst James Ratcliffe, predicts a modest improvement in pay TV subscription growth, the story reports.

Ratcliffe says cable, satellite and telcos will add 450,000 pay TV subscribers this year, an improvement from 195,000 in 2011. The growth is being driven by a "modest improvement in housing occupancy, along with the expansion of lower-priced plans targeted at more price-sensitive customers," Ratcliffe says.

Ratcliffe joins other experts who have said there’s reason for optimism among those who have been concerned about cord cutting, THR reports.

According to the story, Ratcliffe’s report states: "Housing weakness explains sluggish pay TV results. Fourth-quarter results again showed that weak occupied home growth, not cord cutting, has kept pay TV subscriber results in check. The growth in homes without pay TV actually slowed year-over-year in 2011, as pay TV net adds declined from 270,000 to 195,000, while occupied home growth slowed from 940,000 to 660,000."

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