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The cable industry faces some big issues: rising content costs, rising competition challenging ratings, and the looming threat of blackouts as content and distribution companies negotiate new deals. This week we’ll see how the industry is faring.
Cable content companies will report how they’re managing rising costs and growing competition, which is putting pressure on ratings.
Cable and satellite TV operators will reveal how they’re handling their own rising costs, passed along from the content creators, plus the threat of “cord-shaving” as customers increasingly watch video online.
We’ll see how TV Everywhere services like Comcast’s XFinity and TimeWarner's HBO Go are working to keep customers watching and paying. One threat hanging over both content and distribution companies: growing instability about contract negotiations and blackouts in the wake of DirecTV and Viacom’s unprecedentedly-long battle .
Discovery Communications kicked off cable industry’s earnings parade with higher revenue and profits, driven by continued strength in advertising. U.S. ad revenue grew 7 percent on increased pricing and better ratings, while international revenue grew 10 percent, driven by 11 percent higher ad revenue.
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