The Credit Suisse analysts emphasized that they remain optimistic on cable and satellite sector businesses, but see the developing new problem as "cord-avoiders," households that are relying on video alternatives in an arguably new way.
Many new households are not signing up for cable or satellite, the analysts said. While there were 1.8 million households formed, according to U.S. Census estimates cited by the report, only 16.9 percent of them signed up for video entertainment services.
Analyst Stefan Anninger says he now expects the multi-channel video universe to contract by around 200,000 subscribers in 2012 instead of the gain of 250,000 that he had previously forecast. "We do not expect the pay TV universe subscribers 'to fall off a cliff' over the next year or two," he said. Base business okay But there is trouble brewing.
For the 12 months ending Sept. 30, 2011, total pay TV industry subs have remained unchanged at 100.8 million, according to Anninger. "Over the same period, however, occupied households have grown by 1.25 million," he said. "In turn, pay TV penetration has fallen from 84.1 percent in the third quarter of 2010 to 83.2 percent."
Many new households are not signing up for cable or satellite, the analysts said. While there were 1.8 million households formed, according to U.S. Census estimates cited by the report, only 16.9 percent of them signed up for video entertainment services.
Analyst Stefan Anninger says he now expects the multi-channel video universe to contract by around 200,000 subscribers in 2012 instead of the gain of 250,000 that he had previously forecast. "We do not expect the pay TV universe subscribers 'to fall off a cliff' over the next year or two," he said. Base business okay But there is trouble brewing.
For the 12 months ending Sept. 30, 2011, total pay TV industry subs have remained unchanged at 100.8 million, according to Anninger. "Over the same period, however, occupied households have grown by 1.25 million," he said. "In turn, pay TV penetration has fallen from 84.1 percent in the third quarter of 2010 to 83.2 percent."
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