The recently concluded fourth quarter of 2013 has turned out
to be mixed for the two largest cable TV operators in the
), the largest cable TV operator, has surprised the market with
the claim of modest growth in its video subscriber base in the
fourth quarter of last year. Notably, the segment has seen growth
after six years. In the year-ago quarter, Comcast lost 7,000
On the other hand,
Time Warner Cable Inc.
), the second largest cable TV operator, lost 215,000 video
subscribers in the fourth quarter of 2013. In the year-ago
quarter, the company lost 129,000 video subscribers. For
full-year 2013, Time Warner cable lost a massive 825,000 video
customers compared with a loss of 530,000 customers in 2012.
Clearly, video operation has become a major concern for the
Meanwhile, the cable TV industry in the U.S., is on the verge
of consolidation. 2014 may witness several game changing
decisions and activities in this industry.
Charter Communications Inc.
), the fourth largest cable TV operator, is aggressively pursuing
its bid to acquire Time Warner Cable. Industry sources revealed
that Comcast and Cox Communications are also in the fray for the
In the U.S., the cable MSOs (multi service operators) are
gradually losing hold in the pay-TV market globally. Internal
dynamics of the pay-TV market is slowly shifting toward
fiber-based video offerings of large telecom and satellite TV
In addition, low-cost online video streaming service providers
) have become major competitive threats. Video offering is the
core business area of cable TV operators, which is slipping out
of their hands.
Currently, Netflix sports a Zacks Rank #1 (Strong Buy), while
both Comcast and Time Warner cable have a Zacks Rank #2 (Buy) and
Charter Communications has a Zacks Rank #3 (Hold).
CHARTER COMM-A (CHTR): Free Stock Analysis
COMCAST CORP A (CMCSA): Free Stock Analysis
NETFLIX INC (NFLX): Free Stock Analysis
TIME WARNER CAB (TWC): Free Stock Analysis
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