Apparently the cord-cutting, cable-hating, Internet-loving crowd is winning over the minds of Wall Streeters. At least that would be the initial take on reports that Moody's Investors has downgraded its future outlook on the cable industry from "positive" to "stable" and that Credit Suisse analysts are chewing their nails to the quick worrying about how cable's under increasing attack from over-the-top video providers.
Russell Solomon, a senior vice president at Moody's told Bloomberg that the analyst firm believes that "pricing for video service offerings, in particular, has reached an inflection point from which more customers will more actively look to reduce their overall cable bills" and thus adversely impact cable's ability to retain paying customers.
The investment paranoia seems almost in conflict with another report (agreeably one from overseas) that "the capacity of Internet connections will be increasingly important" as a differentiator for pay TV service providers. "With the growth in OTT providers and on-demand viewing, bandwidth will be increasingly important." And, no matter how you shake it, right now cable has the most bandwidth.
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