Next 10 Years Look Upbeat For U.S. Cable Industry

Attention cable investors: The 10-year outlook is "bright," at least according to a report by SNL Kagan, an offering of S&P Global Market Intelligence.

The research report noted a "slightly improved" outlook for the video segment and "continued upside" for the broadband services. As such, companies operating in the space will see steady revenue growth through at least 2026.

SNL Kagan estimates residential revenues will jump from $108.38 billion in 2016 to $117.7 billion in 2026, while contributions from commercial services will boost the entire industry's revenue from $130.57 billion in 2016 to $140.99 billion in ten years.

Related Link: Scripps Networks Interactive Shares Attractively Priced

The report also estimates that broadband subscriptions will swell by more than 8 million through 2026 and reach 71 million people. It also projected that basic video subscriptions will drop by an annual compounded growth rate (CAGR) of just 1.5 percent to 45.4 million by 2026, which marks a slower rate compared to its prior projection of 1.7 percent CAGR.

Finally, SNL Kagan expects total revenues generated from residential video services to decline at a CAGR of 0.5 percent over the next 10 years.

“Like many industries, cable isn’t immune to shifting preferences, but continued growth in broadband may propel revenue growth on both the residential and commercial end,” said Tony Lenoir and Ian Olgeirson, the SNL Kagan researchers behind the report. “Despite ongoing declines in video, the next 10 years look pretty good for this sector.”

Some Names In The Space

• Charter Communications, Inc. CHTR.
• DISH Network Corp DISH.
• Walt Disney Co DIS.
• Comcast Corporation CMCSA.
• AT&T Inc. T.
• Scripps Networks Interactive, Inc. SNI.

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