Analyst Wonders If Comcast Is On "Brink Of A Video Renaissance"
Cable operators have long complained that the margins for their video business have eroded because of the high cost of sports channels. But Bernstein analyst Craig Moffett asks if the nation's biggest cable operator, Comcast, is "on the brink of a video renaissance." In a research note released this morning, Moffett credits Comcast's VOD service for giving it an advantage over its rivals. "For the first time in 20 years, it is not a satellite operator, but instead a cable company -- Comcast -- that now appears to offer the best overall video experience in the pay TV industry." Moffett predicted that Comcast will lose 283,000 subscribers this year ("less than half of last year," he writes). By '13, Moffett believes Comcast will reach a breakeven point in video subscribers. "That would be quite a turnabout, considering that video is generally perceived as cable's weakest link."