High-Speed Data Tiers Could Save MSO Bottom Lines

A special report from Fitch Ratings examines the pay-TV industry and “the changing operating environment for video services, given the growth in Internet-based video streaming, the broad availability of high-bandwidth interconnection at acceptable price points and the proliferation of portable video devices,” it says. Cableco revenue and EBITDA growth more and more rely on high-speed data products, while legacy video services are being hurt by falling revenue and margins. “Ultimately a growing consumption of data will lead to measured data service for cable connections,” the report says in part. “This scenario could drive cable operators to focus solely on growing data usage on their connections to customers through owned and third-party applications even at the expense of their own retail video services.”