{"id":114089,"date":"2017-10-05T10:30:27","date_gmt":"2017-10-05T14:30:27","guid":{"rendered":"http:\/\/countingpips.com\/?p=114089"},"modified":"2017-10-05T06:58:52","modified_gmt":"2017-10-05T10:58:52","slug":"comcasts-stay-of-execution","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/10\/comcasts-stay-of-execution\/","title":{"rendered":"Comcast\u2019s Stay of Execution"},"content":{"rendered":"
October 5, 2017<\/div>
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By WallStreetDaily.com<\/u><\/a> \"Comcast's<\/p>\n

\"LouisA couple weeks ago, I promised to report back with news of the FCC\u2019s big vote.<\/p>\n

You\u2019ll recall that the FCC wants to replace your \u201ccable box\u201d with an app on your smartphone. This would effectively kill the monopoly enjoyed by Comcast and Time Warner.<\/p>\n

Unfortunately, I can\u2019t pronounce the cable companies dead today.<\/p>\n

The FCC delayed its vote.<\/p>\n

\n

The vote, originally scheduled to take place on Thursday [Sept. 28] as part of the commission\u2019s monthly meeting, has been postponed indefinitely as the government agency works to iron out details amid intense pushback from cable providers, media companies and politicians. \u2014 CNN<\/p>\n<\/blockquote>\n

The agency is optimistic that a vote will be cast \u201cwithin the next couple weeks,\u201d yet there is \u201cno deadline\u201d on the books.<\/p>

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<\/div>\n

But that won\u2019t stop us!<\/p>\n

We just deconstructed and evaluated the entire cable TV\/broadcasting industry.<\/p>\n

Below you\u2019ll find the biggest winners (and losers) over the next 12 months.<\/p>\n

So place your bets, stat!<\/p>\n

Comcast\u2019s Last Laugh<\/h2>\n

\"JonathanAs streaming content takes over, who will reign victorious in the entire cable TV\/broadcasting industry?<\/p>\n

You might be surprised, but it\u2019s the cable companies themselves.<\/p>\n

Let me explain\u2026<\/p>\n

Netflix and Amazon wow their audiences by streaming high-end original TV series featuring big-time talent.<\/p>\n

Sure, they\u2019ve stolen millions of paid cable TV subscribers over the last decade.<\/p>\n

But under the cover of darkness, cable companies have been working hard in the background with one goal in mind\u2026<\/p>\n

The end of net neutrality.<\/p>\n

If you\u2019re unfamiliar, net neutrality is the basic principle that internet service providers must treat all Internet data as the same \u2014 regardless of its source or destination.<\/p>\n

And as you know, many cable companies also double as internet service providers.<\/p>\n

Without the neutrality rule, cable companies will have the freedom to charge you more for websites that require more ISP bandwidth like Amazon and Netflix.<\/p>\n

<\/a><\/p>\n

Even better, they\u2019ll be able to throw up their own streaming sites \u2014 and sell them to you at a discount to your favorite cord-cutting website.<\/p>\n

And that\u2019s not all!<\/p>\n

Take a look at the image to the right.<\/p>\n

It shows what internet subscriptions could look like in a world without net neutrality, according to Reddit user \u201cquink.\u201d<\/p>\n

Crazy, right?<\/p>\n

You could end up paying a lot more just to visit the sites you love and frequent often.<\/p>\n

Comcast, Verizon and their cable kin are playing the long game.<\/p>\n

And they\u2019ve got the right man in the right place\u2026<\/p>\n

Ajit Pai, a former lawyer for Verizon, whom has served as FCC commissioner since 2012, just bagged a second five-year term.<\/p>\n

So he\u2019ll be holding the regulatory reins for his old cable pals for a while.<\/p>\n

Bottom line: Cable TV will likely die a slow death at the hands of streaming content. But thanks to their booming internet business and friendly legislators, cable companies win the broadcast wars no matter what.<\/p>\n

King of the Hill (Again)<\/h2>\n

\"MartinTraditional cable companies are finding that consumers are \u201ccutting the cord\u201d faster than ever before.<\/p>\n

Usage of their pricey services is down 2.5% in the first half of 2017.<\/p>\n

Now, some of that business will migrate to \u201cskinny cable\u201d services that offer a more limited range of channels at a lower cost.<\/p>\n

Others are turning to streaming services such as Netflix. And as Jonathan mentioned above, Netflix is developing desirable original content to keep customers engaged.<\/p>\n

But of all the streaming services, the most likely long-term winner is Amazon.<\/p>\n

Amazon already has 70 million Prime subscribers worldwide, who pay an annual subscription in return for free package delivery. That means the company also has intensive information on those subscribers\u2019 buying and entertainment habits.<\/p>\n

That is absolutely crucial\u2026<\/p>\n

With Amazon Prime Video, customers receive streaming services with a modest additional monthly fee. But Amazon can also tailor its offerings to subscribers\u2019 interests and provide them with content that reflects their viewing habits.<\/p>\n

Add to this Amazon\u2019s deep pockets \u2014 and its ability to commission top-quality content such as The<\/em> Grand Tour<\/em> and The Man in the High Castle<\/em> \u2014 and you have an exceptional ability to reach viewers with higher incomes, who often display more modest TV usage.<\/p>\n

Needless to say, if Amazon can get a substantial share of the higher-income viewers, and use its knowledge of those viewers to tailor advertising offers, its audience will prove exceptionally attractive to advertisers.<\/p>\n

Takeover Potential Greater Than Ever\u2026<\/h2>\n

\"LouisJonathan has unearthed the key point here\u2026<\/p>\n

That is, cable companies aren\u2019t about to go to their deathbeds without a hard-fought battle. And the major battle line has been drawn with net neutrality.<\/p>\n

But if they lose that fight, which I suspect they will, it\u2019s not an instant death sentence.<\/p>\n

Increasingly, cable companies and pay-TV operators are partnering with <\/em>Netflix. Charter is the most recent one to do so, bringing the total to more than 12 pay-TV partnerships in the U.S. alone.<\/p>\n

Doing so is a way to ward off death by embracing streaming video. It makes sense right now, as many consumers have shown a willingness to double up (i.e., pay for streaming services and <\/em>cable).<\/p>\n

At the end of the day, as investors, our focus should be singular: Go where the growth is! That\u2019s clearly streaming services.<\/p>\n

Consider:<\/p>\n

In the first quarter of this year, Netflix subscribers officially eclipsed the number of cable TV subscribers in the U.S. So growth is booming, while cable companies are slowly bleeding out.<\/p>\n

If we expand our perspective to include the world, 40% of global online video viewers still don\u2019t subscribe to any streaming services. That\u2019s a massive untapped growth opportunity.<\/p>\n

So what streaming services represent the best investments?<\/p>\n

I\u2019m keen on Martin\u2019s rationale and vote of confidence for Amazon. After all, nobody\u2019s ever bet against Jeff Bezos and won.<\/p>\n

However, it\u2019s important to realize that Amazon isn\u2019t a pure-play investment or even a clear market leader. Yet.<\/p>\n

The latest data indicate that Netflix is eating everyone\u2019s lunch, accounting for nearly 50% of all the time spent streaming in the U.S.<\/p>\n

\"chart:<\/p>\n

We\u2019ll get a fresh update on Netflix\u2019s chart-topping growth and market share when the company reports results on October 16.<\/p>\n

Last quarter, Netflix torched expectations, which sent shares soaring to new all-time highs. Another repeat performance could be in store. So don\u2019t miss out!<\/p>\n

And don\u2019t be surprised if Netflix is ultimately acquired. Apple and Amazon make the most strategic sense and could finance such a historic deal.<\/p>\n

As we\u2019ve talked about here repeatedly over the last week, any such news would certainly \u201cbreak\u201d the chart, handing savvy investors a chance to pocket $100,048 <\/u>or more<\/a><\/strong>.<\/p>\n

There are over 300 such opportunities each year in the market. To make sure you don\u2019t miss the next one, check out our brand new research here<\/a><\/strong>.<\/p>\n

Ahead of the tape,<\/p>\n

Louis Basenese
\nChief Investment Strategist, Wall Street Daily<\/em><\/p>\n

The post Comcast\u2019s Stay of Execution<\/a> appeared first on Wall Street Daily<\/a>.<\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By WallStreetDaily.com A couple weeks ago, I promised to report back with news of the FCC\u2019s big vote. You\u2019ll recall that the FCC wants to replace your \u201ccable box\u201d with an app on your smartphone. This would effectively kill the monopoly enjoyed by Comcast and Time Warner. Unfortunately, I can\u2019t pronounce the cable companies dead […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-114089","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/114089","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=114089"}],"version-history":[{"count":3,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/114089\/revisions"}],"predecessor-version":[{"id":114105,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/114089\/revisions\/114105"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=114089"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=114089"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=114089"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}