Cord Cutting and Netflix May Actually be Keeping Cable Alive

In a rather strange twist, Moody’s Investor’s Service issued a report today indicating that that it expects cable broadband gains to offset losses from their linear TV services.

Cord Cutting Puts Premium on Broadband

The service expects cash flow in the cable industry to increase by 6% with broadband increases expected to outpace losses to cord-cutting by a 2:1 margin

The opinion indicates that the key drivers are consolidation (for example, mergers like Charter and Time Warner) and increased broadband demand (bolstered by cord cutting), despite increasingly stiff competition from Netflix and the imminent arrival of 5G wireless offerings.

“Ironically, there is a solid argument to be made that these services, which require more and more broadband, have been a cable (not video) catalyst rather than a killer,” Moody’s wrote, adding that for every Netflix subscriber gained, cable gains a high-speed data customer.

Source: MultiChannel