The largest Cable TV in the nation Comcast Corporation (NASDAQ:CMCSA) is likely to lose more subscribers in 2018 too. The Wall Street Analyst has reduced the price target for the stock to 47 from 49 on estimated subscriber loss of 400,000 in 2018. Its video revenues are likely to drop by 1.4%. Despite the cable TV enhanced the supply of X1 set-top boxes, the video subscriber loss last year was estimated at 150,000.
Verizon Communications Inc. (NYSE:VZ) and AT&T Inc. (NYSE:T) are also likely to lose subscriber base considerably in the current year.
The Demand for on-demand and live video services set to rise in 2018
According to the predictions of UBS Analyst, the subscriber base for live as well as on-demand video streaming services will increase from 5.5 million in 2017 to 9.2 million (up 67%) in 2018. The companies offering on-demand and live video services include Alphabet Inc Class A (NASDAQ:GOOGL), Hulu, Amazon.com, Inc. (NASDAQ:AMZN), AT&T’s DirecTV, Sling branded service of Dish Networks‘ (DISH).
The subscriber base of Internet Video is estimated to reach 15 million in 2020. It is around 16% of the share of pay TV market. The cable TV firms are gearing to offset the losses by offering broad band services at higher rates.
The shares of Mr. Brian Roberts led Comcast, the cable giant in the US, dropped by 8% amid the counter offer of $41bn EV for Sky, the largest Pay TV operator in Europe.
The customer base of Sky is around 22 million. Its annual profits are estimated at £2 billion. Sky has also introduced on-demand services including Now TV successfully. Its competitors include Apple Inc. (NASDAQ:AAPL), Amazon and Netflix, Inc. (NASDAQ:NFL).
The Sky is also putting in considerable efforts to convince the households in the US to mobile, telephony and broadband services along with TV services. It is one of the best candidates for acquisition. Comcast is likely to reap huge dividends by acquiring Sky in the near future. However, the price set for the takeover is very high.