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As the markets continued to plunge yesterday, Morgan Stanley analysts provided a spirited defense of both cable and satellite industry prospects. Said cable guru Rich Bilotti of current market valuations, "This is a panic not based on fundamentals."
Indeed Bilotti and Morgan Stanley satellite analyst Vijay Jayant suggested that the fundamentals of both sectors have never been better with prospects for significant free cash flow per subscriber looking strong. In a number and jargon-studded conference call, the two suggested key factors for the outlook in cable and satellite.
For cable, they said, the key driver will be multiple revenue streams with cable modems playing a pivotal role in the industry's success. For satellite, prospects appear to hinge mostly on controlling churn as well as driving subscribers to higher (a.k.a. more expensive) service levels.
As for speculation that a merged DISH/DirecTV combo may choose to launch a price war against cable biggies, Bilotti maintained, "Given the leverage in the satellite industry, we don't see a price war in the next few years.
From SkyReport (Used with Permission)
Indeed Bilotti and Morgan Stanley satellite analyst Vijay Jayant suggested that the fundamentals of both sectors have never been better with prospects for significant free cash flow per subscriber looking strong. In a number and jargon-studded conference call, the two suggested key factors for the outlook in cable and satellite.
For cable, they said, the key driver will be multiple revenue streams with cable modems playing a pivotal role in the industry's success. For satellite, prospects appear to hinge mostly on controlling churn as well as driving subscribers to higher (a.k.a. more expensive) service levels.
As for speculation that a merged DISH/DirecTV combo may choose to launch a price war against cable biggies, Bilotti maintained, "Given the leverage in the satellite industry, we don't see a price war in the next few years.
From SkyReport (Used with Permission)
