Whether you’re a beginner or well-versed in investments, you probably know that one of the “rules” is that you need to diversify your investment portfolio. So, say you’ve already got some property investments and you wish to branch out.
Cable seems like a good idea, but is it really? You’ve been hearing some rumblings that cable isn’t likely to stick around for much longer. After all, it’s dying and more and more, people are looking into alternatives.
It’s important to do some thorough research before deciding to sink your money into any particular venture, and this is no different. Allow us to consider the pros and cons of investing in cable companies and whether or not they’re actually a good idea for your portfolio.
People Are Leaving Cable Behind, But They’re Moving Online
The fear-mongering whispers are everywhere: cable is dying! And it’s true – subscribers are cutting the cord en-masse, because a lot of the time, the deals are simply not worth it anymore.
The prices are high, the packages are bloated, and there are better ways to get your TV fix. However, just because they’re switching from cable doesn’t mean they aren’t opting for other services within the same company.
If you take a look at any of the major cable companies, they lost cable subscribers, but they gained way more broadband subscribers. To the tune of millions, and much surpassing what they lost with cord cutting.
Comcast and Charter were able to cover their losses and then some. Others were not so lucky: both DISH and AT&T gained broadband subscribers in place of the ones they lost, but it wasn’t enough to make up for it.
Look For Companies Who Are Competitive
A major part of a company’s long-term survival is their degree of competitiveness. The market is big enough for a few different cable companies, but the successful ones know how to distinguish themselves by putting out competitive offers meant to attract customers. That supports them on the market and gives them a bit of leverage.
Companies who deal strictly with cable will not fare as well over time, because they are limited in what they can offer customers. In contrast, other companies have an entire range of services and holdings that can give them an advantage and a boost over the companies that have a narrower range.
Companies can also get a leg up on the competition by offering different service bundles that can really set them apart and offer customers attractive services they wouldn’t have normally been able to get.
The point of offering bundles, deals, and extras is to incentivize customers to sign up or keep their cable subscription. If they drop cable, they also lose other services that come with it or they lose discounts and access to certain things they want.
However, if the price is right for the value they feel they receive, they will be satisfied to keep the subscription, even if they might not be interested in cable. It’s all about striking a balance in what customers look for and what the company is offering them. The companies that survive are the ones that know how to gain a competitive edge.
Who’s Adapting Based on Consumer Preferences?
The choice to make when it comes to cable companies is all about who is flexible enough to adapt to the new trends and consumer expectations. The interesting thing with cable is that while customers may be giving it up, that doesn’t mean they’re not still interested in the channels they were getting. They may just not be willing to continue to pay for overpriced packages.
The secret may be putting together packages for streaming services – these packages tend to offer the best of both worlds. The price is lower than a traditional cable package, but it still retains all the channels customers are interested in.
The trend is definitely skewing towards streaming services, as more and more companies are creating their own. It is those companies that are likely to fare well over the ones stuck in the past and only offering traditional cable options.
Should You Invest in a Cable Company?
So, all things considered, are cable companies worth investing in? Well, it really depends on the company you are looking to invest in. Not all cable companies are the same, and while some of them are not likely to produce a good return, there are others that are projected to survive long-term. So, in short: cable companies are worth investing in, as long as you pick the right ones.
The ones to stay away from are the companies that haven’t been able to make the transition successfully. Unfortunately, there are companies who are very much stuck in the past and who continue to operate in the exact same way they did twenty years ago. Because of the rapidly changing landscape, these companies will not make it.
On the flipside, we’ve also got companies who had the forethought to expand and change with the times. There are, indeed, companies who have managed to integrate streaming services and who’ve created packages that are attractive and that incentivize both existing customers and new ones.
That turned out to be a winning strategy for cable companies, because it allows them to not only stay afloat, but actively generate more value and create more profit in the long term.
Identifying these companies who are looking towards the future and investing in them can be a sound decision. They will continue to be at the forefront of the industry and will continue to keep your money safe.