In recent years we have started to see a growing number of small cable TV networks shut down their video service since it is no longer profitable. One of the big questions is whether larger cable TV companies would buy the smaller ones even as they struggle with their own cord cutting issues.
We have our answer.
Last year, Spectrum agreed to buy two small cable TV companies: Astrea, which operates in several towns in Wisconsin and northern Michigan, as well as a city-owned business based in Norway, Michigan. Both deals are still pending approval by the Federal Communications Commission and others.
Buying smaller cable TV companies is a quick way for Comcast and Spectrum to add new customers. This both helps their bottom line by bringing in more revenue and also helps its important subscriber numbers that investors look at. By adding more customers, the companies also spread its costs — from employees to equipment — across a wider base.
2024 seems to be the year that both Spectrum, as well as fellow cable giant Comcast, dive headfirst into buying smaller cable TV companies.
At a time when most small cable TV companies are realizing that it’s no longer profitable to keep video running, many are left wondering how they can continue with the new competition from services like 5G home internet. This has made them far more willing to sell at a price that major cable TV companies have been willing to pay.
The question now is how many small companies are big providers like Comcast and Spectrum willing to buy, and whether regulators step in.
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