LBRDB - Cable has bright days ahead Morgan Stanley says - but not until after lingering hangover

A year-ahead look at cable and satellite companies from Morgan Stanley argues that it's been good times in 2021 - but the industry is drawing capital and competitive heat that will continue to pressure added subscriptions. Long-term, the firm is staying bullish, but the "post-pandemic hangover" for net subscription adds is expected to persist in 2022, Benjamin Swinburne and team write. Broadband is offering its market participants "attractive and rising returns, and that's attracting capital and competition," the firm says. In the long term, the business is bolstered by high (and growing consumer demand), pricing power, high barriers to entry, rational competition and a "relatively light" regulatory touch. For now, though, the business is facing challenges that are certainly pull-forward issue from the pandemic but which should persist a while longer - slowing net additions, and rising capital investment creating a more challenging investor backdrop. That's led the firm to

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Cable has bright days ahead, Morgan Stanley says - but not until after lingering hangover