blog Market Intelligence /marketintelligence/en/news-insights/blog/us-cable-capex-falls-in-2019-charting-course-for-5-year-forecast content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

US Cable Capex Falls In 2019, Charting Course For 5-Year Forecast

Virgin Media-O2 Tie Up, EC Reversal on Three-O2 to Reboot Consolidation

COVID-19 Impacts Incumbent Telco Revenues In Western Europe

Disney+ Ditches Free Trials — Will Other Big Streamers Follow Suit?

COVID-19 Pandemic Likely To Cause US Telemedicine Boom

US Cable Capex Falls In 2019, Charting Course For 5-Year Forecast

The U.S. cable industry is on course to finish 2019 with its first drop in total capital expenditures in nearly a decade, marking a shift in budgeting that topped $20 billion in the trailing two years.

According to Kagan estimates for total cable capex, the tally for U.S. operators is expected to fall to approximately $17.62 billion in 2019 behind lower demand for set-top boxes and an easing in spending on the types of headend and network equipment that fall into the scalable infrastructure category.

Rather than an aberration, we expect the drop to mark the start of a prolonged decline in spending by an industry facing a consumer-driven retreat from big-ticket video delivery and the associated proprietary equipment to support it.

Our revised outlook calls for a decline in the five-year view but still at elevated levels when compared to historical capex totals. We estimate industry spending will drop to $16.17 billion by 2023, producing a negative 4.7% CAGR. The downward trajectory is in contrast to the comparable five-year historical period, which produced a 6.8% CAGR with persistent year-over-year growth from 2013 to 2018.

Capital intensity, or capex as a percentage of revenue, is expected to produce even more significant declines in the outlook, reaching below the historical watermark. Expectations for modest increases in overall revenue, primarily from residential broadband and commercial services, overlaid on reduced total capex work to shrink industry intensity to 11.3% in by 2023.

Learn more about Market Intelligence
Request Demo

US Cable Capex Falls In 2019, Charting Course For 5-Year Forecast

Click here