blog Market Intelligence /marketintelligence/en/news-insights/blog/us-operators-bolster-downward-trajectory-for-us-cable-capex-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 Operators Bolster Downward Trajectory for US Cable Capex Forecast

Top 10 VR Games By Revenue

Ad agencies struggle to survive second quarter of 2020

Video Supply-Side Platforms Hurt By Q2'20 Fall In Video Ads, Rebounding In 2021

AVIA: Building The Case For Satellite 5G


US Operators Bolster Downward Trajectory for US Cable Capex Forecast

Highlights

Operators continue to invest through the roiling economic picture, including lifting scalable infrastructure, or SI, spending for increased bandwidth.

Declining subscriber penetration rates have not significantly crimped footprint expansion represented in line extension capex.

The turmoil of 2020 is expected to advance rather than disrupt the cable industry's newly established trend of declining capital expenditures with a 6.0% annual drop that sets the course for the five-year outlook. According to Kagan estimates for total cable capex, spending by U.S. operators is on track to slide to less than $16.9 billion in 2020. Reduced need for video-supporting set-top boxes is the largest contributor to the decline amid household belt-tightening and shifting viewing patterns. The impacts of the global pandemic could be seen in other reporting categories, most notably the outsized drop in the support segment.

Operators continue to invest through the roiling economic picture, including lifting scalable infrastructure, or SI, spending for increased bandwidth. Though operators are servicing a reduced number of residential subscriptions across the traditional triple play, declining penetration rates have not significantly crimped footprint expansion represented in line extension capex.

 

SNL Image

The five-year outlook points to reduced overall levels with a saw-toothed trajectory impacted by our expectations for an investment ramp in DOCSIS 4.0 upgrades in the back half of the five-year outlook.

We model industry spending will drop to nearly $16.2 billion by 2024, producing a negative 2.0% CAGR from 2019 to 2024. It is an acceleration from the comparable five-year historical period, which produced a 0.6% CAGR amid the shifting investment patterns from 2014 to 2019.

US operators contribute to downward trajectory for US cable capex forecast

Click here (client subscription required)
Learn more about Market Intelligence
Request Demo