Comcast Corporation (NASDAQ:CMCSA), DIRECTV (NASDAQ:DTV) And Industry Consolidation
Comcast Corporation (NASDAQ:CMCSA) is part of paid TV industry which is recently facing much of heat powered by increasing competition in the space as well as viewership transition from traditional TV to online TV much of which is pioneered by Netflix, Inc. (NASDAQ:NFLX).
Hedge Funds and Equity Analysts
Appaloosa Management, having $20 billion in assets under management, recently reveled in its latest filing that it sold the stock of Comcast Corporation (NASDAQ:CMCSA) worth $61 million as well as that of Microsoft Corporation (NASDAQ:MSFT) worth $48 million.
Analysts at Zacks Equity Research maintain “buy” rating for the stock of Comcast Corporation (NASDAQ:CMCSA). Recently the research firm quoted that Comcast Corporation is conducting research and development for 4K ultraHD resolution.
Beyond the HDTV technology
Rival firm, DIRECTV (NASDAQ:DTV) is emphasizing on the service quality improvements to lead the competition and partly this would be addressed with its planned launch of two satellites in 2014 and 2015. Besides, the company is also experimenting 4K ultraHD video services which provides qualitative shift with resolution of 4,000 pixels. Compared to HDTV technology, this next-generation advancement could significantly enhance video and sound quality.
Industry experts speculate possible merger between DIRECTV (NASDAQ:DTV) and DISH Network Corp (NASDAQ:DISH) amid the consolidation wave in the industry.
Consolidation in Paid TV Space
Comcast Corporation (NASDAQ:CMCSA) has also spurred headlines after being emerged as one of the bidders for Time Warner Cable Inc. (NYSE:TWC) whose market cap is approximately $37.45 billion. The market is also speculating that Comcast Corporation may consider the bid for TWC, jointly with Charter Communications, Inc. (NASDAQ:CHTR). Now surprisingly, if we compare the market capitalization, Charter Communications is having market cap of $13.74 billion and Comcast Corporation is having market cap of $127.29 billion.
High programming costs as well as increasing competition from telecom providers are considered among the key drivers for expected consolidation in the industry.