Friday, April 5, 2013

The future of cable TV

Long story short, there isn't one.

The story is the same all over North America. Cable companies are losing subscribers, and the rate of that loss will gain momentum going forward.

On the face of it, this is not much of a story, especially to people like me who don't watch TV anyway.

(I'm lying of course; I've got Piers on in the background at this very moment. Unlike mainstream news channels however, at least the think tank here at Falling Downs Farm lets you know when we're lying.)

But what makes it important is this; you can profit from the demise of the cable TV industry!

Any publicly traded cable provider that relies on cable subscribers for a significant portion of its revenue has peaked and is heading for oblivion, sooner rather than later.

Those that have successfully remade themselves as internet providers have a chance, but the more a company relies on cable revenue the more vulnerable they are.

One of the most sure-fire investment bets for the next few years is going massively short on cable providers.

Do it now, thank me later.

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