Converging networks: are Canadians ready to cut the tv cord?

Canadian Market Summary

May 15, 2018

All Canadian and U.S. video providers have now reported Q1 calendar results. With weaker-than-expected video results, we believe that the negative sentiment on U.S. video distribution has ramped up. While CMCSA has been experiencing weakness in video subscriber trends since Q3/17, Charter’s weaker-than-expected video results and AT&T’s poor results in the Entertainment segment (including linear and non-linear video services) have added to the concerns. Many investors of Canadian telecom and cable stocks are worried that it is just a matter of time before the Canadian video market experiences the same trends as those in the United States, since Canadians and Americans share many similarities with respect to the nature of the content consumed and the way that content is consumed.

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