While Wall Street has not been the bearer of good news lately, shares of major providers soared on news from a leading analyst that predicted a healthy fourth quarter for satellite providers that was likely to extend into 2009. While economic news has not been good, satellite TV is booming thanks to increased emphasis on high definition programming and a commitment to provide more local channels in high definition.
One provider will be offering local programming in high definition in 88% of subscriber homes by the end of 2008. This is good news for the fourth quarter and also in advance of the February switchover to all digital broadcasting. The more local channels satellite providers can provide in high definition, the more marketable they are to people who are considering subscribing to satellite television in advance of the digital switch.
Satellite companies will obviously be trumpeting the fact they have more local channels available in their marketing efforts in the coming months that lead up to the digital switchover. Analysts are predicting an increase in subscriptions leading up to and after the switchover in 2009. Local channels in high definition will definitely be a major selling point for people who have been holding out on switching to satellite. People will also consider satellite because it offers great high definition programming and more sports and exclusive coverage than cable, and satellite companies are sweetening the deal with attractive introductory packages and extras such as free digital video recorders and low entry prices. Making satellite television increasingly competitive with cable is starting to show on the spreadsheets of major satellite providers, and this is making Wall Street analysts very happy.
Analysts are also pointing to the position that satellite TV has in the marketplace now, and their smart credit quality from their subscribers that makes them solvent and safe buys. Some of the bigger players in the satellite TV sector have insulated themselves from the current economic slowdown by qualifying their customers and only accepting good credit risks. This is keeping these operations solvent, along with controlling costs. Between good management on the satellite TV provider's end and the potential for strong fourth quarter growth extending into 2009 due to the digital switchover, the playing field looks very good for satellite TV providers and investors looking for a good buy to beef up portfolios that have taken a battering in the past two months.
Satellite television is positioned for healthy growth because they continue to expand their programming offerings, particularly in the high definition arena. With demand for high definition programming on the rise, people are looking at satellite as cable is still trying to play catch up in offering high definition channels with the same volume that some of the leading satellite companies provide. Shares of the leading company rose when a leading analyst suggested that the company's solid management along with its strong credit quality amongst its subscriber base got it upgraded to a "Strong Buy". Investors are attracted by the company's management focus on improving customer service, installation and offering of programming make it poised for strong growth in the last quarter of this year and a good addition for portfolios that are hungry for a good deal. The satellite industry is a bright light on the rather dim economic news of the day.
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