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PayTV business and the crisis (part II)

October 31st, 2008

In my last post I wrote about some of the talk at MIPCOM about the crisis. It’s a few weeks later right now, and I have to re-assess my original statement of the (non-advertising dependent part of the) PayTV business not being affected by the crisis.

The reason for this revision is that I keep hearing from friends in the industry, and reading in the news that PayTV operators are having a tough time.

However, I believe that they’re having a tough time due to problems that are more financial in nature. Many of the new CableCo’s and Telco’s took on massive amounts of debt in the past to build, upgrade and roll out their networks. Subscriber roll-out/uptake probably hasn’t been as quick as they predicted/hoped for. Most of them have gone through a bunch of re-financing rounds, and now… they’re out of money and in need to go through another re-financing round.

The banks obviously are asking for more guarantees and stricter measures then ever. They have to, since they’re in trouble themselves. This is why I think we’ll see more lay-offs in the PayTV industry in the future.

However, I stick to my original statement that in times of crisis, people spend relatively more money on PayTV.

Originally published by Bastian Manintveld.

Filed under Events