Tiekgus McClain

Introduction to Management and Decision Making

MGT280 Principles of Management

June 23, 2021

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 Cable television is a video delivery service provided to many communities via a coaxial

cable or optic fibers. Cable service serves as transmissions to subscribers of video programming

or service. There are many cable service providers in the U.S. The cable television market is an

extremely competitive business. Many cable providers within this industry are only successful

when essential management concepts are maximized.

The cable provider industry operates and distributes television programs across the U.S.

on a subscription or fee basis through digital platforms (IBISWORLD). This industry has seen an

increase in new subscriptions since the global affects of COVID 19. More viewers are probably

more inclined to watching television because of the shutdowns across the nation. Cable

programming have also increased due to the global viewing of news coverage of social

injustices, politics, and COVID19 information.

After researching information on the industry’s outlook, lower revenues were made in

this industry during 2021 because of the cancellations or postponements of professional sports.

Many operators also seen a decrease in revenues generated from advertising commercials. Over

the next five years, IBISWORLD predicts that the cable industry will grow slowly due to the

increase in the streaming access for many consumers. With the economy going back to normal,

the cable industry will more likely grow in small numbers as employment grows also. Depending

on the consumer demand cable providers must find ways to be more competitive with weighing

in the price of cable television.

Operators in this industry must find ways of reaching consumers especially with the

demands of advertising and habits of viewers. “Cable networks have been situated in between

and will continue to experience both opportunities and threats during the digital age.”

(IBISWORLD) Cable companies within the industry build their backbones on the support of

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 telecommunication companies in hopes of providing their subscribers with access to many

networks as possible.

One of the most successful cable providers that was listed in this research was Comcast.

Comcast is the highest provider servicing of video, high speed internet, and voice services to

residential and business services in the United States. Comcast has reported a substantial revenue

consistently from five years to present of 22.2 billion dollars. Although Comcast seen a minor

decline during the rise of Covid the numbers grew due to more employees and students working

from home. The primary drivers for their market have been cost efficient upgrades to basic cable

packages and rate adjustments. Comcast revenue also comes from a large population of

subscribers in wealthy communities. Acquisitions has also helped Comcast business grow in

large numbers. Comcast has rebranded it name to Spectrum and its revenue has quadrupled

making it the number one cable provider in the U.S.

As the need for consumer demands grows, cable providers have made plans to be more

cost effective. The industry has focus on optimizing great service especially with mobile

services. Consumers are spending a lot more time on the screens of their phones instead of in

front of the television so making more plans on bundled deals are essential. Being able to engage

customers by advertising more deals or discounts will give them a better chance to increase sales.

Consumers are in favor of more affordable providers with access to internet, so it is imperative

that more cable providers follow the signs of the new trend in streaming services.

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 References

Anagnos. C., “Cable Providers are losing customers.” Foundation for Economic Education.

2018. November. www.fee.org

IBISWORLD. Cable Provider Industry.

“Business world of Comcast.” www.comcast.com

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