[Policy]End of Analog TV

According to this weeks commentary in BusinessWeek, February 17, 2009 is the big day for TV as Congress this year will decree that broadcasters must end analog transmissions on that date and switch to digital technology.

Although today many people have either cable or satellite which basically receive digital signal there are still some number of people using analog signal to receive the basic cables such as NBC or ABC. It is still too early for the big change however as the deadline approaches the rest of the audiences would eventually turned to either their local cable or satellite providers which should be great news for these companys.

So lets take a look at the following cable or satellite tv service providers that could benefit from this policy in the long run:

• Comcast (CMCSA): the Philadelphia, PA based cable tv service provider also has broadband internet service and local tv stations. The stock was trading at 52 week low of below $26 per share at the end of December bu has climbed $2 since. The recent partnering with Time Warner to lauch on-demand network would beef up the digital cable content to compete with satellite tv service.
• Charter Communications(CHTR): the St. Louis, MO based cable tv company offering digital cable service, broadband internet and video on demand. Recently the company launched a new music on demand service for a subscription fee of $9.99 per month to tap into the new online music industry which is bringing lots of cash for Apple with the iPOD. The stock is trading at near 5 year low as the net loss surged in 2004. However based on recent quarter data the new annual report should bring good news to the company.
• Cablevision System (CVC): the Bethpage, NY based firm provides cable tv service and high speed internet service. The year has not been friendly for the stock as it is trading near 52 week low of 24.9 per share.
• DirectTV (DTV): the El Segundo, CA based company provides satellite tv service for US and Latin America. By the end of 2004 it has about 13.9 million US subscribers and 1.6 million Latin America subscribers. The company has continuous growth in revenue yet the net loss took a big dip on high cost and recurring charge. The stock has been trading in between 50 day moving average and 200 day moving average.
• EchoStar Communications (DISH): the Englewood, CO based satellite tv service provider has about 10 million subscribers ending 2004. The stock is currently trading at P/E ratio of just 8.99 compare to industry norm of 25.64, quite a discount in the sense. The company is bringing in consistant revenue growth and pretty consistent net income. However the stock hasn't done well last year due to competition from cable tv but has shown sign of recovery recently.