Digital TV a Boon to Satellite and Cable

Unless the Obama administration changes something between now and February 17th, all televisions that don’t receive their TV signal digitally will cease working. If you’ve got rabbit ears on your set, you probably don’t get digital TV.

The conversion was a post-911 improvement where the frequencies now used by television will be given to emergency responders and law enforcement. Unfortunately, that also means that millions of Americans that still depend upon “terrestrial” television will need to find a new way to get digital TV signals.

The government’s solution has been to issue vouchers for set-top converters. Regrettably, that program is running “a teensy bit behind.” In other words: don’t hold your breath. So following the law of unintended consequences, digital television outlets like cable and satellite television will see a huge bump in new subscribers.

It’ll be easier – but not necessarily cheaper – for many consumers to sign up for a subscription through a cable outlet like Comcast (Nasdaq: CMCSA) or Cablevision Systems (NYSE: CVC).

The other route, and a necessary one for rural homes, is to go with a satellite TV operator like The DIRECTV Group (NYSE: DTV) or Dish Network (Nasdaq: DISH).

This author’s parents (in their 70s) purchased cable for the first time ever this month, solely because of the digital conversion. How many other households will do the same? For every household that’s cutting back expenses like cable, there will be many more who see a need to subscribe. And these subscribers will spell profits for the digital television providers.

Companies mentioned in this article: CMCSA, CVC, DTV and DISH.

• Verizon (NYSE: VZ) Loves the Senate
• Look Before You Leap into the DGI IPO: Watch out for these 4 Big Risks
• Grupo Televisa (NYSE: TV): Stock of the Day

Sign Up now and receive this Free report: Collect 122% in the Next 12 Months From Gold's Surge.

The Single Best Investment for 2009

Forget another stimulus package. Or retreating into "safe-havens" like cash and gold. All you need in 2009 is a small exposure to the "secret" White Cap Index.

It's up as much as 171% straight through Wall Street's meltdown. And one of the latest stocks to be added - an Internet-related venture capital company - is up over 100% since its inclusion into the Index.

Just weeks from now, we'll add another White Cap stock to this market-trouncing index. To get a sneak peek, click here for full details.

One Response to “Digital TV a Boon to Satellite and Cable”

1. Myron Sywak Says:
   June 14th, 2009 at 4:17 pm

   After trying in vain half the day to hook up the little black box I see that you are correct — the whole fix is a gimmick to get me to convert to Pay-cable from Free-Broadcast. Since most of what is on TV is junk I may be better off without anykind of TV.

   Reply

Comments

Check out our selection of daily Investment Research:

We Respect Your Privacy

---

What is Investment U?

Since 1999, Investment U has provided impartial, no-nonsense investment advice on how to build long-lasting wealth.

---

Recent Articles

Platinum Services

The Oxford Club is an exclusive, global network of investors, who collectively participate in the pursuit of prosperity and wealth. The Club is renowned for its market-beating, tried-and-true investment principles.

The White Cap Report exclusively identifies companies, White Caps, which - by being among the earliest to gain traction - have secured dominant positions within untapped, billion-dollar markets.

With an elite trading team at the helm, the Xcelerated Profits Report shows any investor how to "invest like a pro," using high-level, yet easy-to-execute strategies that "xcelerate" profits while minimizing risk.

---