Cable provider Breezeline just lost 28,000 broadband subscribers in 2024 — and now S&P Global Ratings has issued a “negative outlook” on its parent company Cogeco Communications (CGO) after flat earnings growth and more subscriber losses expected in 2025.
Over a year ago Breezeline cancelled the Newsmax channel but kept left-wing channels like CNN and MSNBC, along with many other costly liberal networks with little viewership. According to Nielsen, Newsmax is the 4th highest-rated cable channel and a top 10 cable channel of all measured.
Newsmax launched a “switch” campaign urging Breezeline customers to drop the company for their broadband and cable — a move that has apparently had a significant impact.
Breezeline is now facing competition from better priced alternatives that offer faster access to internet, TV and phone services, such as Verizon and AT&T, S&P said.
Breezline’s pay TV service has also seen erosion as competitors like YouTube TV and Fubo have seen their market share grow. Both YouTube TV and Fubo carry Newsmax.
Breezeline is poised to lose market share to cheaper wireless connections, S&P said.
“We believe Breezeline’s residential broadband services revenue will be negative in 2025,” S&P said.
“We project Breezeline’s broadband subscriber base will contract about 2% in 2025, driving broadband penetration down to the 35% area from 36.5% in 2024.”
The ratings agency in February issued a “negative outlook” warning on Cogeco Communications Inc, the parent company of the Breezeline brand.
Breezeline is headquartered in Quincy, Massachusetts, and operates in 13 U.S. states including Connecticut, Delaware, Florida, Maine, Maryland, Massachusetts, New Hampshire, New York, Ohio, Pennsylvania, South Carolina, Virginia, and West Virginia. Breezeline is a subsidiary of Canadian-owned Cogeco.
Newsmax reached out to Breezeline for comment, but the company did not respond.