Shares of the largest pay-TV distributors, including pending merger partners Comcast and Time Warner Cable, spiraled downward Monday on news of the President’s plan.
It isn’t broke yet, but it is clearly breaking. Taken from comments made by network owners and pay-TV distributors during their third quarter earnings calls.
Change is coming to the pay-TV business. It’s going to be a bloodbath — and not everyone will survive.
Netflix stock plummeted by about $115 per share after reporting third-quarter results that missed expectations. It also followed an announcement earlier in the day that HBO Go will be available to people without a pay-TV subscription starting next year.
As many as 10% of HBO’s 30 million subscribers are “non-revenue generating.” A new report from Barclays Capital says converting half of those subscribers to paying ones would generate between $72 million and $144 million in cash.
Uniting the Warner Bros and 20th Century Fox production studios would give Rupert Murdoch control over the two largest film and television catalogs ever assembled, creating a highly lucrative annuity and allowing for unprecedented sway over how content is made and sold across distribution platforms.
TV Everywhere? More like Advertising Everywhere. “It’s almost like the networks are trying to drive you to platforms like Netflix or Amazon Prime,” said BTIG analyst Rich Greenfield, who posted the video as part of a research report on TV Everywhere.
Want to know why Aereo is dead? Follow the money.
The telecommunications giant’s $67.1 billion for DirecTV indirectly makes the case for Comcast that it needs to merge with Time Warner Cable because competition is increasing.
A new report by Citigroup highlights how web-based video is consumed across the globe, and the opportunities and challenges it presents to established TV players.
A Needham & Co. report estimates that allowing consumers to buy their channels “a la carte” would result in $113 million in lost value and cost 1.4 million jobs, among other conclusions.
Time Warner Cable’s loss of 306,000 video subscribers as a result of its blacking out CBS for the better part of August proves that the fight against programming-fee increases is futile. The situation is best summed up with a line from Goodfellas: Fuck you, pay me.