Media Stocks Tumble on New Fears Over Cable Advertising |

Media Stocks Tumble on New Fears Over Cable Advertising

New Challenges Mount for Media Stocks

  • Lego movie, rising cable fees help boost first-quarter profit

  • Ad sales drop; weakest quarter in 7 years: Barclays analyst

Gerry Smith –

Time Warner Inc.’s Turner cable division reported a 2 percent drop in advertising revenue last quarter in spite of the seasonal boost from basketball games, sending media stocks tumbling on renewed concern about online competition.

Shares of Walt Disney Co., 21st Century Fox Inc., CBS Corp., Viacom Inc. and Discovery Communications Inc. all plummeted. Shares of Time Warner, the first of the big media companies to report first-quarter results, were little changed, since AT&T Inc. is in the process of acquiring the company for $85.4 billion.

“This is the weakest first quarter in advertising growth for Turner in at least seven years,” Barclays analyst Kannan Venkateshwar, who rates the stock neutral, wrote in a note to investors. “We appear to be at a point where pricing growth is not enough to offset the declines in volumes.”

Television ratings have been dropping, even for some live events like sports, as the web gives viewers more choices for entertainment, from streaming video on Netflix to snippets on Snapchat. In addition to losing ad revenue, Time Warner’s cable subscribers continued to fall last quarter as some cable customers cut the cord.

The ad sales drop overshadowed a quarter in which Time Warner once again squeezed profits from its shrinking television business by charging higher rates for its channels like CNN and HBO and selling old hit shows like “Friends.”

On top of it, the U.S. media giant benefited from a box office blockbuster with the “Lego Batman Movie” in the first quarter.

Time Warner has been able to keep increasing revenue by raising the fees it charges pay-TV providers like Comcast Corp. to carry its channels. Earnings beat analysts’ estimatesfor the 33th quarter in a row — good news for AT&T as it seeks to close its takeover by the end of the year. Profit was $1.66 a share, excluding some items, compared with the $1.46 average of predictions.

Time Warner, based in New York, has also hedged with investments outside the conventional pay-TV business, like buying a 10 percent stake in the Hulu streaming service and introducing online channels like HBO Now for consumers who don’t pay for cable.

If regulators approve the takeover, Dallas-based AT&T will become a telecommunications and media empire that will own much of the programming it provides to subscribers of its wireless, internet and pay-TV services.

Gerry Smith  |

The views expressed are not necessarily those of the publisher or Images accompanying posts are either owned by the author of said post or are in the public domain and included by the publisher of the blog on its initiative.

Leave a comment

You must be Logged in to post comment.

© 2012-2018 - Copyright - is not liable for the content of external web pages

© 2012-2017 - © Copyright / Copyright Disclaimer Under Section 107 of the Copyright Act 1976, allowance is made for "fair use" for purposes such as criticism, comment, news reporting, teaching, scholarship, and research. Fair use is a use permitted by copyright statute that might otherwise be infringing. Non-profit, educational or personal use tips the balance in favor of fair use. / Derechos Reservados & CLÁUSULA DE EXENCIÓN DE RESPONSABILIDAD: (El BLOG), tiene un carácter divulgativo, informativo y de entretenimiento, poniendo a disposición de todos, informaciones, noticias, reportajes, material audio-visivo y gráfico de contenido variado y sugestivo con el único interés de provocar un sano debate entre amigos e interesados. De no ser especificado, los artículos, comentarios y/o introducciones son escritos y propiedad de Antonio-"Bambino" Maldonado-Boschetti (indistintamente con siglas AMB - ◊◊B◊◊). Además, en EL BLOG se evidencian vínculos y se divulga información originaria de numerosas fuentes por lo que ni El BlOG ni Antonio-"Bambino" Maldonado-Boschetti son particular y específicamente responsables del contenido de aquellas.-- USO JUSTO (Fair Use): Descargo de Responsabilidad: y/o Antonio-"Bambino" Maldonado-Boschetti (AMB/◊◊B◊◊) no es (son) propietario de la mayor parte de los audios-vídeos que forma parte de la Galería de Vídeos de los cuales pertenecen a numerosos autores, artistas y/o productores. Aviso y reclamo que los derechos de autor bajo la sección 107 del Copyright Act 1976 (USA) permiten el uso y divulgación de este material con “USO JUSTO” para propósitos tales como crítica, comentario, noticias, enseñanza, becas e investigación. El “USO JUSTO” (Fair Use) es un uso lícito y permitido por la Ley de Derechos de Autor, que de lo contrario podría constituir una violación. El uso sin fines de lucro, educativo, noticioso o informativo, o personal inclina la balanza a favor del “uso justo" por parte de La información y el contenido "multimedia" publicado por EL BLOG son de carácter público, libre y gratuito. Pueden ser reproducidos con la obligatoriedad de citar la fuente: y a cada autor en particular. -- Los comentarios y reacciones de los lectores publicados en los "posts" son de la entera responsabilidad de quien los emite; EL BLOG intenta implementar un mecanismo de auto regulación y/o puede decidir no publicar comentarios que constituyan abuso o que lesionen el buen gusto y los derechos de otros. -- Se pueden enviar colaboraciones gratis directamente a quien se reserva el derecho de publicación.
All photos accompanying posts are either owned by the author of said post or are in the public domain and included by the blog on its initiative.

Creative Commons Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. está disponible bajo una licencia “Creative Commons” Reconocimiento-No comercial 4.0. Cualquier reconocimiento debe ser a y a cada autor/publicación en particular.

WP-Backgrounds Lite by InoPlugs Web Design and Juwelier Schönmann 1010 Wien
Confrontando la información, - el pasado y el presente...
"Estudia el pasado si quieres pronosticar el futuro" (Confucio)
“La historia es en realidad el registro de crímenes, locuras y adversidades de la humanidad” (E. Gibbon)