real-time news and commentary for investors
Monday, Aug 5
If Cablevision's James Dolan is right about cable's future, who wins?
- A collapse of the bundled channel model would seemingly leave program providers such as Viacom (VIAB), Discovery Communications (DISCA), Scripps Networks (SNI), and AMC Networks (AMCX) out in the wild as fees could rise and fall more abruptly as hit shows come and go.
- Disney's (DIS) claims nothing could knock ESPN off its high horse (and high carriage fees) - but with NBC (CMCSA), 21st Century Fox (FOXA), and CBS (CBS) needing high-profile sports events on their schedule, the cost of future licensing deals could soar.
- Don't forget about Netflix (NFLX). Along with +30M subscribers in the U.S., even old-school cable stalwart Dolan admits he is a fan of the streaming service. Disruption in the cable/satellite market could lead to some cord-cutting and extra subscriptions for Netflix and Amazon (AMZN) Prime.