Cablevision Systems Corp. - It's Time To Sell The Bonds
Downtown Investment Advisory • 10 Comments
Downtown Investment Advisory • 10 Comments
Cablevision Continues Its Battle For Relevance
Cablevision Is In Decline
Jan. 10, 2014, 11:53 AM
- Starz (STRZA +2.4%) will celebrate its one-year anniversary as a standalone company next week.
- While investors will marvel at the 116% gain they have racked up over the period, the fun might not be over just yet.
- The company will now be allowed to have sales talks amid great speculation that the media asset is highly-coveted.
- Potential bidders: Cablevision (CVC), CBS (CBS), Viacom (VIAB), 21st Century Fox (FOXA)
Jan. 7, 2014, 11:57 AM
- Online purchases of movies rose 47% to $1.12B in 2013 in the U.S., according to Digital Entertainment Group. The striking growth rate has calmed fears that consumers would opt to wait for rental windows to open up before buying movies.
- Streaming subscription rentals rose 32% to $3.16B during the period.
- Kiosk DVD sales slipped 1%, but the aging business still commanded $1.9B in sales. Brick-and-mortar rentals were off 14.3% to $1.042B.
- If there was a surprise, it might be the relatively slow pace of VOD movie sales, up only 4.8% to $2.11B.
- Full report (.pdf)
- Related stocks: NFLX, OUTR, VZ, CMCSA, CHTR, CVC, TWC, DIS, FOXA, DISH, DTV.
Jan. 3, 2014, 2:01 PM
- Fox Sports (FOXA) will stream the Super Bowl live for free, but will restrict online access to the NFC postseason games to authenticated Pay-TV customers of Comcast, AT&T's U-verse, and Cablevision, according to Variety.
- The fragmented approach by the network is in part due to its need to keep cable/satellite providers (DISH, DTV, CHTR, CVC, TWC) content that the TV Everywhere authentication model is moving forward - while at the same not limiting itself to advertising opportunities for the most-watched event of the year.
- This will be the third year in a row that the Super Bowl has been streamed.
Dec. 31, 2013, 2:13 PM
- 2014 could be the year that Pay-TV operators (DISH, DTV, TWC, CHTR, CVC) decide to take a stand against higher sports programming costs with subscriber growth stagnant and consumers rebelling against higher monthly fees.
- The most contentious battle could be in Los Angeles where Time Warner Cable's regional sports network, which includes L.A. Dodgers games, is behind in adding distribution channels.
- In a clash of titans, Disney (DIS) is still in negotiations with Dish Network over an ESPN contract to replace the one that expired in October. The carriage fee for ESPN already averages an industry-high $5.54/subscriber, but Wells Fargo thinks that rate will go to $7.65/subscriber by 2018. If there is an exec in the sector with the moxie to go toe-to-toe with ESPN, analysts think Charlie Ergen fits the bill.
- New sports stations from Fox (FOXA) and NBC (CMCSA) don't have the leverage that ESPN carries around, but are still forecast to command higher rates.
- A rising moat could also help lift CBS (CBS) and Madison Square Garden (MSG).
Dec. 27, 2013, 2:21 PM
- Pay-TV operators and broadcasters are playing nicely together this December without the usual late drama heading into year-end contract expirations.
- A deal between frequent combatants Viacom and Time Warner Cable was announced a surprising seven days before a potential blackout date and is indicative of the calm atmosphere.
- Analysts think the Time Warner Cable-CBS battle over the summer might have shown the painful impact of holding consumers hostages in carriage fee negotiations. If they are right, cable and satellite companies (CHTR, TWC, CVC, DISH, DTV) might have lost some leverage in future negotiations to the broadcasters (FOXA, DIS, CBS, CMCSA, TWX, AMCX, VIAB).
Dec. 11, 2013, 3:25 PM
- An initiative started last month by Comcast (CMCSA -1%) to utilize a "See It" button on Twitter to help users watch a show or buy tickets via its Fandago property appears to be catching on.
- The service could see a major expansion as early as Q1 that allows Twitter users who tweet "SEEIt" to have an automatic button embedded in their message that can send users directly to a show online or through video on demand. In some cases, the SEEIt button will act as a remote control for users' set top boxes.
- The SEEIt service is seen as a way to boost ratings metrics and potentially advertising rates for shows which light up social media.
- Signing up for the Twitter-Comcast service: Disney (DIS), Discovery Communications (DISCA), Fox Networks (FOXA), Cablevision (CVC), Charter (CHTR), Time Warner Cable (TWC).
Dec. 4, 2013, 5:23 PM
- The economic argument is lopsided against the Pay-TV industry (CHTR, CVC, TWC, DISH, DTV) moving to an a la carte system, reasons Needham.
- The investment firm has some staggering estimates which indicate consumers could end up paying significantly more for an unbundled system or see a large number of networks close up shop to limit their choices.
- Working backwards, 180 channels at an average annual programming cost of $280M per year requires a bundled system to create the ad and subscriber revenue to support it.
- Though the math might work out fine and dandy, subscriber losses and a younger generation unfazed by cord-cutting indicates something might need to give.
- The wildcard in the mix: Online TV initiatives from Sony, Google, and Intel as well as the evolution of Netflix (NFLX) will also play a factor.
- Related stocks: CBS, DIS, AMCX, TWX, CMCSA, FOXA, SNI, MSG, DISCA
Dec. 4, 2013, 9:52 AM
- Higher spending on programming by network owners is paying off immediately in the form of increased revenue from content, according to media analysts.
- The most recent round of reports from Time Warner (TWX -0.4%), CBS (CBS +0.4%), Viacom (VIAB -0.4%), and 21st Century Fox (FOXA -0.8%) show higher program costs were offset by licensing and advertising revenue. Even big sports rights deals from Disney (DIS -0.7%) and NBC (CMCSA) appear to be adding enough profits to justify the steep costs.
- What to watch: A breaking point on programming costs could be seen in the future with the Pay-TV industry (DISH, DTV, CHTR, CVC, TWC) dabbling with smaller bundles for consumers.
- Related ETF: PBS.
Dec. 2, 2013, 8:19 AM
- A massive deal by Rogers Communications (RCI) to buy the rights to broadcast NHL hockey in Canada is tied to preventing cord-cutting, according to industry watchers.
- Analysts call the move by the company a "reasonably priced" insurance policy against long-term cash flow erosion.
- In the U.S., ESPN's NFL and college football packages have helped prop up carriage fees for Disney (DIS) - but haven't stemmed subscriber losses for Pay-TV operator's (CHTR, TWC, CVC, DISH, DTV).
- Still, live sports programming is seen as critical to keeping the bundled network model in place for the industry and future sports rights bidding could go sky-high.
- Previous on cord-cutting: Subscriber losses in the U.S.
Nov. 26, 2013, 3:32 PM
- A report on a potential bid by Cox Communications to buy Time Warner Cable (TWC +3%) has brought more buyers into the Pay-TV sector again.
- The WSJ says its sources indicate a final decision by Cox hasn't been made yet. The chase could be rather interesting with several joint and single bidders now in the mix.
- Cablevision (CVC +3.7%), Charter Communications (CHTR +1.1%), Dish Network (DISH +3.2%), and DirecTV (DTV +1.6%) are all higher for the day on the ongoing merger chatter - while Comcast (CMCSA +0.1%) is level with its bid seen as slightly more problematic and the company unreachable as an acquisition.
- Sector-related: No denying impact of cord-cutting.
Nov. 26, 2013, 1:16 PM
- Over the last three calendar years an estimated 5M cable and broadband subscribers have been lost as the Pay-TV sector continues to feel the impact of cord-cutting and the coming of age of cord-nevers.
- The consumer shift toward viewing content on the Internet and mobile devices is so well-entrenched that the industry could dip below the 40M subscriber mark for the first time in over five years. A major surprise is that the viewing slump also include major sporting events which were once considered the lynchpin strategy to prevent the cord-cutting phenomenon. (BI chart)
- The recent surge in cable/media stocks is a result of the industry deciding it won't just sit on its hands amid stalled growth and will be open to consolidation.
- Previous: Putting a number to cord-cutting.
- Related stocks: CHTR, CVC, TWC, CMCSA, DISH, DTV.
- Related ETFs: PBS.
Nov. 22, 2013, 10:08 AM
- Shares of Comcast (CMCSA +2.6%) are on the move after CNBC reports that some significant shareholders are telling management to take a look at bidding for Time Warner Cable (TWC +7.3%).
- Though anti-trust issues can't be ignored, many media analysts think a CMCSA-TWC marriage makes more sense than TWC-Charter (CHTR) coupling.
- Don't forget about Cablevision (CVC): Shares are up 6.4% as investors bet it might make it to the altar as well.
Nov. 13, 2013, 7:41 AM
- Research firm MoffettNathanson estimates the pay-TV industry lost 0.2% of its subscriber count in Q3 Y/Y.
- The drop which is partially attributable to the impact of more streaming options for consumers marks the worst 12-month loss of subscribers in the pay TV industry's history.
- In this quarter's batch of earnings conference calls from industry heavyweights, execs showed a great deal of surprise at how resistant the sub-thirty year old crowd is to adding television services on top of broadband.
- Related stocks: DISH, DTV, CHTR, TWC, CVC, CMCSA
- Related earnings call transcripts: VZ, DISH, CHTR
Nov. 11, 2013, 2:00 PM
- Cablevision (CVC +1.5%) has had enough with cable/satellite service hoppers jumping from one promotional deal to another.
- The company says it ended the practice of offering "repetitive" promotional discounts during Q3 and will maintain that policy.
- Analysts think the cable operator risks losing even more subscribers over the policy after Q3 saw a drop of 37K video and 13K broadband customers.
Nov. 8, 2013, 9:30 AM
- Cablevision (CVC) says it lost about 29K customers in Q3 compared to a year ago as video, high-speed data, and voice all saw a dip.
- Average monthly revenue per video customer increased 5.4% to $8.38.
- Lower interest expenses and reduced losses on derivatives appears to have help boost the company to a level of profitability which exceeded the expectations of analysts.
- CVC +5.6% premarket.
Nov. 8, 2013, 8:40 AM
- Cablevision (CVC): Q3 EPS of $0.22 beats by $0.10.
- Revenue of $1.57B (+1.8% Y/Y) in-line. (PR)
Cablevision Systems Corp. is a telecommunications and media company, which includes a full suite of advanced digital television, voice and high-speed Internet services, local media and programming properties. It operates through three reportable segments: Cable, Lightpath and Other. The Cable... More
Industry: CATV Systems
Country: United States
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