Cheap TVs: Last Week’s Plunge In Pay-TV Stocks Could Have Lasting Effect

This post originally appeared at Smart Content News.

Last week’s meltdown among media stocks left many Wall Street professionals scratching their heads.

Objectively speaking, the earnings news that triggered the sell-off, first from Disney and followed by Time Warner, Discovery and Viacom, was sobering but hardly catastrophic. Disney made a modest downward adjustment to its full-year forecast for its cable unit, led by ESPN, from “high single digits” to “mid-single digits” due stock-arrow-downto continued subscriber losses among pay-TV providers. Viacom reported a 9 percent year-on-year decline in advertising revenue, driven by falling ratings for its cable networks, but its net income for the quarter actually beat Wall Street estimates.

Yet it was enough to start a stampede that wiped out more than $45 billion in market value across seven pay-TV companies.

Some of those losses are likely to be recovered over the coming weeks and months as investors get a grip on themselves and the companies trim spending to boost EPS. But the massive selloff could still have a lasting effect on the sector.

The abrupt selloff, well beyond what the fundamentals of the stocks would justify, seemed to reflect a dramatic shift in market sentiment regarding valuation benchmarks and appropriate share-price multiples for media companies as investors focus on structural changes in the pay-TV business.  Resetting those assumptions to pre-meltdown levels might require some restructuring of the sector. Read More »

Anvato adds instant TV everywhere syndication with live-to-VOD 

The new feature is designed to allow content owners and programmers to create video-on-demand files from their live linear streams and then syndicate these files in near real time to multiple online destinations such as Netflix and Hulu, as well as MVPDs including cable operators and telcos.

Source: Anvato adds instant TV everywhere syndication with live-to-VOD | VOD | News | Rapid TV News

OTT & the Net New Effect 

For premium programmers, over-the-top video is very much a double-edged sword. On the one hand, OTT video is creating new competitors and threatening the dearly held dual-stream revenue model that includes income both from advertising and from licensing deals with pay-TV operators. On the other hand, OTT also gives programmers a new distribution channel and a way to create new content packages that wouldn’t otherwise be possible.

Source: OTT & the Net New Effect | Light Reading

FIFA Women’s World Cup Takes Fox Sports Go to New Heights 

For Team USA’s first Group Stage match — a 1-0 win over Australia on June 8 — Fox Sports registered 118,000 unique streams on its Fox Sports Go platform for desktop, tablets, and smartphones. That made it the most-streamed authenticated event ever on the app, beating out even Game 7 of the 2014 World Series.

Source: FIFA Women’s World Cup Takes Fox Sports Go to New Heights : Sports Video Group