Media Money
- Facebook's COO Sheryl Sandberg to Harvard Grads: ‘Can You Click On an Ad or Two’
- NCTA Trends: Mobile video, Watch ESPN and TV Everywhere
- Discovery CEO David Zaslav on OWN, Global Growth & Netflix Impact
- National Cable Show: Cloud, Wifi, TV Everywhere Loom Large
- Facebook: Hacking All Night to an IPO
- Why Facebook Is Celebrating Its IPO With a Hackathon
- Inside Facebook's Money Machine
- Sheryl Sandberg: Facebook's Billion-Dollar Woman
- Diablo III Launch Breaks Records and Servers
- Privacy in Focus Ahead of Facebook IPO
More Videos
- Facebook's COO Sheryl Sandberg to Harvard Grads: ‘Can You Click On an Ad or Two’
- NCTA Trends: Mobile video, Watch ESPN and TV Everywhere
- Discovery CEO David Zaslav on OWN, Global Growth & Netflix Impact
- National Cable Show: Cloud, Wifi, TV Everywhere Loom Large
- Facebook: Hacking All Night to an IPO
- Why Facebook Is Celebrating Its IPO With a Hackathon
- Inside Facebook's Money Machine
- Sheryl Sandberg: Facebook's Billion-Dollar Woman
- Diablo III Launch Breaks Records and Servers
- Privacy in Focus Ahead of Facebook IPO
RSS FEED
MOST SHARED
- Zero China Growth Is ‘Probable’: Gordon Chang
- Marc Faber: 100% Chance of Global Recession
- Citigroup Lost $20 Million on Facebook IPO Trades
- China Growth Risks Signal Need for Fiscal Action
- Senate Summons Dimon to 'Get to the Bottom' of JPM Mess
- What College Tuition Will Look Like in 18 Years
- Romney Leads Poll Of Small Business Owners
- Greek Exit Could Trigger 50% Fall in Euro Stocks: Analyst
- Bacon Tourism: From the Davos of Bacon to Bacon Mecca
- A New Look at the ‘New Poor’
- Six Pack: Beer Buzz of the Week
- Greek Exit Could Trigger 50% Fall in Euro Stocks: Analyst
- Under Pressure, FHA Skews to Wealthier Home Buyers
- Big Stock Upside for Hudson City Deal: Analyst
- 5 High-Yield Stocks Ready to Boost Dividends
- Yoshikami: Four Things You Need to Know About Gold Now
- Steinbock: The Euro Zone Endgame Begins
- Option Bulls Take Another Shot on Idenix
- Citigroup Lost $20 Million on Facebook IPO Trades
- Sticker Shock: What College Is Likely to Cost in 18 Years
- JPMorgan to Shake Up Risk Team After Big Loss: Report
- Icahn Raises Stake in Chesapeake, Wants Board Seats
- Marc Faber: Chance of Global Recession Is Now 100%
- Week Ahead: Europe Has Wall Street Bull on Short Leash
- What Happened to Stocks? Most Unloved in 50 Years
- Cool Jobs: From Gold Stacker to Bed Tester
- Many Greeks Moved Their Money Abroad Long Ago
Media Stocks Get "New" Label: Negative
Text Size 
Correspondent
 |
CNBC.com |
Sure, media companies have been distributing digitally for a while, but DiClemente argues that the new model hasn't only marginally cannibalized the old model, and now there's no way the declining DVD (so-called "packaged media") business can be offset by new digital media revenues. The home video business is one in flux for the media giants, and here DiClemente comes out with a negative perspective.
Lehman lowered its rating on Disney [DIS
Loading...
()
] to underweight, raising concerns about the impact of the economy on the theme park business, and challenges to the ABC networks and TV stations. DiClemente also pointing out the premium DIS trades at compared to some of the other media companies. This sent DIS down 2.65 percent Monday. CBS Corp [CBS
Loading...
()
]also got dropped to an underweight, slammed by concerns about radio and TV advertising declines. It also appears that DiClemente is anxious about how CNET might be value-dilutive.
Then there's the analyst's "Equal Weight" companies; DiClemente lowered News Corp's [NWS
Loading...
()
] rating to Equal Weight, dropping its price target from $26 to $15. Here the concern is exposure to the struggling newspaper business as well as the TV industry. Time Warner also got slashed to an Equal Weight. Again, print advertising raised concerns, here with Time Inc. And no surprise considering news surrounding TWX [TWX
Loading...
()
]of late, questions about usage of the Time Warner Cable dividend and the future of AOL raised concerns. He lowered Viacom's [VIA
Loading...
()
] price target from $46 to $32 but maintained its "Equal Weight" rating. Here the company's saving grace are its new Rock Band video game business, the stability affiliate fees provide, and the balance of international expansion.
It's a pretty negative outlook on an industry that's already been beaten down, underperforming the market. He's more negative than most, particularly on Disney, which hasn't *yet* seen the economy negative impact its parks business. But it does raise some very interesting questions, ones I'll be sure to ask the media CEOs at the Allen and Co. conference in Sun Valley this week.
Questions? Comments?
Data is a real-time snapshot *Data is delayed at least 15 minutes
