Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nasdaq  >  Netflix, Inc.    NFLX

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

CBS, Time Warner Cable duke it out over deal as TV industry faces challenges

share with twitter share with LinkedIn share with facebook
share via e-mail
0
07/24/2013 | 02:16am CEST

The CBS broadcast network and Time Warner Cable, which are battling over the fees the cable company pays to carry CBS, have taken their fight public in advertising that risks turning off the very consumers they need to grow their businesses.

If they do not reach a new deal by Thursday, CBS would go dark in markets like Los Angeles and New York, depriving viewers of summer shows such as "Under the Dome" and "Big Brother."

This would add to the challenges that cable companies and traditional broadcasters already face from competitors such as Netflix that are making inroads with viewers who can opt to watch shows online instead of paying for cable subscriptions.

Netflix said on Monday that it had added 630,000 U.S. streaming video customers in the second quarter of this year.

Cable companies have not yet released quarterly financial results but the top nine cable operators lost about 264,000 video subscribers in the first quarter, according to Bruce Leichtman, president of Leichtman Research Group, which tracks cable and broadband subscribers.

In TV commercials airing in some U.S. markets, Time Warner Cable accuses CBS of giving New York a "black eye" while CBS tells consumers in its own spot to "say no to Time Warner Cable."

"Anytime you have arguments that result in blackouts, that is negative for the industry," said Gabelli & Co analyst Brett Harriss. "It's negative for both CBS and Time Warner Cable."

CBS and Time Warner Cable will eventually settle, as cable operators and media companies always do out of necessity. Cable operators need someone to cover the hefty cost of making TV shows they air and media companies like CBS need the fees they get from cable companies.

Consumers being bombarded by the marketing campaign know how it will end: they will pay higher subscriber rates to the cable operator to carry CBS.

"It's not smart to be rubbing consumers' noses in how much we pay for something, especially if it's something that could go away," said Wedbush Securities analyst Michael Pachter.

The industry is mature and not growing. Today, there are 100 million customers paying for television subscriptions through cable, satellite and telecom companies, according to cable research firm SNL Kagan. That number has been about flat since 2011.

Craig Moffett, an analyst at Moffett Research, estimates that about 2 million households have cut the cord, or cancelled their video cable service, since 2010.

CBS is also facing challenges to its business model. It is suing Aereo, the Internet TV service backed by veteran media executive Barry Diller, for not paying for its broadcast signal. It is also in court against satellite operator Dish Network, whose Hopper digital video recorder automatically skips over commercials.

CBS Chief Executive Leslie Moonves, a former actor, is one of the media business' toughest negotiators and is playing hardball with Time Warner Cable.

"If on Thursday our content has been pulled off their service, you'll know that we are in the midst of a crucial struggle we intend to bring to a satisfactory conclusion," he told CBS staffers in a memo.

Time Warner had already encouraged viewers to subscribe to Aereo to access CBS and other channels for a fee of $8 a month, none of which goes to CBS.

"Is it really a good idea to intentionally drive customers to Aereo? What if they liked it too much?" Moffett said.

TV viewers are already all too familiar with blackouts. Last year alone, there were 91 blackouts, up from 51 in 2011 and 12 the year before, according to the American Television Alliance, which tracks these disputes.

While there is no evidence that blackouts encourage TV viewers to cancel cable subscriptions, there are hints of the damage that can be caused by a blackout of channels. Last summer, satellite operator DirecTV said its churn, or rate of cancellations, increased when Viacom's networks including Nickelodeon and MTV went dark for 10 days.

Christina Wong, a 31-year-old Los Angeles resident who works in public relations, said she dropped her cable subscription five years ago and blackouts are among the reasons she would not renew it.

"Hearing about all these fights is just bad publicity," said Wong. "If that was something I'd be paying for, I'd be very angry."

(Reporting by Liana B. Baker; Editing by Ron Grover, Toni Reinhold)

By Liana B. Baker

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on NETFLIX, INC.
03/24 Levi & Korsinsky, LLP Reminds Shareholders of Netflix, Inc. of Commencement o..
03/24 NETFLIX, INC. : Levi & Korsinsky, LLP Reminds Shareholders of Netflix, Inc. of C..
03/23 WHEN YOUR FAVORITE TV SHOWS RETURN : 'Master of None,' 'Broad City,' other new s..
03/22 NETFLIX : Here's What's Coming to Netflix in April 2017
03/21 Brower Piven Encourages Shareholders Who Have Losses In Excess Of $100,000 Fr..
03/21 Mediaset's dispute with Vivendi escalates on first day in court
03/21 NETFLIX : Chappelle celebrates Netflix release with all-star party
03/21 NETFLIX : 451 Research Survey Finds Original Content Investment Paying off for N..
03/20 Lundin Law PC Announces Securities Class Action Lawsuit against Netflix, Inc...
03/20 NETFLIX, INC. : SHAREHOLDER ALERT - Bronstein, Gewirtz & Grossman, LLC Notifies ..
More news
Sector news : Internet Services - NEC
03/25DJALPHABET : Uber Suspends Self-Driving Vehicle Program After Accident -- Update
03/25DJFACEBOOK : EU Taking Second Look at Past Deals -- WSJ
03/24DJALPHABET : YouTube Continues Showing Brands' Ads With Objectionable Videos -- Up..
03/24DJFACEBOOK : EU Antitrust Chief Says Handful of Companies May Have Misled Regulato..
03/24 Infineon raises 2017 outlook on stronger automotive orders
More sector news : Internet Services - NEC
News from SeekingAlpha
09:45a Hollywood set to further upend its business
03/24 Netflix To Decline By Over 92% - Sell Now
03/24 STOCK EXCHANGE : Does Headline Risk Make Trading Unsafe?
03/23 Why Netflix's Business Model Continues To Matter
03/22 Tesla Energy Will Make Billions Off The Cloud
Advertisement
Financials ($)
Sales 2017 11 230 M
EBIT 2017 816 M
Net income 2017 468 M
Debt 2017 3 418 M
Yield 2017 -
P/E ratio 2017 131,28
P/E ratio 2018 71,43
EV / Sales 2017 5,75x
EV / Sales 2018 4,86x
Capitalization 61 127 M
More Financials
Chart NETFLIX, INC.
Duration : Period :
Netflix, Inc. Technical Analysis Chart | NFLX | US64110L1061 | 4-Traders
Full-screen chart
Technical analysis trends NETFLIX, INC.
Short TermMid-TermLong Term
TrendsNeutralBullishBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 42
Average target price 152 $
Spread / Average Target 6,8%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Wilmot Reed Hastings Chairman, President & Chief Executive Officer
David B. Wells Chief Financial Officer
Jay C. Hoag Lead Independent Director
Richard N. Barton Independent Director
Timothy M. Haley Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
NETFLIX, INC.14.72%61 127
NASPERS LIMITED9.42%78 524
WEIBO CORP (ADR)22.61%10 589
LESHI INTERNET INFRMTN..--.--%9 141
IAC/INTERACTIVECORP12.27%5 768
58.COM INC (ADR)33.25%5 404
More Results