Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

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

Delayed Quote. Delayed  - 07/22 10:00:00 pm
85.89 USD   -0.12%
07/22 NETFLIX : Showmax Sees Potential for Growth
07/22 NETFLIX : 'Daredevil' Season 3 renewal announced; 'Defenders,' 'Iron..
07/22 AT&T adjusted profit meets estimates, TV subscribers drop
News SummaryMost relevantAll newsSector news 

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
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
Latest news on NETFLIX, INC.
07/22 NETFLIX : Showmax Sees Potential for Growth
07/22 NETFLIX : 'Daredevil' Season 3 renewal announced; 'Defenders,' 'Iron Fist,' 'Luk..
07/22 AT&T adjusted profit meets estimates, TV subscribers drop
07/20 BRIEF : 'Stranger Things' composers have a band and they're releasing new music ..
07/20DJMARKET SNAPSHOT : Dow Eyes 7th Straight Closing High As Tech Rallies
07/20 NETFLIX : Adam Sandler and Jennifer Hudson to star in Netflix's rom com 'Sandy ...
07/19 PHILIP MORRIS : Netflix and Philip Morris stumble; VMware and Lockheed climb
07/19 NETFLIX : Management's Discussion and Analysis of Financial Condition and Result..
07/19 NETFLIX : 'Making a Murderer' will return, with more episodes about Steven Avery..
07/19 Stocks dip on earnings and growth worries; dollar rises
More news
Sector news : Internet Services - NEC
08:49aDJVerizon Near $5 Billion Deal To Buy Yahoo's Web Assets -- WSJ
05:16a Silicon Valley leads avalanche of quarterly reports
03:51aDJSalesforce Would Have Bid 'Much Higher' for LinkedIn
07/22 S&P 500 companies start facing up to the potential Brexit costs
07/22DJPayPal Shares Slide on Visa Deal
More sector news : Internet Services - NEC
News from SeekingAlpha
07/22 6 Points To Consider In Today's Market
07/21 Why Shareholder Activists Have The Upper Hand
07/21 Tesla Shareholders Should Learn From Netflix
07/20 The Virtuous Cycle Is Out Of Order For Netflix
07/20 A New Apple Partnership?
Financials ($)
Sales 2016 8 731 M
EBIT 2016 261 M
Net income 2016 123 M
Debt 2016 1 083 M
Yield 2016 -
P/E ratio 2016 303,39
P/E ratio 2017 95,47
EV / Sales 2016 4,34x
EV / Sales 2017 3,59x
Capitalization 36 823 M
More Financials
Duration : Period :
Netflix, Inc. Technical Analysis Chart | NFLX | US64110L1061 | 4-Traders
Full-screen chart
Technical analysis trends NETFLIX, INC.
Short TermMid-TermLong Term
Technical analysis
Income Statement Evolution
More Financials
Mean consensus OUTPERFORM
Number of Analysts 41
Average target price 106 $
Spread / Average Target 24%
Consensus details
EPS Revisions
More Estimates Revisions
Wilmot Reed Hastings Chairman, President & Chief Executive Officer
David B. Wells Chief Financial Officer
Jay C. Hoag Lead Independent Director
Rich N. Barton Independent Director
Timothy M. Haley Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
NETFLIX, INC.-24.91%36 823
LESHI INTERNET INFO. &..--.--%13 977
WEIBO CORP (ADR)70.77%7 084
58.COM INC (ADR)-25.39%6 970
KAKAO CORP--.--%5 501
More Results