3 Media Stocks in Focus: Disney/Hulu Land BBC Deal, Dish Faces ‘Cord Nevers,’ Data Bode Well for Netflix
Walt Disney Co. (NYSE:DIS): Disney child Hulu has cut its largest content deal to date, with the addition of 144 new titles from the BBC. Hulu, the ownership of which Disney splits with Comcast (NASDAQ:CMCSA) and 21st Century Fox (NASDAQ:FOXA), wants to increase its original programming to 10 percent to 15 percent of its content in the next few years.
Dish Network (NASDAQ:DISH): Cable providers like Dish and DirecTV (NASDAQ:DTV) could be at risk thanks to a new generation of consumers unwilling to pay premium prices for TV packages, analysts surmise. ”Cord nevers,” as they have been nicknamed, have forced many traditional broadcasters and providers to question how long the conventional TV model will last, as Internet TV players could try to accelerate the shakeup through further innovation.
Netflix (NASDAQ:NFLX): Roughly 38 percent of Americans are subscribed to Netflix, according to the latest Nielsen data. This is a 7 percentage-point gain over last year, though the gains have been industrywide: Amazon Instant (NASDAQ:AMZN) and Hulu subscriber bases have seen similar increases in subscriber base growth. The new data directly reinforce the troubles Dish and DirecTV are facing in addition to the generation of cord nevers.