Disney, DIRECTV, The Blackout, And The Next Phase Of The Pay-TV Revolution

Summary:

  • Disney’s ongoing carriage dispute with DIRECTV highlights a shift in the pay-TV landscape, with both companies fighting over minimum penetration requirements and bundle structures.
  • The dispute could lead to significant revenue losses for Disney, potentially reducing its pay-TV revenue by 15% and severely impacting its net income.
  • Charter and Comcast are better positioned to benefit from any concessions Disney makes, while AT&T’s exposure through DIRECTV is less significant.
  • The revolution in pay-TV is accelerating, driven by streaming services, and Disney may struggle to adapt without substantial financial impacts.
Young man watching soccer game at home

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I’m not surprised it got ugly. I am a little surprised at how fast it got ugly.

For those who haven’t heard, Disney (NYSE:DIS) is in a blackout dispute – again – with a major distributor on the eve of NFL


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