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Reaction to Disney subscriber losses overdone: Analyst

Wednesday, August 05, 2015 - 03:25

S&P Capital IQ's Tuna Amobi says investor reaction to comments made by Walt Disney on subscriber losses at ESPN are overdone.

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Shares of too big media means getting clobbered today I'm joined by two of them will be at S&P capsule IQ you know thanks so much for joining me. Let's start with Time Warner are pretty strong performance there in the second what's up but the stock taking a hit cities to out about that percent. That's right by the results were better than expected and I think the main concern for Time Warner you know we saw costs related to HBO street mean launch and that I think that's that was the main. That was the main negative factor in the in the results on and on foreign exchange headwinds but the company did yet there every app from the outlook for the full year. So we reiterate our buy recommendation on shares of Time Warner now. Impact that Disney may be having on time shares and in. As far as the comments fourth outlook cable business. That's right I think those two aren't some on the premium content providers out there and immediate space so to some extent you're absolutely right I think these these comments may be having an impact. On time wanna but overall I think put companies are unique in their own way with some really major aspects. And ultimately acting there well positioned to Bennett feet from the con and ecosystem that remains very vibrant. Let's have access comments. Coming at Disney. On its outlook for its cable business what does this mean for the industry as a whole anything. Not to tell you that car that little by surprise but upon further analyses we think that the comment that he made. From me relating to a subscriber losses that yes B and foreign exchange had wings you know we think that you know there comes times are over done frankly we think yes paean remains a very unique asset. There's no that we don't think there's any possibility that yet paean will be. DC intern meet you turn mediated by online media platforms and all of these new options out there. Which seems to be the concern that some investors have been asked to be subscriber losses. All right now I'd tie one has really been trying to. RV model its business to get a big issue of the figures treatment market as consumers shift online you know teaming up with Hulu launching. Agent and now it's standalone streaming service should Disney be following suit here. Well did they'd been very quiet about that plan but we think ultimately that's where the industry is headed to. We see now more viewing occur on you know new media platforms granted traditional television is the majority of the viewing. I think content providers as well as distributors understand that that's the wave of the future that's why you're seeing a lot of you know launches upstream mean. Offerings by content providers and distributors because no one wants to be left out of this this trend which is being cost by. Part Qaeda and has more more consumers dropped. Pricey television packages. All right and soon you still think both stocks are I. That's right web buy recommendations on books shares did valuations I don't think our our relatively does not cheap at this point but. If you look at what lies ahead and the potential growth of side. From you know digital as well as international markets. You know we think both companies Time Warner and Disney will continue to have for their upside when all is said and done. Are right they have a thank you so much for joining CNN that's Tim will be up at MP capital IQ. I'll believe it Duncan and this is Reuters.

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Reaction to Disney subscriber losses overdone: Analyst

Wednesday, August 05, 2015 - 03:25