A Macquarie analyst sees Hollywood studios that rely on advertising facing mounting challenges from marketers trimming budgets and elusive streaming profitability.
The media analyst sees Disney’s stock recovering if newly reinstalled CEO Bob Iger makes good on his profitability plan for Disney+ and the studio’s other streaming platforms. And those plans may involve Disney+ with ads as a new revenue stream.
The Macquarie analyst also cited current ad revenue declines due to the impact of a recession and inflation stretching into 2023 to cut Warner Bros. Discovery price target to $16, from $18, while maintaining an “outperform” rating. “The problem is the NBA is likely to demand significant price increases above the $2.6bn annually it gets from ESPN/ABC and TNT … It would not be at all surprising to see the league demand at least a 2x price increase, as the NFL did in its renewal beginning in 2023. And – surprisingly – we calculate WBD can handle this,” Nollen wrote. Stock in Warner Bros. Discovery rose by 45 cents, or nearly 5 percent, to $10.00 in early morning trading.
“Fox’s dependence on the pay TV bundle has long concerned us, warranting a discounted valuation to peers,” Nollen wrote of Fox’s high revenue exposure to advertising amid any economic downturn. Shares in Fox Corp. were slightly off 11 cents to $30.38 in early morning trading.to $15 from $16, on continuing ad market declines, while retaining a “neutral” rating.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
James Gunn Appreciates Animation, Why Can't Warner Bros. Discovery?ICYMI: JamesGunn's belief in the role of animation at DCStudios doesn't seem to mesh too well with what WarnerBrosDiscovery has been up to. Opinion / WBD DCU PeterSafran HBOMax LooneyTunes Batman BatmanCapedCrusader
Read more »
Looney Tunes/Warner Bros. Discovery: Shorts Returning to HBO MaxICYMI: It looks like we might just have a happy ending to yesterday's news that WarnerBrosDiscovery pulled 250+ LooneyTunes shorts from HBOMax. / WBD BugsBunny DaffyDuck
Read more »
Warner Bros Discovery Signs Deal With Measurement Firm VideoAmp As Industry Continues To Explore Nielsen AlternativesWarner Bros Discovery has enlisted measurement firm VideoAmp to track ad campaigns across screens for the company’s network and brand portfolio, which spans sports, news, lifestyle and entert…
Read more »
Warner Bros. Discovery signs audience measurement deal with startup Nielsen rival VideoAmpWarner Bros. Discovery has agreed to use measurement platform VideoAmp ahead of the 2023 upfronts.
Read more »
Tribeca Enterprises Names Warner Bros Discovery Veteran Christopher Brady To Newly Created Chief Revenue Officer PostTribeca Enterprises has named Warner Bros Discovery veteran Christopher Brady to thenewly created position of Chief Revenue Officer. Along with that exec news, the organization also said it is expa…
Read more »
Former Warner Bros. Discovery SVP Christopher Brady Joins Tribeca EnterprisesThe staff of Tribeca Enterprises, creator of the Tribeca Festival, has grown close to 20 percent in 2022.
Read more »