🌟 [ 51 ] Disney vs. Charter: Cable companies may feel emboldened, analyst says [ @Yahoo Finance ]
If you are a customer of Charter s Spectrum (CHTR), you won t be finding Disney-owned channels (DIS) in your cable lineup. Disney pulled its channels from Spectrum amid a carriage dispute between the two companies. Goldman Sachs Managing Director Brett Feldman says there are two reasons why this dispute is happening. First with the decline in cable subscribers is accelerating, falling about 6% to 7% this year. Feldman says that s interesting because, historically, media companies have been able to raise the prices of their channels by about 5% to 6% a year. We ve hit this tipping point now where the media companies simply can t raise prices fast enough to offset the loss of paid TV subscribers, Feldman says, going on to say that it has emboldened cable companies to start discussing the possibility of a new model. The second thing is that the cable companies have reached the point of economic indifference, Feldman says. What that means is that given how much cord-cutting is happening, Charter is losing so much profitability in that business and basically what they re saying is we almost don t care anymore whether our customers decide to pay for a channel package or not, Feldman says, adding that they are primarily making their money by providing internet service. Click here for more of Yahoo Finance s coverage from the Goldman Sachs Communacopia tech conference. #yahoofinance #youtube #Disney Subscribe to Yahoo Finance: [ 🔗 Click ‼️ ] About Yahoo Finance: At Yahoo Finance, you get free stock quotes, up-to-date news, portfolio management resources, international market data, social interaction and mortgage rates that help you manage your financial life. Yahoo Finance Plus: With a subscription to Yahoo Finance Plus get the tools you need to invest with confidence. Discover new opportunities with expert research and investment ideas backed by technical and fundamental analysis. Optimize your trades with advanced portfolio insights, fundame .
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