Broadcasting

CBS board changes herald Viacom game of thrones

3 Feb 2016

Sumner Redstone is out as chairman of half his $40 bln empire, with the job going to the CEO. That swaps one kind of poor governance for another but at least Les Moonves has done well for shareholders. A double grip on power at Viacom may not come so easily to Philippe Dauman.

Comcast proves it doesn’t need Time Warner Cable

3 Feb 2016

Not even a year has passed since Brian Roberts’ $45 bln bid for his cable rival blew up. With a 9 pct increase in quarterly revenue and a surprising glimpse of cord-cutting defiance with 89,000 new customers for video, Comcast’s pace is picking up despite industry consolidation.

Twice-jilted Meredith may yet find merger love

27 Jan 2016

The U.S. magazine and TV group lost its $2.4 bln deal with Media General, which has run off with Nexstar. A marriage to Time Inc, planned before Time Warner spun it off, collapsed earlier. It has been solo for nearly two years, so there’s a chance to rekindle the relationship.

Viacom CEO’s pay thumbs nose at shareholder value

25 Jan 2016

Philippe Dauman took a 30 pct bonus cut last year as the media company struggled. But the stock he got to renew his contract more than made up for it. With revenue, earnings and shares all falling, his comp is an apt example of the tin-eared nature of Sumner Redstone’s empire.

Time Warner breakup has gone far enough

21 Jan 2016

Boss Jeff Bewkes has dismantled the media conglomerate, spinning off AOL, Time Warner Cable and Time Inc. Shrinking further by, say, separating HBO lacks a compelling financial rationale. The real question is when Time Warner will again attract a suitor.

Viacom activism is smarter than it looks

19 Jan 2016

Another unhappy shareholder wants a governance revamp at the $16 bln U.S. media company. With Sumner Redstone controlling 80 pct of the vote, Eric Jackson’s campaign seems quixotic. But Redstone won’t be around forever, and even modest change now could get the ball rolling.

Al Jazeera floored by oil, ratings double-whammy

13 Jan 2016

The broadcaster is shutting its U.S. cable news unit three years after paying $500 mln for a network. High-profile lawsuits added to viewer skepticism and low ad revenue. But the sharp drop in the oil price may have been the final straw for its Qatar government backers.

Hulu deal would broadcast mixed signal

13 Nov 2015

Time Warner may buy into the U.S. video-streaming service already backed by Comcast, Disney and Fox. Though the implied value is bound to be far less, Hulu could be worth some $17 bln, according to Breakingviews calculations. The ownership structure warrants a big discount.

Couch-sports on TV could be whole new ball game

12 Oct 2015

U.S. cable network TBS is starting a competitive videogame league with talent agent William Morris in a bid to build on the power of live programs. With online viewership for “League of Legends” battles already on a par with events like soccer’s World Cup, it may be a big score.

BBC embraces life as a servant of the people

7 Sep 2015

The UK’s world-renowned broadcaster may use its state funding to help local newspaper groups report public-interest news. Dry coverage of municipal minutiae won’t reinvigorate the media sector. But using the state-backed BBC to ease an apparent case of market failure makes sense.

Europe’s trustbusters threaten to upend Hollywood

10 Aug 2015

Big filmmakers may be failing to give European pay-TV subscribers fair access to their content, says the EU. If the charges stick, movie studios may lose pricing power. And Tinseltown could be obliged to rethink production values in light of likely lower revenue. 

TV upstart fine-tunes Supreme Court signal

22 Jul 2015

Like defunct Aereo, FilmOn violates copyright as a streaming service. U.S. justices hinted that such firms could run as cable operators, and a judge has agreed. While Fox and NBC protest, investors and viewers may reward the startup for beaming itself through legal loopholes.

AT&T’s DirecTV deal heaps more trouble on Dish

22 Jul 2015

U.S. regulators are set to approve the $48 bln merger, giving Charlie Ergen’s satellite firm one more headache. Dish lacks a clear strategy for new spectrum and faces a costly suit from nemesis Harbinger. Unless it can find a partner, the company may end up with industry scraps.

Sky’s insecurity helps Premier League net $8 bln

10 Feb 2015

The pay-TV giant is spending 83 pct more than its last deal to retain most of England’s top-flight soccer. Sky can make the sums add up. But runner-up BT is a real threat. And Sky can’t afford to test what losing its football dominance would mean. The big winners are the clubs.

Sky Europe transforms BSkyB investment case

25 Jul 2014

The UK satellite group is paying its 39 pct shareholder Fox 4.9 bln stg for sister Sky outfits in Germany and Italy. The businesses are close already and the price looks reasonable. Sky Europe promises scale, growth, and cost savings. But leverage will soar and cash returns shrivel.

Murdoch’s $14 bln plan is new test for BSkyB board

12 May 2014

There would be logic to BSkyB buying sister outfits in Germany and Italy from part-owner Rupert Murdoch. The UK pay-TV group’s outside directors, who dealt with a buyout bid from the mogul in 2010, need to ensure any deal is fair. And Sky must keep its eye on the ball at home.

Viacom’s UK deal broadcasts hope for old-time TV

2 May 2014

Sumner Redstone’s media giant will pay $757 mln for Britain’s Channel 5. That looks rich for a shoestring free-to-air station known for reality shows and programme imports. But Viacom gets a decent platform for overseas growth. And old-school TV is a show with much further to run.

ITV’s makeover programme begins a tougher episode

26 Feb 2014

Full-year results show the television network’s revival since 2010. It makes more shows, relies less on ads and has less debt. Britain’s recovery has helped advertising sales rebound too. Yet the stock is pricey and ITV’s remaining turnaround goals look harder to achieve. 

TV industry technophobia is a bad 1980s rerun

20 Nov 2013

U.S. broadcasters have won support from sports leagues in their bid to shut down online video startup Aereo. The doomsday arguments echo those used 30 years ago in an attempt to block the VCR, after which business boomed. For a creative trade, Big Media sure lacks imagination.

BSkyB ably defends its turf against BT incursion

17 Oct 2013

The broadcaster’s first results since the telco moved into live sport showed strong sales and subscriber growth. BSkyB shares hit a 12-year high on relief it can handle this threat. Yet there are further technological and cost challenges ahead. The stock looks fully priced.