Credit Suisse downgrades old guard media companies, sees pay TV decline, rise of streaming services

Apple Online Store“Credit Suisse has downgraded a number of media company stocks, including those from Disney, Time Warner, Viacom, and News Corp. over concerns that cable and satellite–‘pay TV’–subscriber numbers will drop as we see a rise in more affordable streaming services from Apple, Google, and Netflix,” ubergizmo reports.

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“Credit Suisse is also upgrading its estimates for Netflix’s stock price,” ubergizmo reports. “According to CNET, Credit Suisse finds that nearly 30 percent of Netflix subscribers between the ages of 25 and 34 are watching Netflix exclusively [instead of] pay TV and that 17 percent of overall Netflix users have dropped pay TV all together.”

Full article here.

26 Comments

  1. I don’t see an al a carte approach to TV programming being implemented anytime soon. The content providers like the status quo and are terrified of the potential long term consequences of al a carte anarchy.

    Speaking theoretically at this point, if widespread al a carte TV programming has a similar result to that of al a carte music purchases, such as those offered by iTunes, then the popular (not necessarily “good”) content will flourish and the rest will find the going tough. It may also lower the barrier to entry for new, indie programming. But don’t be surprised when al a carte prices increase to compensate for this social shift. The content providers will be reluctant to compromise on the top or bottom lines.

    Unfortunately, the al a carte approach may (will?) involve negative consequences for high quality niche programming.

  2. Every station on the planet needs to create an h.264 live feed and beam it to apple.

    You can do this with an iPhone for gods sake!

    Apple would/could/can create a monster hub – oh wait there is Akamai… ” width=”19″ height=”19″ alt=”smile” style=”border:0;” />

    Charge me .10 a day for every channel I watch. Charge me .25 for each show I decide to rewatch or dvr…

    All the pieces are in place.. It’s just a matter of time.

    Look how long it took the mobile market to kill themselves with android? Less than a year…. It’s a mess and will crash just like the sub-prime bubble. It cannot support the fragmentation in it’s current form. And I don’t see it changing soon.

    Don’t producers get it that they need advertising to pay for AIR TIME.. Apple will pay that tab – sort of.

    Do it like the world cup.. Small floating logo or cool iAd widget that is not in your face.

    If I ran a niche network like Bravo that’s what I would do..

  3. Netflix is really working out well for our home.

    Got one of those $99 Roku devices awhile back (before Apple’s clone came) and pretty much been doing fine catching up on everything we missed. Got a $10 HDMI cable on line too.

    The high speed cable needed is costing $60 a month, plus the $15 or so for the Netflix, but two movies a day, several TV shows, it’s working out to be a great value at about $2 a day.

    Of course some of the stuff is only available on DVD, so we go through two dvd’s a week on average also.

    Netflix gives Apple something they can’t get for themselves, neutrality. With Steve Jobs owning most of Disney/ABC stock it’s a problem for Warner and other content creators to jump on the iTunes rental bandwagon.

    So Apple is allowing Netflix on their device to try to shut other low end Netflix streaming devices out, so as time goes by and a substantial customer base is established, that Apple is hoping content creators will shift less of their material to the low end Netflix and rather take a stab at pay per view in iTMS.

    Then like the music labels and hold out artists, they will eventually have to come to Apple’s door.

  4. Since we got Netflix I don’t see my family anymore. They are all squirreled away with laptops, the Wii, or the iPod watching Netflix fare. It is an awesome service for $9.99 per month.(That doesn’t mean I don’t want to see my family ;-D)

  5. @ Bizzarro
    “Of course some of the stuff is only available on DVD, so we go through two dvd’s a week on average also.”

    I go through as many as they’ll ship me. I get them, rip them, and send them right back. Watch at my leisure via AirVideo. I’m building up quite a collection.

  6. I think once more networks get on board and the 3rd gen aTV comes along we will start to see the slow painful death of cable/satlitte companies. I know personally I would rather only pay for the channels/shows I watch rather than pay for 100+ channels. Who honestly watches the horse racing channel or NASA. Also if I wanna listen to music, I’ll turn on my radio or MacBook!! Just my 0.02.

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