It’s no secret that cable television has been facing many challenges with the rise of streaming services. Netflix and Amazon Prime have dealt the major networks a serious blow with their own content and competitive pricing. Now it seems that the pressure is on the network ownership. Reuters reports:
Walt Disney Co (DIS.N) has threatened to pull its programming from the fourth largest U.S. cable distributor, Altice USA, if the two parties cannot reach a deal before the end of the month, the cable company said on Sunday. New York-based Altice (ATUS.N), which is owned by a European conglomerate and is better known as Optimum, said Disney had asked it for “hundreds of millions of dollars” in new fees to be able to continue carrying ESPN and ABC, even as ratings suffer.
The situation could prove disastrous for Altice. They are now caught between a rock and a hard place; losing two of their major networks or paying significantly higher fees. Both scenarios could have an adverse affect on their stock price, so be sure to check your portfolio and monitor your risk.
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