The cable network industry is undergoing considerable consolidation as media conglomerates like AT&T Inc. and Walt Disney Co. are on a mission to build out direct to consumer offerings and advertising capabilities to rival juggernauts Google and Facebook. Meanwhile, cord cutting and shaving continues to plague the bottom line with multichannel subscriber trends negatively impacting cash flow margins for many networks.

Join Kagan, a research division within S&P Global Market Intelligence, as we host a complimentary, 30-minute webinar, discussing the major trends in the U.S. and European cable network sector.

Agenda

Industry consolidation (Discovery & Scripps, AT&T & Turner, HSN & QVC, Disney & FOX)

• This has led to higher network valuations since the closures of Al Jazeera, Pivot, CLOO and Chiller
  
• Disney needs to divest 22 RSNs from FOX that were purchased at high cash flow multiple

Cord cutting and shaving

• Multichannel subs continue to fall
  
• Virtual MVPDs expected to grow in popularity, but not all networks will be included in those services
  

U.S. license fees continue to rise to offset subscriber declines and dips in ad revenue.

• Tougher prospects in Europe as operators push for more original and VOD content. 
  
• More competition in the content space from new entrants (Netflix, Amazon, Hulu, Apple, etc.)
  
• Sports rights: U.S. ‘big four’ leagues climb higher, but cooling valuations in Europe for domestic soccer.