Disney, U.S. Media Stocks Collapse Amid Digital Disruption Fears
Bob Iger touting Walt Disney's direct-to-consumer offering did little to quell investor fears cord-cutting will crush profits.
Shares of top Hollywood media stocks on Thursday fell yet again in value on a new wave of concern Americans will cancel their cable TV services amid continuing digital disruption.
Shares in Walt Disney fell by $4.44, or 4.4 percent, to $97.06 on the New York Stock Exchange, even as The Walt Disney Company CEO Bob Iger earlier in the day touted his studio's upcoming Disney-branded app to include Star Wars and Marvel movies.
Rival Viacom saw its stock price tumble on the NASDAQ Exchange by $1.02, or 3.6 percent, to $27.20. Comcast stock was down $2.57, or just over 6 percent, to $38.60, while shares in Twentieth Century Fox fell 59 cents, or 2.23 percent, to $25.38 at the market close.
With analysts warning new digital platforms like Netflix and Hulu are undercutting broadcast profits, Charter Communications was also caught up in the market downdraft, as its shares fell $6.86, or 1.7 percent to $395.64. AT&T, which has DirecTV, saw its stock fall 97 cents, or 2.6 percent, to $35.60.
That's even though U.S. telco giants consistently argue they are replacing lost cable subscribers with new internet customers. Hollywood conglomerates are also attempting to offset customers who cut the cord by selling content to emerging streaming services.