Netflix shares cooled down Tuesday, slipping 2% to about $517, after UBS downgraded the stock to “neutral” from “buy” on concerns about difficult subscriber comparisons in upcoming quarters.
Since internet-TV packages have begun to heat up in earnest, a question has hung in the air: Are they cannibals? Will these packages hurt their traditional counterparts, sometimes offered by the same company, by cannibalizing their customers. In short: Will people who have a $100-a-month DirecTV package right now trade it down for something smaller and digital? In a new report from UBS analysts led by John Hodulik, the answer seems to be “yes.”
CBS isn’t giving up on the broadcasting business anytime soon. But that isn’t stopping the company from preparing for a future without over-the-air TV. “We are ready for the eventuality of whatever comes down the pipe,” CBS CEO Les Moonves said at the UBS Media & Telecommunications Conference Tuesday afternoon. “We believe in broadcast, we believe in digital, we are ready for everything.”
Mark Cuban predicts success of Netflix and others will be short-lived as pay TV providers expand offers.
Speaking at UBS’s 38th annual global media and communications conference in New York, CBS Chief Research Officer David Poltrack said that network television advertising revenues are up 6.2% in 2010, up from his previous forecast of 5%.