Media stocks, which were hit hard last year by cord cutting, appear to be in for another rough go. Fierce Cable reports that subscriber metrics for the second quarter are “shaping up to look even worse than [the] epic 2015 meltdown that sent media and operators stocks cratering.”
The report, which cites Bernstein Research, notes that five of the top six pay-TV platforms have reported Q2 results.
“So far, with Comcast (NASDAQ: CMCSA), Verizon (NYSE: VZ), Dish Network and AT&T (DirecTV and U-verse) reporting earnings, pay-TV has lost 375,000 subscribers,” Fierce Cable reports. “During the second quarter of 2015, these five leading platforms collectively posted losses of 279,000 customers.”
The second quarter of 2015 wound up being the worst period in history for subscriber metrics, with a total loss of 625,000 customers in the pay-TV sector, the report notes. Q2 is traditionally a challenging one for the sector.
In a note to investors Wednesday, Bernstein Research analyst Todd Juenger wrote: “Frankly, we are shocked the media stocks haven’t already reacted more negatively.”
Fierce Cable adds, though: “The bright side: Charter Communications (NASDAQ: CHTR), which will now encompass metrics for the newly acquired Time Warner Cable and Bright House Networks, is expected to post strong customer numbers when it reports earnings on August 9.”