Internet television company Netflix continues to post strong subscriber growth numbers, with its share price up 1.41% from the day before, taking the company’s closing price to US$89.12 on May 16, 2016 with a market cap of US$39.31 billion. As the stream of disappointing news continues to unfold, including disappointing financial results and viewers flocking to online streaming options, TV advertising is on a decline and affiliate fees from pay-TV providers are increasingly at risk. Many media stocks are now struggling to stay afloat.
The share prices of the nine leading listed media companies by revenue declined by an average of 19% from May 18, 2015, to May 16, 2016. Time Warner ended the period with a decline of14.3% on May 16, 2016 from a year earlier. Twenty-First Century Fox’s stock fell 14.1% to end at US$28.93. During the period, these companies together with other media companies around the country have wiped billions off the market value. #MergentInc #industryreports #media