Viacom corporate crisis weighs on confidence

Moody’s has said the outlook for Viacom is now negative, citing weak results and an “unprecedented corporate governance crisis”. The influential credit ratings agency further warned that the media giant’s rating could be downgraded if the decline in its performance is not arrested, and the company continues to make “ill afforded dividend payments in the […]

TV business needs ‘total overhaul’ to combat Netflix

Traditional content creators and channels need to totally overhaul their businesses if they want to effectively combat Netflix and the other disrupters in the market, according to new research. Credit ratings agency Moody’s says the era of pay TV being the “most stable, predictable and highest-margin segments of the US media industry is rapidly eroding”. […]

Analysts downgrade BSkyB on Sky Europe fears

Credit analysts have downgraded BSkyB after the UK pay TV platform moved a step closer to creating a UK-Italian-German giant, Sky Europe. BSkyB recently received acceptances to take a majority stake in Sky Deutschland, leaving it with 87.5% of the German pay TV platform. With full control of Sky Italia in Italy, BSkyB will then […]

Google, Apple ‘could beat Fox to Time Warner’

Tech giants Google and Apple could try to grab Time Warner from under the nose of 21st Century Fox, according to corporate finance group Moody’s. Fox’s US$80 billion bid for Time Warner could “prompt other offers, even from technology giants such as Google, whose chairman is Eric Schmidt [pictured] and Apple”, Moody’s suggested. The fact […]

Aereo ruling ‘will not end tech threat to broadcasters’

“Disruptive” business models of emerging tech firms still threaten broadcasters, despite the US networks’ legal victory over streaming service Aereo, financial analyst Moody’s says. The US broadcasters scored a decisive win at the Supreme Court this week, with a majority decision agreeing Aereo was illegally profiting from retransmitted network signals via the internet. This effectively […]

Analysts expect 21st Century Fox acquisitions

Financial analysts are tipping 21st Century Fox to use its strong financial position to make “moderate sized” acquisitions and increase dividend payments to shareholders. Credit ratings agency Moody’s noted that following the company’s investor days investors were concerned about the amount of debt 21st Century Fox had relative to its earnings. However, Moody’s said the […]

Viacom not investing enough in content, says Moody’s

Moody’s has issued a report criticising media giant Viacom and downgraded its credit rating. The credit ratings agency said that it views the media giant’s decision to accelerate a share repurchase scheme a direct result of slowing revenue growth and noted it “appears to be a one-time effort to smooth over the anemic growth by […]

Analysts cool on Vodafone’s ‘risky’ Kabel Deutschland deal

Moody’s has said that the benefits to Vodafone of acquiring Kabel Deutschland could be outweighed by the associated financial risks. UK telco Vodafone beat Liberty Global to German MSO KDG in a €7.7 billion (US$10.1 billion) deal announced earlier this week. The agreement still needs clearance from the European Commission, but is expected to close […]

Analysts positive on Netflix’s new ‘selective’ content strategy

Moody’s says Netflix is successfully managing the risk of increased programming costs with a more selective approach to acquiring content. The influential credit ratings agency issued a report on Netflix in the wake of the US-listed streaming service announcing its largest ever original content deal, with DreamWorks, which spans 300 hours of new kids and […]

Netflix tipped to add up to 5m subs this year

Netflix will add four to five million new domestic streaming subscribers this year, taking the total to a potential 34 million, according to new research. Influential credit ratings agency Moody’s noted: “While the first quarter is typically a strong quarter for the company and we don’t expect such levels of growth to continue into the […]