Disney's New Distribution Agreement - Analyst Blog

By
A A A

The Walt Disney Company ( DIS ) announced a new long-term content distribution agreement with Charter Communications Inc . ( CHTR ), whereby the latter will deliver Disney's popular programs to Charter TV customers. 

Subscribers of Charter TV can watch live or on-demand content 70 Disney, ABC, and ESPN services on their TV sets, PCs, smartphones, gaming consoles and tablets. Although, the financial terms of the deal are not disclosed, the renewal agreement is expected to benefit both companies over the long term and broaden their reach going forward.

We believe that the deal will fortify Disney's multichannel subscription model by adding more platforms to deliver its content any time and on any device. The company's focus on providing out-of-home access to its popular programs will help it gain new subscribers. Moreover, such moves not only strengthen Disney's position but also create long-term revenue generating opportunities.


Disney has a number of content distribution deals with companies like Comcast Corp ( CMCSA ), Netflix Inc . ( NFLX ) and Cox Communications.

Earlier, the company announced the content distribution agreement with Cox Communications and entered into a multi-year licensing agreement with Netflix, enabling it to stream movies from the Disney Studio and its associated studios instantly after release. Further, Netflix would gain access to Disney's direct-to-video releases starting 2013.

Disney also has a 10-year long-term comprehensive programming distribution deal with Comcast, thus enabling Comcast's authenticated pay-TV subscriber to access Disney's wide variety of contents.

Walt Disney is one of the world's leading diversified entertainment companies. Moreover, the company commands a formidable portfolio of globally recognized brands, primarily its namesake brand, Walt Disney, followed by ABC, ESPN and Marvel Entertainment. These renowned brands offer a strong competitive edge to the company and bolster its well-established position in the market against major players like News Corporation ( NWSA ) and Time Warner Inc . ( TWX ).

Currently, we maintain a long-term 'Neutral' recommendation on the stock. Moreover, Disney's shares hold a Zacks #3 Rank, which translates into a short-term 'Hold' rating.



CHARTER COMM-A (CHTR): Free Stock Analysis Report

COMCAST CORP A (CMCSA): Free Stock Analysis Report

DISNEY WALT (DIS): Free Stock Analysis Report

NETFLIX INC (NFLX): Free Stock Analysis Report

NEWS CORP INC-A (NWSA): Free Stock Analysis Report

TIME WARNER INC (TWX): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: CHTR , CMCSA , DIS , NFLX , NWSA

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Don't Pay Up to Play REITs
Don't Pay Up to Play REITs          

Stocks

Referenced

Most Active by Volume

100,376,898
  • $17.62 ▲ 0.51%
83,231,837
  • $25.62 ▲ 1.91%
75,739,329
  • $111.78 ▼ 0.77%
65,297,937
  • $36.37 ▼ 1.76%
59,053,093
  • $47.66 ▲ 0.29%
53,482,350
  • $2.59 ▼ 0.38%
51,504,284
  • $7.34 ▲ 2.37%
51,434,656
  • $8.14 ▲ 6.96%
As of 12/19/2014, 04:15 PM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com