The Walt Disney Company
) announced a new long-term content distribution agreement with
Charter Communications Inc
), 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
Disney has a number of content distribution deals with
) 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
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
Time Warner Inc
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
COMCAST CORP A (CMCSA): Free Stock Analysis
DISNEY WALT (DIS): Free Stock Analysis Report
NETFLIX INC (NFLX): Free Stock Analysis
NEWS CORP INC-A (NWSA): Free Stock Analysis
TIME WARNER INC (TWX): Free Stock Analysis
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