The Walt Disney Company
) entered into a long-term distribution agreement with Cox
Communications, whereby the latter will deliver Disney's popular
programs to Cox TV customers.
Subscribers of Cox TV can now watch live or on-demand content
of 70 Disney, ABC, and ESPN services on their TV sets, PCs,
smartphones, or tablets. Although, the financial terms of the
deal are not disclosed, the partnership is expected to benefit
both companies over the long term and will broaden their reach
The deal will fortify Disney's multichannel subscription model
by adding more platforms to deliver its content any time and on
any device. Moreover, Cox Communications' focus on out-of-home
access to widely popular Disney programs by subscribers will
position the latter well in the multi-channel pay-TV market and
help it gain new subscribers.
Disney already has a number of content distribution deals with
). Disney entered into 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.
Earlier this month, the company 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.
We believe such moves not only strengthen Disney's position
but also expand its coverage area while creating long-term
revenue generating opportunities.
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.
COMCAST CORP A (CMCSA): Free Stock Analysis
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