The television landscape is not what it was even just 10 years ago. The rise of cord-cutting among former subscribers of cable television is leaving linear television trembling. We just saw some of the impact of that change as Disney (NYSE:DIS) finally reached a deal with cable provider Charter (NASDAQ:CHTR) over carriage costs and restored channels.
With Monday Night Football only hours away, Charter customers will be able to catch the game on their Charter cable systems once more as ESPN is back in play. Terms of the deal were kept somewhat quiet, but Charter subscribers will receive a discounted wholesale price for Disney streaming services.
Previously, Disney had directly appealed to Charter customers to instead subscribe to Hulu + Live TV to ensure that their channels of choice would make it to their screens. This underscored the fundamentally changing nature of live television. Everyday television’s importance is waning. Take a look at the channel listings sometime; see how many of those formerly “premium” channels are just rerun blocks now. See how many channels that were there 10 years ago are gone now. Then, consider where all those viewers went.
Analysts, meanwhile, think Disney is diversified enough to stay ahead of the worst troubles. With 14 Buy ratings, five Holds, and two Sells, Disney stock is considered a Moderate Buy. Further, with an average price target of $110.41, Disney stock offers investors 34.24% upside potential.