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UBS: Charter streaming not yet a big ESPN threat

Published 07/05/2017, 02:11 PM
© Reuters.  UBS: Charter streaming not yet a big ESPN threat
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  • Disney (DIS -1.9%) investors should be on watch to see how Charter (CHTR +1.6%) handles its latest pass at a streaming television service that excludes sports mainstay ESPN from its base tier, UBS says.
  • Spectrum TV Stream is starting at $19.95/month in large part by avoiding the high per-subscriber fees that ESPN demands, often estimated at between $6-$7/month. Meanwhile, ESPN's flagging number have presented the biggest downside catalyst to Disney stock in the past couple of years.
  • As for Disney worries, UBS analyst Doug Mitchelson says Stream is just a trial run for now and not being advertised on Charter's site, and since the offer isn't a virtual MVPD, it's limited by minimum penetration contracts.
  • Charter could shift up to 1M customers to Stream without running into contract problems with ESPN, says Mitchelson.
  • Now read: Assessing A Disney-Verizon Takeover


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