Warner Bros. Discovery (NASDAQ: WBD) is one of the world's biggest names when it comes to entertainment. Although it has overall been a bad year for the company's stock price, positive news has allowed shares to recover.
On September 12th, the company announced a multi-year deal with one of the largest U.S. cable TV companies, Charter Communications (NASDAQ: CHTR), also known as Spectrum. Since the announcement, shares have been up 21%. Let's dive deeper into what the announcement means for Warner Bros.'s long-term future and whether it can further reignite its shares.
Breaking Down Warner and Charter's Big Deal
The first notable point to make about the deal was that it was reached "nearly one year early." This shows the two firms understand the need to move quickly in this space. Nielsen data shows that, in June, streaming hit a record market share in TV viewing.
Of the total time spent watching TV, 40.3% was through streaming services, an increase from 37.7% in Jun. 2023. Streaming increased its share mostly by taking from cable providers, whose share went from 30.6% to 27.2%.
Clearly, cable still has a place in the TV market, but it is slowly dying. One good thing about the deal between Warner and Charter is that it focuses on both cable and streaming. ...
