* Sees cable network assets as organic growth opportunity
* Starts Time Warner, Discovery Comm, Viacom with "buy"
* Starts Scripps Networks, Walt Disney with "neutral"
Sept 21 (Reuters) - UBS began coverage of the U.S.
entertainment sector with a neutral bias and said it considers
cable network assets as one of the few organic growth
opportunities in media.
The brokerage started coverage of Time Warner Inc (TWX.N),
Discovery Communications Inc (DISCA.O) and Viacom Inc (VIAb.N)
with "buy" ratings.
"Investment in programming has been a driver of growth in
audience share over the past few years, with cable ad growth
significantly outperforming the TV networks," analyst John
Janedis said in a note to clients.
The analyst, who started Scripps Networks Interactive Inc
(SNI.N) and Walt Disney Co (DIS.N) with "neutral" ratings,
said technology is making the film business model more
challenging.
"Properly responding to these changes will be a key factor
in maintaining the health of the business model," Janedis
said.
Last week, Credit Suisse said streaming video offerings
from Netflix (NFLX.O), Apple Inc (AAPL.O) and Google TV will
catch on with consumers eager to cut the cable cord and
downgraded the U.S. entertainment sector to "underweight."
(Reporting by Saqib Iqbal Ahmed in Bangalore; Editing by Anne
Pallivathuckal)
Watch Entertainment News Online
* Starts Time Warner, Discovery Comm, Viacom with "buy"
* Starts Scripps Networks, Walt Disney with "neutral"
Sept 21 (Reuters) - UBS began coverage of the U.S.
entertainment sector with a neutral bias and said it considers
cable network assets as one of the few organic growth
opportunities in media.
The brokerage started coverage of Time Warner Inc (TWX.N),
Discovery Communications Inc (DISCA.O) and Viacom Inc (VIAb.N)
with "buy" ratings.
"Investment in programming has been a driver of growth in
audience share over the past few years, with cable ad growth
significantly outperforming the TV networks," analyst John
Janedis said in a note to clients.
The analyst, who started Scripps Networks Interactive Inc
(SNI.N) and Walt Disney Co (DIS.N) with "neutral" ratings,
said technology is making the film business model more
challenging.
"Properly responding to these changes will be a key factor
in maintaining the health of the business model," Janedis
said.
Last week, Credit Suisse said streaming video offerings
from Netflix (NFLX.O), Apple Inc (AAPL.O) and Google TV will
catch on with consumers eager to cut the cable cord and
downgraded the U.S. entertainment sector to "underweight."
(Reporting by Saqib Iqbal Ahmed in Bangalore; Editing by Anne
Pallivathuckal)
Watch Entertainment News Online
