Media Giant Shares Hit by Fears of Cord Cutting

Financial Times: America’s largest media companies were hit by a sharp sell-off on Wednesday after Disney revised its growth outlook for its ESPN channel and Discovery missed revenue estimates. Media companies are grappling with changes in distribution as viewers seek better value from their cable and satellite packages. Some viewers are “cutting the cord” in favor of online alternatives or choosing cheaper “skinny bundles.” “While online video continues to evolve, Netflix and YouTube’s growth highlight pressure on TV advertising as consumers shift time spent to streaming video,” said Morgan Stanley analyst Benjamin Swinburne.