Standard & Poor's Ratings Services expects that business risks for the network TV business will continue to increase over the near term as a result of extensive media fragmentation, technology threats, cost pressures, and changes in government regulation. We currently view the risks as outweighing growth opportunities, such as product placement and mobile applications, which are still establishing their revenue potential. As a result, we view the networks' parent company ratings as remaining in investment-grade territory if these generally well-diversified companies also pursue shareholder return agendas in a measured fashion, but spin-offs or other major business restructurings beyond the recently proposed split-up of Viacom Inc. may cause us to reconsider this view. Currently, the networks are beset by a host...
Companies mentioned in this report are:
- General Electric Co.
- Twenty-First Century Fox Inc.
- CBS Corp.
- ION Media Networks Inc.
- The Walt Disney Co.
- Time Warner Inc.
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Research Type: Commentary
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