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This week saw millions of dollars swept out of media stocks as investors began to panic and abandon their positions. Big names in the industry saw their
share prices plummet as traders worried about the growing popularity of cutting the cable cord and swapping to an online viewing option.
Sliding SharesViacom Inc.VIAB emerged as the biggest loser after reporting lower-than-expected revenue due to a poor performance by it's TV business.
Twenty-First Century FoxFOX lost 13 percent from Tuesday to Thursday and
Walt Disney CoDIS fell 11 percent during that period. The sell off came after the major networks announced falling viewership and sinking ad revenue, underscoring worries that cable TV was headed the way of the dodo.
Digital Advertising
Advertising has shifted online, and for the first time that transition is beginning to affect TV. Other sectors like print and radio have already suffered the consequences of the internet's dominance in the ad market, but cable operators had always considered themselves safe. Sites like YouTube and Vine have taken over as popular forms of entertainment for millennials, leaving firms who depend on TV ad sales high and dry.
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By contrast, subscription services are on the rise. Shares of
Netflix Inc.NFLX have been buoyed by the shift toward online viewing as the company's on-demand service has gained popularity.
Amazon.com Inc.'s
AMZN Prime Instant Video offering has been a hit and more and more show producers are looking to online providers rather than traditional media companies to pitch their new shows.
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