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Speaker 1: a look at the US pay television industry. We're gonna
Speaker 1: talk about skinny bundles and the competitors. Will Amazon and
Speaker 1: Dish be the winners? But right now let's go to
Speaker 1: Charlie Pellett in the Bloomberg news room for Bloomberg Business Flag.
Speaker 1: Thank you very much, pim Fox Fox are advancing, heading
Speaker 1: toward records, the DAL, the SMP, NEZ, dang all gaining.
Speaker 1: Verizon shares rising on Yahoo deal speculation. Right now we
Speaker 1: have got shares a Verizon up by one percent. Yahoo
Speaker 1: shares they are Horror by one point one percent. GE
Speaker 1: report had second quarter profit to beat analysts estimates. Those
Speaker 1: surging sales and energy units helped the industrial giant counter
Speaker 1: the impact of a sluggish economy. But GE shares are
Speaker 1: trading lower. They're down now by one point nine percent.
Speaker 1: GE sold fewer locomotives and less oil field equipment. This
Speaker 1: global economic uncertainty took a toll on demand for big
Speaker 1: ticket industrial products. Karen Ubelhardt is a senior analyst at
Speaker 1: Bloomberg Intelligence. Actually thought it was a good quarter. They
Speaker 1: did beat expectations. Oil and gas was very weak, but
Speaker 1: I actually was worried about it actually even being weaker.
Speaker 1: Uh yeah, I mean the stocks had a decent run.
Speaker 1: I think it's more about expectations than it is about
Speaker 1: actual results. I think the results were pretty good. Honeywell
Speaker 1: International cut its twenty six sales forecast amidst sluggish global
Speaker 1: growth and lower demand for energy related products and services.
Speaker 1: Honeywell International down two point six percent. Sketcher's USA and
Speaker 1: VF Corps posting weaker second quarter results than analysts predicted,
Speaker 1: assigned the shaky global economy prompted shoppers to put off
Speaker 1: purchases of sneakers and jeans. Sketchers down twenty two point
Speaker 1: four percent. Right now, shares A VF Corps are trading
Speaker 1: LAWA by nine tenths of one percent. Equities higher S
Speaker 1: and P five hun Did It Index up seven to
Speaker 1: seventy two, a gain. There are four tenths of one
Speaker 1: percent down, Industrial is up twenty eight, a gain of
Speaker 1: two tenths of one percent. NAS stack of twenty five,
Speaker 1: a gain of five tenths of one percent, Gold down
Speaker 1: seven twenty benced, THET three A dropped. There are five
Speaker 1: tenths of one percent, and crude oil thirty of barrel
Speaker 1: now West Texas Intermediate Town one percent to thirty two
Speaker 1: on Wall Street. Now a look at the other stories
Speaker 1: making news. Thank you Charlie from the Bloomberg News room.
Speaker 1: I'm Rami in essentio. Munich. Police say there are several
Speaker 1: people dead and wounded in an attack on a mall.
Speaker 1: Police also say the shooter or shooters are now on
Speaker 1: the run. This man works at a nearby gas station.
Speaker 1: Are parios everybody are running around. Train service has been
Speaker 1: halted after reports at the gunmen or gun men tried
Speaker 1: to flee by train. Donald Trump met with campaign volunteers
Speaker 1: this morning, offering praise and thanks. Trump says he'll benefit
Speaker 1: from the Democratic Party's poor treatment of Bernie Sanders and
Speaker 1: Bernie was tough. Bernie was stuff. We're gonna get a
Speaker 1: lout of the Bernie voters by the woman because they
Speaker 1: didn't treat Bernie right. They didn't treat him right. Now
Speaker 1: that the Republican National Convention has wrapped up, it's the
Speaker 1: Democrats turn. Here's Amy Morris from the Bloomberg Washington newsroom.
Speaker 1: Bloomberg Congressional reporter Eric Wawson says he is watching for
Speaker 1: the theme of the convention, any specific policies that might
Speaker 1: unite Democrats. We know that minimum wage is a major one.
Speaker 1: Equal pay will also be emphasized. But if you looked
Speaker 1: at the way the platform came to go, there was
Speaker 1: a major fight on trade, for example. The platform remains
Speaker 1: neutral on that, Wawson says. While Democratic senators do plan
Speaker 1: to be in Philly on the House side, their election
Speaker 1: contests are just too close. Many House members planning to
Speaker 1: stay away. Amy Moore is Bloomberg Radio Washington, and the
Speaker 1: New Jersey town made famous by the Jersey Shore reality
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Speaker 1: one under twenty countries. I'm Ramie in essentio. This is Bloomberg, Charlie,
Speaker 1: and we thank you and again recapping S and P
Speaker 1: five Hunted Index up seven to two, a gain narrow
Speaker 1: four tenths of one percent. I'm Charlie Pellet and that's
Speaker 1: a Bloomberg business flash. You're listening to Stock with Kathleen
Speaker 1: on Bloomberg Radio. Netflix is putting pressure on traditional pay
Speaker 1: television providers such as Comcast. At the same time, these
Speaker 1: cable companies are fighting with satellite providers and other competitor
Speaker 1: It is in order to attract a shrinking customer base.
Speaker 1: Here to tell us more about trends in the US
Speaker 1: pay television industry. Tuna Amobi, equity analyst for SMP Capital
Speaker 1: I Q Tuna, thanks very much for being with me
Speaker 1: tell us about these trends and the competition that is
Speaker 1: coming from non traditional television broadcasters. Hi Pox, Hi team,
Speaker 1: good afternoon, Thanks for having me on the show. Um So,
Speaker 1: I guess you know. We're seeing a trend now of
Speaker 1: consumers increasingly sobstitute in their traditional pay TV packages for
Speaker 1: online video. Um. Some of this reflects the maturation of
Speaker 1: the USA TV landscape. Um also the fact that cable
Speaker 1: bills have been rising much faster than inflation, so consumers
Speaker 1: have been increasingly looking for cheaper alternatives like Netflix, and
Speaker 1: now we're seeing a whole new generation of skinny cable
Speaker 1: bundle packages with Internet. So I think, um, the traditional
Speaker 1: pay TV companies are getting a run of their money
Speaker 1: because their customer bases declining or at least very mature,
Speaker 1: and we're seeing um, you know, these up starts, you know,
Speaker 1: kind of chipping away. What's what if you could define
Speaker 1: what is the term skinny bundle or skinny package, what
Speaker 1: does that mean? Well, it's just the term to refer
Speaker 1: to slim down programming packages. So if you think about
Speaker 1: the average um, you know, viewer gets you know, literally
Speaker 1: hundreds of channels, but studies have shown that consumers will
Speaker 1: only watched just a handful of those. So the thinking is,
Speaker 1: why should consumers continue to pay for um, literally hundreds
Speaker 1: or dollars of channels at the minimum that they're not
Speaker 1: even watching. So that's why we're seeing more customized offerings,
Speaker 1: so called skinny bundles that you know, you can basically, um,
Speaker 1: you know, get customized packages in some respects, including some
Speaker 1: of the most watched you know programming channels for much
Speaker 1: cheaper monthly subprison fees. To tell us about Amazon and
Speaker 1: what you foresee their programming will be like in the
Speaker 1: next couple of years. UM, Well, seen, we've seen Amazon
Speaker 1: really you know, elevate their their game in terms of
Speaker 1: their video offering. UH. So, not only have they rotcheted
Speaker 1: up their original programming investments in the last several years, UM,
Speaker 1: we're also seeing them trying to customize some of their
Speaker 1: offerings because recently they just launched you know, a stand
Speaker 1: alone streaming offering, so you no longer need to be
Speaker 1: a prime subscriber to to be able to get the
Speaker 1: Amazon you know video. This is an aim that had
Speaker 1: to have competition with Netflix. So while they're still lagging Netflix,
Speaker 1: Amazon in terms of the uh the the array of content. UM.
Speaker 1: I think they really have made a significant amount of
Speaker 1: you know effort in the last several years to at
Speaker 1: least close from ground and we're seeing their membership um
Speaker 1: grow significantly thanks in large parts to what they're now
Speaker 1: offering on the video side. Tuna is Amazon worth seven
Speaker 1: forty eight dollars a share. It's currently up a little
Speaker 1: bit more than a half a percent today. Well, you know,
Speaker 1: I think that's a very good question that we struggle with.
Speaker 1: We certainly still have um, you know, by recommendation on
Speaker 1: on Amazon. Um. You know, I think that frankly, I
Speaker 1: think that we we see quite some offsite, albeit relatively moderate,
Speaker 1: from current levels. UM. There's any number of ways you
Speaker 1: can justify that valuation. Right, So there's this um Amazon
Speaker 1: web services that you know is growing and leafs and
Speaker 1: bounds which could be spun off down the road, we think.
Speaker 1: And then they're also getting share um you know from
Speaker 1: traditional retailers like wal Mart and Target, and just recently
Speaker 1: we saw this huge success from Prime Day, which really
Speaker 1: really said inbar in terms of what you can expect
Speaker 1: and how you can expect Amazon to you know, customized
Speaker 1: marketing offering. So it's all about you know, convenience and
Speaker 1: selection and price. When you talk about Amazon, I think
Speaker 1: they're doing a great job in that respect. To know,
Speaker 1: why do you consider Sony Corporation s n E is
Speaker 1: the symbol of the American Depository received Why do you
Speaker 1: think that Sony is worth buying? Well, I have to
Speaker 1: tell you Sony, they conglomerate. UM, I think they really
Speaker 1: have turned around or kind of reinvented their um you know,
Speaker 1: struggling core electronics business. So now they're you know, shifting
Speaker 1: towards more kind of more kind of mobile and customized devices,
Speaker 1: and they've done a pretty decent job in that. But
Speaker 1: I think more importantly, I think Sonny is really made
Speaker 1: some strides on the entertainment side. PlayStation View, for example,
Speaker 1: is one of those skinny packages that have emerged over
Speaker 1: the past year and surprisingly getting some traction they against
Speaker 1: some of these other competitors. So I think they really
Speaker 1: try to reinvent their their offerings. And keep in mind
Speaker 1: when you say PlayStation View, it's not really about PlayStation
Speaker 1: on itself. It's literally content that's made available across you know, dozens,
Speaker 1: if not hundreds of devices, and they've been able to
Speaker 1: really get subtraction with the content providers. Thank you very much. Tuna,
Speaker 1: a mobi equity analyst for S and P, joining us
Speaker 1: like giving us the details of trends in the pay
Speaker 1: television industry in the United States. The shares of Sony
Speaker 1: the a d r s UP todays thirty dollars one cents.
Speaker 1: The stock of Sony up more than twenty two so
Speaker 1: far this year, This is taking Stock, I'm pim Fox,
Speaker 1: my co host Kathleen Hayes on vacation, and this is Bloomberg.
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