Wunderlich Comments On DirecTV & Disney's Agreement
Earlier this week, DirecTV (NASDAQ: DTV) and Walt Disney Co (NYSE: DIS) finalized a new agreement that covers linear networks and on-demand streaming content. The pact includes the launch of Fusion, Longhorn Network, ESPN, Goal Line and Buzzer Beater while also including the eight owned and operated ABC broadcast stations.
As part of the deal, DirecTV Everywhere programming and in-home streaming is now available on tablets, smartphones and PCs.
In a note on Friday, Matthew Harrigan of Wunderlich Securities commented that the agreement should emerge as a “nice strategic and tactical positive” move for DirecTV especially as AT&T Inc. (NYSE: T) continues to emphasize mobile video capabilities.
According to Harrigan, the recent soft launch of Yaveo, an over-the-top Spanish language entertainment experience demonstrates DirecTV's “continued product innovation.” The analyst also notes that the recently launched DirecTV-14 will be “pivotal” to its 4K ambitions.
Harrigan states DirecTV's developments comes against a backdrop of “continued friction” between Dish Network Corp (NASDAQ: DISH) and programmers. The analyst does note that Dish Network does have agreements with Walt Disney, but programming fictions could continue to dampen its core video business.
Shares of DirecTV are Hold rated with a $95 price target.
Image credit: Wmachine, Wikimedia
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|Jan 2017||BMO Capital||Downgrades||Market Perform||Underperform|
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