Image from erewise.com
Image from erewise.com

With the advent of today’s online streaming, increasing numbers of cable TV subscribers decide to cut off their subscription and go online. Investors expressed deep concern on this especially after Walt Disney Co. declared significant reduction in the numbers of their subscribers of ESPN channel; their cornerstone sport.

According to Barton Crocket; FBR Capital Markets analyst, “Disney’s loss only means nobody’s safe”. Disney lost 9% on its share this Wednesday. This cost $18 billion loss on their market value.

Meanwhile, Time Warner Inc. shared the same sentiment when their investors sent its stocks to as low as 9%. This is despite the fact that it gained better earnings on Wednesday.

“I haven’t seen so much red in a very long time’, expressed John Miller; Ariel Investments portfolio manager. “The numbers of cable TV subscribers who are walking away have accelerated and this is a serious issue”, he added.

HBO Now hit their lowest at $79.80. Discovery Communications fell to 12% when owners of Animal Planet and Discovery Channel accused them for lower advertising sales as well as a strong dollar for reduced quarterly earnings showing to be below the estimates of analysts. The company also refused to purchase back more shares this year to save cash.

Other companies affected by cord cutting include Discovery Communications Inc. (falling 12%), Twenty-First Century Fox Inc. (shares reduced to 7%) and CBS Corp (Falling 5% in regular trading).