Notes from the Media Red Carpet -- RBC Capital Markets

Can39t escape OTT The future of Affiliate Fees remains the 1 topic and we39d say that perspectives may be shifting ever so slightly from 39fairly negative39 to 39kinda tepid39 in terms of Affiliate revenue growth viability for most large cap stocks The composition price and success of digital streaming options are likely to be a major driver of future valuations This will likely be a key topic on Q2 conference calls potentially with added poignancy if Q2 multichannel sub adds are seasonally weak as is typicalDIS what breaks the funk Nearly every investor was interested in what everyone else thinks about Disney Our sense is that nonholders have limited conviction to buy based on ESPN risk vs Studio strength Holders remain frustrated that cable subs remain such a big issue in light of how good the slate has been and Shanghai looking impressive We think Disney will remain somewhat rangebound at 95105 until it outgrows the ESPN pressures which is unlikely to be in 2016TWX moves up the ladder Time Warner was one of the more talked about stocks as we think it39s now considered the relative 39safe haven39 of the group on account of DIS facing the above narrative Fox more exposed to Europe and CBS mingled with Viacom headlines We think the stock remains inexpensive on 115x CY17E PE so investors with a value bias like the mix of assets divi growth and potential for a takeoutDiscovery it39s me and you kid Investors were keen to hear our contrarian Outperform view on DISCA but we didn39t get the impression they were quite sold Confidence thus remains low about the outlook Q2 results are likely to prove a big test for management to either prove us right or reinforce the bear thesisCBSViacom are they ever ever ever getting back to together Most investors we spoke to were in favor of a combo which surprised us a bit They think NewCo makes sense and they think Les would be perfect for the job The discussion is already shifting as to whether this would spur further industry consolidation amp8206Click here for conflict of interest and other disclosures relating to The Walt Disney Company Time Warner Inc CBS Corporation Viacom Inc Discovery Communications Inc TwentyFirst Century Fox Inc Steven Cahall These disclosures are also available by sending an email to rbcinsightrbccmcomThe opinions and points of view expressed in this commentary are exclusively the views of the author and do not necessarily represent the views of MediaVillagecom MyersBizNet Inc management or associated bloggers

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Notes from the Media Red Carpet -- RBC Capital Markets

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Steven Cahall

FEMA and the Ad Council Encourage AANHPI Communities to Enhance Disaster Preparedness in New PSAs - Ad Council InSites

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Notes from the Media Red Carpet -- RBC Capital Markets

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