Ten’s market value falls to record low as major TV networks’ shares take a hit
The share prices of Seven West Media, Nine Entertainment and Network Ten have all fallen significantly today, with Ten’s market capitalisation hitting a new record low.
Nine (ASX:NEC) shed 4.27 per cent to close at $1.35, Seven (ASX:SWM) was down 3.64 per cent to 79.5 cents, while Ten (ASX:TEN) saw a 3.81 per cent decline which saw its share price fall to a record low of $1.01, a 3.81 per cent decline, giving it a market capitalisation of just $367.41m.
Ten’s share price falls to a record low.
Overall the ASX was down 2.78 per cent today.
And they are all still 50-60% overvalued.
It’s no wonder that the market is questioning the value of these organisations. They have essentially sat on their hands for the better part of a decade. Now, once the general population has begun embracing digital content media channels like Youtube and Netflix – and changed their behaviour, the broadcaster’s biggest idea appears to be live streaming broadcast TV on the internet – the old behaviour. Yikes.
Too little, too late and laughably out of touch with where consumers are headed.
The market isn’t going to want to bet much on Presto and Stan taking on Netflix either.
Sad really.
User behaviour has changed and has been changing yet the senior management of the networks has been asleep at the wheel for so long even though they have had ample to collaborate together on a response and or partner with the disruptors. Instead they’ve focussed on looking for the next big hit that would turn the network around (sounds just like the noises made by the record industry in its deathroes) and paying too much for sports rights. The end will be quicker and swifter than anyone predicts.
The market has fallen overall by 19%, so in reality they are doing quite well.