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TIS17: Analyst Says TV Network Business in Trouble

INDIANAPOLIS – Sanford Bernstein media analyst Todd Juenger didn’t pull any punches at The Independent Show Tuesday, adding at a well-attended session that the current TV network model of high returns and higher price increases isn’t sustainable in an on-demand world.

Juenger has been a harsh critic of the existing TV model for years. At his TIS session he pointed out that the TV business, which has enjoyed some of the highest profit margins in modern U.S. business, may be in for a rude awakening.

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Juenger said with 40% and a 30% return on capital, cable networks enjoy an unprecedented position, adding that he looked across the S&P 500 to find companies that had margins and ROIC comparable to TV networks. He found five.

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(Photo via Pictures of Money's FlickrImage taken on Sept. 17, 2015 and used per Creative Commons 2.0 license. The photo was cropped to fit 16x9 aspect ratio.)