Media Stocks Decline As Market Dives - Multichannel

Media Stocks Decline As Market Dives

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Media companies took another beating as the stock market plunged in early trading Thursday.

The drop followed comments yesterday by the Federal Reserve that indicated there was downside risk in the economy and that financial markets faced further strains because of debts held by countries in Europe.
The Dow Jones Industrial Average was down more than 300 points in morning trading, knocking almost another 3% off the market indicator.
Among media stocks, Scripps Networks took the biggest hit, dropping more than 5%. Analysts have been concerned about lower ratings at its top channels, particularly Food Network.
CBS was off almost 5%. CBS is the media company perceived as most exposed to tradition media and dependent on advertising revenue, which makes it most vulnerable to short-term changes in the economy.
Cablevision, AMC Networks and Viacom were off about 4%, while Comcast was down more than 3%.

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