Morgan Stanley (MS) Finds Media Industry Prospects Attractive

Morgan Stanley Research’s (NYSE: MS) assessment of November ratings showed that broadcast was down 9% of primetime basis and cable ratings were down 5.4% on a total day basis. Season to date ratings are trending slightly below guarantees, but such guarantees are at times sold on different demos than A18-49. Moreover, none of the networks seem to be heading to a material make-good position.

The World Series, with its overall rating up by 40% YoY has helped Fox to lead with an increase of 2% YoY. CBS (NYSE: CBS) slipped 13% on a PT 18-49 basis. Viacom’s (NYSE: VIA) MTVN key demos were up 1%, but music channels MTV and VH-1 underperformed by 11% and 16% in their respective groups.

Time Warner (NYSE: TWX) improved, with CNN down by 68%, and Tru and Cartoon up by 13% and 4% respectively. Disney (NYSE: DIS) remained flat with ESPN up 2% and ABC Family down 8%.