AT&T Merger Could Threaten Netflix's & Amazon's Competitive Edge
*By Alisha Haridasani*
AT&T's $85 billion takeover of Time Warner will disrupt traditional broadcast and upend internet streaming, fundamentally changing the way consumers watch TV, said Rich Greenfield, an analyst at BTIG.
With content from HBO, CNN, and Warner Bros., AT&T will launch a "skinny bundle" of 30 channels called AT&T Watch that will be free for all AT&T wireless subscribers, Greenfield said.
“That is going to be a really disruptive move by AT&T,” he added. “It’s going to be interesting to see how the other tech companies react to this.”
Streaming services Netflix, Hulu, and Amazon, which create original programming that reaches consumers directly via the internet, have broken the broadcast and cable TV stranglehold on content, putting pressure on subscription and TV advertising revenue.
“Roughly 20 percent of American households have cut the cord, discontinuing traditional MVPD services,” U.S. District Judge Richard Leon wrote in his [opinion](http://www.dcd.uscourts.gov/sites/dcd/files/17-2511opinion.pdf) approving the AT&T bid. “That number, high as it is, continues to grow.”
The AT&T-Time Warner merger, which is expected to be completed next week, sets the stage for more vertical integrations between content creators and distributors. Comcast is expected to make another [bid](https://cheddar.com/videos/rich-greenfield-murdoch-no-longer-set-on-selling-to-disney-for-stock) for 21st Century Fox’s assets as early as Wednesday in an effort to wrestle it away from Disney. If Comcast is successful, it would marry Fox’s Hollywood studio and its British broadcaster Sky with Comcast's NBC Universal.
Comcast may partner up with other companies to make that offer more attractive for Fox chairman Rupert Murdoch, said Greenfield.
“In order to really beat Disney, they sort of need a stronger balance sheet,” he said.
For the full interview, [click here](https://cheddar.com/videos/why-at-and-ts-victory-is-monumental).
Octavio Marenzi, Founder & CEO of Opimas, discusses how labor participation is directly correlated with wage pressures and why supply chain issues are having little effect on earnings from the retail sector.
Philip Palumbo, Founder, CEO & Chief Investment Officer of Palumbo Wealth Management, discusses why wage pressure could impact earnings going forward and talks about the valuation mismatch within the tech sector.
Adam Coons, Portfolio Manager at Winthrop Capital Management, explains why supply chain constraints are the biggest risk to markets and which sectors are poised to outperform if interest rates rise.
Macy's reported a Q3 earnings beat and raked in $5.4 billion in revenue. The department store giant also said it is equipped to handle the expected holiday shopping rush. The company also announced it would be launching its own curated digital marketplace in 2022.
Zumba Fitness CEO Alberto Perlman joined Cheddar's "Between Bells" to talk about the rise in demand for in-person training after the company saw a 55 percent jump in scheduled classes over Q3. Perlman noted that while demand for in-person training is increasing, the pandemic exposed a market for at-home sessions that will likely persist even after it ends. "The world is becoming hybrid, and people are finding ways to fit in two workouts a week at home and then three workouts at the gym. And our instructors are perfectly positioned to adapt to those environments," he said.
Sting is the latest recording artist looking to unload his music catalog — for a staggering $250 million. Universal Music Group is said to be at the top of the list of suitors but the pop star's hits could still end up remaining with Sony.
Greenwood, a digital banking platform aimed at supporting Black and Latino businesses and clients, is launching its very own GreenBook. Named after the historic publication for Black travelers during the era of Jim Crow, the online guide will provide a directory of Black- and Latino-owned businesses across the country. Ryan Glover, the founder and chairman of Greenwood, joined Cheddar to provide additional details about the listings.
Apple is reversing course on its in-house repair policy amid the ongoing pressure from right-to-repair advocates and will roll out a self-service option allowing customers to repair and replace some parts on some iPhones themselves.
Greg Martin, the co-founder of Rainmaker Securities, joined Cheddar to talk about fast-casual restaurant chain Sweetgreen's IPO launch on the New York Stock Exchange. Martin said he is not confident the market will react positively to the launch and expects volatility ahead because "when you look at their metrics, they're good but not great." He also noted that it might take investors a while to figure out exactly what the brand is as it balances between being a traditional restaurant and a tech-enabled food platform.
The major indexes closed lower Wednesday even as major retailers reported better-than-expected quarterly earnings. Melissa Brown, Managing Director of Applied Research at Contigo, joined Cheddar News' Closing Bell to discuss today's market close.
