Shares in global media company News Corp [ASX:NWS] took a breather today, lagging the Aussie stock market to close down by nearly 1%. At $17.97 per share, News Corp has shed more than a dollar of value per share since late September.
A report from the Commercial Economic Advisory Service of Australia shows that the pay TV ad market shrank by 4.4% in the first six months of this year.
That’s a bad omen for News Corp, which owns pay TV operator Foxtel in a joint venture with Telstra Corporation Ltd [ASX:TLS].
Media consumers have more and more choices nowadays, and clearly many of them are turning away from pay TV. That fact is weighing on the News Corp share price today.
It’s not all bad news. Foxtel is only one feather in News Corp’s cap…for example, the company owns 61.6% of real estate giant REA Group Ltd [ASX:REA].
Free Reports:
Diversifying its media operations should ensure that News Corp rides out the bumps in any one of its businesses.
Cheers, Tim Dohrmann+
Small-Cap Analyst, Australian Small-Cap Investigator
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