Home » Bear Case Scenario » Bear Case Scenario CBS $CBS, $TV, $DIS, $FOX, $CMCSA, $LMCA, $ITVPY, $NFLX

Bear Case Scenario CBS $CBS, $TV, $DIS, $FOX, $CMCSA, $LMCA, $ITVPY, $NFLX

CBS (NYSE:CBS) is about to release earnings. Ponder this Bear Case Scenario as you listen to management comments:

Firms like Netflix are currently paying top dollar for excellent libraries. The libraries will soon be exhausted. The gravy train will soon be over.

Television is a high fixed cost business. Small drops in advertising hurt the bottom line very quickly.

Disruption in the pay-TV ecosystem would hurt channel owners like CBS.

George Gutowski writes from a caveat emptor perspective.