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Discovery Communications, Inc (NASDAQ:DISCA), (IHRT) - BofA s Media Downgrade Spree: ViacomCBS, Discovery, iHeartMedia

The resumption of scripted content will negatively impact free cash flow. Lack of clarity on incremental marketing, tech, and content spend related to the 2021 Paramount+ rebrand. Viacom may be losing the streaming video race as other major studios accelerated their streaming ambitions. Continued overhang from the National Football League. Delayed theatrical releases. The Discovery Downgrade The case against Discovery s stock is based on: Unclear signs of how successful Discovery+ will be and what impact a streaming platform will have on linear TV viewership. Higher competition adds pressure to Discovery to create must-have content. Competition with substitute products like YouTube. Long-term streaming EBITDA margin estimates of around 20% are significantly lower versus cable networks at more than 40%.

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