The ever dominant Apple (AAPL) is pushing its way into the watch business. It already has disrupted the music retail and consumer global positioning system industries. Not many consumers will cry for its latest target: the cable companies.
Shares of cable and satellite broadcast companies are trending lower Tuesday on the reports Apple plans to provide a TV streaming service for its Apple TV product. The Wall Street Journal is reporting that Apple is in talks with 25 channels, such as ABC, CBS and Fox, and would cost $30 to $40 a month. But the service is also a threat to incumbent Netflix (NFLX).
Anytime Apple — the most valuable company in the U.S. — decides to play in your sandbox, it’s you who usually ends up with sand in your face. That appears to be the case with the stocks in the cable and satellite industry.
The five stocks in the Standard & Poor’s 1500’s Cable and Satellite sub-index are down 1% on average on the news. Netflix isn’t in the group — but would be another company hurt. Its shares are down 0.7% to $418.85.
Apple stock, of course, is up — gaining 1.6% to $127.
Here’s how the cable guys are taking the news:
S&P 1500 STOCKS IN THE CABLE & SATELLITE INDUSTRY GROUP
|Company||Symbol||Tues. stock % Ch.|
|Time Warner Cable||TWC||-1.1%|
Sources: S&P Capital IQ, USA TODAY research