According to a January 25th statement by Discovery Communications Incs UK unit, negotiations regarding a new carriage deal with Sky Plc reached a blind alley due to a price contention. All 12 channels featured in Discoverys portfolio would not be present any longer on the Skys platform after January 31st, in case there was no resolution to this dispute.
Discovery shares registered their largest daily slump since January 5th on Wednesday, following two straight sessions of gains. The stock went down 3.19% ($0.91) to $27.58, after touching a daily low at $27.41, or a level not seen since January 17th ($27.21). In the week ended on January 22nd the shares of the global media company added 1.79% to their market value compared to a week ago, which marked their best performance since the week ended on December 11th. However, the stock has pared its advance to 0.62% so far during the current month, after rising 1.18% in December. The latter has been a second straight month of gains. For the entire 2016, the shares of the NASDAQ-listed media company added 2.74%.
According to the statement by Discovery Networks UK and Ireland, if a blackout of Discovery channels from Sky Plcs platform indeed occurs, over 5.5 million people will be affected.
“Discoverys portfolio of channels includes many which are linear-only where viewing is falling”, a spokesperson for Sky PLc said, cited by Reuters. “We have been overpaying Discovery for years and are not going to anymore.”
The same person was also quoted as saying that price expectations for Discoverys portfolio of channels were “completely unrealistic”, while Sky Plc had made a decision to abstain from renewing the contract under the terms, which the NASDAQ-listed media giant proposed.
Daily and Weekly Pivot Levels
With the help of the Camarilla calculation method, todays levels of importance for the Discovery stock are presented as follows:
R1 – $27.72
R2 – $27.87
R3 (Range Resistance – Sell) – $28.01
R4 (Long Breakout) – $28.44
R5 (Breakout Target 1) – $28.95
R6 (Breakout Target 2) – $29.16
S1 – $27.44
S2 – $27.29
S3 (Range Support – Buy) – $27.15
S4 (Short Breakout) – $26.72
S5 (Breakout Target 1) – $26.21
S6 (Breakout Target 2) – $26.00
By using the traditional method of calculation, the weekly levels of importance for Discovery Communications Inc (DISCA) are presented as follows:
Central Pivot Point – $27.77
R1 – $28.34
R2 – $28.78
R3 – $29.35
R4 – $29.91
S1 – $27.33
S2 – $26.76
S3 – $26.32
S4 – $25.87
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