Television stocks overall fell an average of 4.21% on Monday, according to our data.
Sometimes when there’s this much of a market correction, some advertisers pull back on spending, seeing a need to conserve cash.
However in general, the television business is “solid,” believes Patrick Communications Partner Larry Patrick, who tells RBR+TVBR in an interview that TV weathers this kind of stock-related storm better than radio, citing the “second flow of cash from re-trans deals. Those get paid no matter what the economy is doing.”
He calls the dramatic stock ups and downs as “a predictor of extreme caution, because you don’t know. Am I on firm ground, on stable ground or quicksand?”
The uncertainty means “it’s not a great time to raise money,” according to Patrick.
