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Cord-Cutters Hammer Media Stocks

Shares in U.S. media companies were hit with a steep selloff Wednesday after Walt Disney indicated that as many as 3.2 million people dropped ESPN from their cable packages. Disney shares ended the day down 9.2 percent, but the cord-cutting effect wasn’t limited to the House of Mouse. Time Warner fell 8.5 percent; Viacom declined 7.5; and Discovery Communications was down a whopping 12.1 percent. All of them rely on fees from cable subscribers. Analysts suspect customers are outright trading cable TV subscriptions for Netflix and iTunes or paring down cable packages.