Why Discovery Communications, Inc. Stock Fell 11.3% in October

Shares of Discovery Communications, Inc. (NASDAQ: DISCA) (NASDAQ: DISCB) (NASDAQ: DISCK) fell 11.3% in October according to data provided by S&P Global Market Intelligence. Declines for its subscriber base, affiliate fees in the domestic market, and concerns about the viability of the pay-television model continued to weigh on the stock and added to its big year-to-date slide.

With cord-cutting altering the television landscape and online-based content presenting challenges to cable's value proposition, the market's waning confidence in Discovery makes sense. The company derives most of its revenues from its namesake television channels and reality-based TLC network, so it doesn't have much in the way of diversification to provide a cushion if its TV woes continue. That said, the company does have a strong, differentiated content slate, and its Discovery channel has been one of the most resilient in the American market amid market pressures.

Image source: Discovery.

Source: Fool.com