1、Barclays Capital Inc.and/or one of its affiliates does and seeks to do business with companiescovered in its research reports.As a result,investors should be aware that the firm may have aconflict of interest that could affect the objectivity of this report.Investors should consider thisreport as on

2、ly a single factor in making their investment decision.Please see analyst certifications and important disclosures beginning on page 25.U.S.MediaQ2 2025 Earnings PreviewLegacy media earnings could surprise to the upside to someextent,but the valuation debate will likely be anchored moreby corporate

3、actions and resulting dominos.OverviewOn balance,risk/reward across legacy media stocks appears to favor the sector into earnings.Despite uncertainty around the macro backdrop and ratings pressure,advertising spendappears to have remained relatively strong during the quarter and television ad pricin

4、g couldremain a source of upside surprise in the quarter,similar to last quarter for legacy media,especially in sports-exposed names.Advertising on streaming services,however,continues tosuffer from pricing weakness due to inventory growth,and this is likely to remain a headwind forsome time given t

5、hat advertising on most streaming services is still not fully scaled.On the affiliate side,the quarter will not have any new variables for the most part(Disneysexpanded CHTR deal will likely kick in next fiscal quarter).We do expect new go-to-marketbundles from Comcast and Charter in video to stem s

6、ome of the sub losses,but it is tough toextrapolate these trends beyond the very short term given the new streaming launches laterthis year.The launch of ESPN streaming and Foxs streaming service will allow consumers towatch all sports in the US on streaming services.Also,given that media companies