Entertainment stocks continue to plummet amid cord-cutting environment

NEW YORK, Aug. 20 (UPI) -- As people toss out their cable television subscriptions by the thousands, media and entertainment companies are finding it difficult to keep the values of their stock at consistently high levels.

On Wall Street Thursday, entertainment companies Walt Disney and Viacom saw the worth of their stock fall by 6 percent -- as the Dow Jones Industrial Average lost 358 points by the close of trading.

But they weren't alone. Time Warner fell 5 percent; Sony and 21st Century Fox dropped 4 percent; Comcast 3 percent and CBS dropped 2.5 percent, according to the Hollywood Reporter.

Since it announced underperforming numbers in its quarterly report earlier this month, Disney has seen its stock drop nearly 20 percent in two weeks -- an unprecedented freefall.

A major factor in the sagging of media value is represented by more consumers opting to cut the cord on TV subscriptions in favor of standalone entertainment platforms like Netflix and YouTube.

Earlier this summer, sports giant ESPN said it had received orders from parent company Disney to cut its operating budget by a quarter of a billion dollars.

Once viewed as unsinkable due to its live sports coverage, the broadcaster's recent budget-minded actions are worrying industry leaders about the evolving landscape of television.