CHICAGO (AFX) -- Media and entertainment stocks closed higher Monday, including radio station group Radio One, which soared on news that its TV One cable network has signed an important multi-year programming deal.
Radio One rose 8.1% to close at $8. The company said TV One, which targets African-American adults, has signed a new agreement with Warner Bros. Domestic Cable Distribution to air a variety of African-American oriented sitcoms and movies.
The sitcoms include 'All of Us,' 'Eve,' 'Living Single' and 'The Parent 'Hood.' Among the films in the package are 'Malcolm X,' 'Lean On Me,' 'Rosewood,' and such classic 'blaxploitation' movies as 'Shaft' and 'Superfly.'
Among diversified entertainment names, Walt Disney Co. said Monday it would stream several hit ABC shows such as 'Lost' and 'Alias' for free over the Internet in the next two months, as the company tries to jumpstart a new revenue stream for its content. Disney shares rose 1% to close at $27.79.
In the cable arena, Cablevision Systems Corp. shares advanced Monday after the cable operator declared its long-awaited $3 billion special dividend.
Cablevision stock rose 1% to close at $27.53, down from a session high of $28.65. The company said late Friday that the dividend of $10 a share would be payable April 24 to holders of record April 18.
Among non-media companies with strong ties to the industry, video rental giant Blockbuster Inc. rose 7.4% to $4.50 after Citigroup lifted its rating to buy from hold. Analyst Tony Wible said that industry-wide DVD and video rental trends are improving, and that Wall Street is underestimating the value of Blockbuster's online business. At the same time, he said, some investors seem to be overly concerned about the impact of video-on-demand technology. This story was supplied by MarketWatch. For further information see www.marketwatch.com.