Along with Disney and Time Warner, Lehman Brothers lowered its ratings on News Corp and CBS Corp fearing the television and film industry could suffer the negative consequences of the transition to digital broadcasting, according to Reuters.

“To be clear, our fear is that the damage that digital distribution inflicted on the music industry will replicate itself in the movie industry, and our fears are too great to justify keeping neutral or positive ratings on the creators and distributors of movie and TV content,” analyst Anthony DiClemente wrote in a research note, according to Reuters.

DiClemente said the Fox film/TV business is “entering a period of secular decline due to the “growing threats of digital distribution of film/TV content.”

“Owning a collection of movies in this new digital world is really just not that cool for young adults in the target demographic that we look to for the future of the business,” DiClemente told a press conference.  

On February 17, 2009, all full-power stations will turn off their analog signals and broadcast solely in digital format. The switch will bring an improved quality of sound and picture. The switch was ordered by the Congress to free up public airwaves for other uses, such as for police and fire departments.

In afternoon trading, Disney shares fell 86 cents to $30.04, CBS fell 85 cents to $17.77, Time Warner fell 14 cents to $14.55, News Corp was down 9 cents at $14.47 and Viacom fell 77 cents to $28.88, Reuters reports. CBs suffered the sharpest drop, falling 4.5 percent.