Research firm BTIG downgraded 21st Century Fox (FOXA, FOX), saying that the company will not be spared from the media sector’s upcoming problems.

WHAT’S NEW: Traditional media companies will be hurt by the shrinking of paid TV bundles, BTIG analyst Richard Greenfield wrote in a note to investors today. Although Greenfield had previously been enamored by Fox’s decision to invest in new assets and its emphasis on sports programming, he now believes that “there will be no good houses on a bad media block.” Moreover, Greenfield does not think that any large media company is prepared to switch to a direct-to-consumer model and he does not believe that Fox would be able to merge with Time Warner (TWX) in the near-term. Additionally, TV ads must evolve, Fox has to end its share buybacks, and the company lacks a meaningful media strategy, the analyst stated.

WHAT’S NOTABLE: The shares of Fox rival CBS (CBS) have risen 6% in the last five days and 17% in the last month. At its investor day earlier this week, the company said its content is “essential” to any skinny bundle and added that it would explore strategic options for its radio unit.

PRICE ACTION: In morning trading, Class A shares of 21st Century Fox rose 0.4% to $28.25.