Rise in media sector stocks
The media sector’s performance has been at a high. Year-to-date, media sector stocks, including Netflix (NFLX), Comcast (CMCSA), Time Warner (TWX) and The Walt Disney Company (DIS), have seen their prices rise by 16.6%, 7.8%, 2.3%, and 8.5%, respectively.
Factors driving the rise in media sector stocks
There has been increasing speculation that the media industry could be heading towards consolidation, with AT&T’s (T) proposed acquisition of Time Warner (TWX). Pay-TV companies are gearing up for the rising competition from streaming services, while the OTT (over-the-top) industry continues to see new entrants such as Alphabet’s (GOOG) YouTube TV.
In this series
In this series, we’ll look at key factors that could affect the media industry. We’ll also look at affiliate fees and the advertising outlook for the media industry in 2Q17, and whether programming costs will continue to increase in the near future. We’ll look at how media companies’ filmed entertainment and theme park segments are likely to perform for the remaining of the year, and how changes in the regulatory environment in the United States (SPY) could impact the sector. First, let’s look at the rise of streaming services.