Where Netflix’s Valuation Stands among Its Peers
Netflix is now trading at a PE (price-to-earnings) multiple of 239.61x.
Media & Entertainment
Market Realist covers the latest business and financial developments in media and entertainment, from broadcast to streaming and from small to big screen.
Why Activision Blizzard Aims to Target the Battle Royale Gaming Segment
In March, the stock prices of gaming companies Activision Blizzard (ATVI), Take-Two Interactive (TTWO), and Electronic Arts (EA) fell, driven by concerns over the tremendous success of Epic Games’ Fortnite.
Why Disney Is Investing in Theme Parks
In fiscal 2Q18, Disney’s Parks and Resorts segment reported revenues of $4.9 billion.
Understanding Time Warner’s Warner Bros. Revenue Trends
Time Warner’s (TWX) studio segment, Warner Bros., had a weak 1Q18, with both its revenue and operating income falling.
Who Are Alphabet’s Major Cloud Customers?
In March, Airbus said it was shifting its workforce to Google’s G-Suite from Microsoft Office (MSFT).
Why Activision Blizzard’s Revenues Are Expected to Rise in Fiscal 2018
Analysts expect Activision Blizzard’s (ATVI) revenues to rise 10.8% YoY (year-over-year) to $1.33 billion in 1Q18.
What Are AT&T’s Top Priorities for 2018?
AT&T’s management stated that in 2018, the company’s top priority would be closing the Time Warner (TWX) deal.
How Will the New Fox Look after the Disney Deal?
21st Century Fox (FOXA) will be left with news and sports assets after selling most of its assets to the Walt Disney Company (DIS) in a $52.4 billion deal.
How Will Disney Benefit from Its 21st Century Fox Acquisition?
Media behemoth the Walt Disney Company (DIS) has announced the purchase of another media company, 21st Century Fox (FOXA).
Understanding Walt Disney’s Deal with 21st Century Fox
In December 2017, the Walt Disney Company (DIS) announced its plans to buy some of the assets of 21st Century Fox (FOXA) for an equity value of ~$52.4 billion.
A Look at Electronic Arts’ Huge Player Base across Verticals
EA’s FIFA franchise remains one of the leading games worldwide. It has approximately 42 million players on console platforms PlayStation (SNE) and Xbox (MSFT).
Behind Time Warner’s Growing HBO Subscribers
n 4Q17, Time Warner’s HBO segment reported quarterly revenue growth of 13% at $1.7 billion. HBO contributes ~19.5% of Time Warner’s total revenues.
How Will Cisco’s Infinite Video Platform Target the OTT Industry?
According to Juniper Research, the value of the digital TV and video industry is expected to grow to $119 billion by 2022, up from an estimated $64 billion in 2017.
Disney’s Capital Return Policy Looks Attractive
Capital return trends Leading media mogul The Walt Disney Company (DIS) has continued to improve its capital return policy, driven by attractive dividend payments and strong share repurchase programs. In fiscal 2017, the media giant returned ~$11.8 billion to shareholders via buybacks and dividend payments, compared with $9.8 billion in fiscal 2016. In fiscal 2018, the […]
What Prompted AT&T to Merge with Time Warner?
In October 2016, AT&T (T) signed an agreement to acquire Time Warner (TWX), in which it agreed to pay $107.50 per share to Time Warner’s shareholders.
A Look at Comcast’s Strategy
Comcast’s (CMCSA) revenue grew 8% and 5% in 2016 and 9M17, respectively. The broadcast of the Rio Olympics in 3Q16 drove the 2016 numbers.
Which Stocks Have Announced $1,000 Bonuses?
In this series, we’ll be taking a look at the companies that have announced $1,000 dollar bonuses, pay raises, increased dividends, and buybacks in the last two months.
Why Did Electronic Arts Acquire Respawn Entertainment?
In November 2017, Electronic Arts (EA) announced an agreement to acquire Respawn Entertainment. Respawn is a gaming development studio.
Viacom’s Nickelodeon Remains Driving Force for Media Segment
Nickelodeon’s growing user base Viacom’s (VIAB) Media Networks segment continues to gain, thanks to the popularity of its Nickelodeon channel and its growing number of followers. The network, which targets kids aged two to 17, witnessed television subscriber growth of 22% to 602 million in fiscal 2017, buoyed by the success of strong content such as Teenage Mutant Ninja Turtles, School of […]
Which Games Are Driving Digital Downloads for Electronic Arts?
Management at Electronic Arts was surprised at the data released for full game downloads with respect to its games such as FIFA and Madden in fiscal 2Q18.
Why CenturyLink Reported Broadband Subscriber Losses in 3Q17
The top cable companies continue to show strong momentum in the US broadband market with Comcast (CMCSA) and Charter (CHTR) adding the most broadband customers in 3Q17 given the higher speeds.
Inside the Profit Margins of the 4 Biggest Gaming Companies
Analysts expect Activision to post a net margin of 14.4% in fiscal 2017, 16.9% in fiscal 2018, and 19.5% in fiscal 2019.
How the Marvel Acquisition Is Working out for Disney
Marvel acquisition helping film business The Walt Disney Company’s (DIS) acquisition of Marvel has worked out well for Disney, earning money for its Studio Entertainment segment. The latest flick, Thor: Ragnarok, has already collected more than $600 million worldwide. Blockbuster movie releases and other license fees have driven the company’s business and created a strong brand. The […]
Disney’s Pixar Holds the Key to Film Success
Pixar’s historical success The Walt Disney Company’s (DIS) Pixar continues to boost its Studio Entertainment segment with hit movie releases. To date, Pixar has produced 18 films, including Toy Story, Finding Nemo, and Cars. These movies have generated business of more than $11 billion for the company worldwide. Even its latest movie, Cars 3, released this year, […]
Will AT&T Agree to Sell CNN or DIRECTV for Time Warner Buyout?
Amid rising competition in the wireless space, AT&T (T) has its hopes in the proposed acquisition of leading content provider Time Warner (TWX).
The Aims of the AT&T-Time Warner Merger
Better TV audience targeting In seeking to merge with Time Warner (TWX), AT&T (T) is motivated by advertising prospects. For AT&T, combining Time Warner’s media assets, especially high-quality content, with its technology and massive user data should make a huge difference in its advertising business. For example, AT&T hopes that the combination will enable it […]
How Dish Views the Trend of Cable Companies Entering the Wireless Arena
Among the major cable companies, Comcast (CMCSA) has already ventured into the wireless industry by launching a wireless service.
How Comcast Is Edging Out Competitors in Triple-Play
Comcast’s (CMCSA) Cable Communications business continues to be driven by its high-speed Internet and video business.
Analysis of AT&T’s International Business
Regulators are reviewing AT&T’s proposal to merge with Time Warner in a transaction valued at $85.4 billion.
What Drives Success for Comcast’s Universal Studios
Comcast’s franchise-focused strategy In the first part of this series, we looked at how Comcast’s (CMCSA) fiscal 2Q17 results were strongly driven by the company’s filmed entertainment and theme parks businesses. In this part of the series, we’ll look at the key factors that are driving Comcast’s filmed entertainment business. Comcast’s filmed entertainment business is […]
Comparing Netflix’s Valuation Metrics with Its Peers
Netflix’s stock price closed at $183.60 on July 18. The company had a market capitalization of $79.4 billion on July 18 with an enterprise value of $81.8 billion.
Outlook for Comcast Cable’s High-Speed Internet and Business Services
In May 2017, Comcast introduced its new Wi-Fi gateway, xFi, which offers a personalized Wi-Fi experience to its users.
Why China Is Becoming an Important Market for Disney
Popularity of English-language content in China Media companies in the United States (SPY) are increasingly looking at the Chinese (FXI) market as Hollywood movies become popular there. However, there have also been concerns about box office success in the country. On June 27, The Wall Street Journal reported, citing an unknown source, that the six […]
These Key Factors Are Affecting Comcast’s Operating Costs
Comcast’s (CMCSA) programming costs rose 11.7% year-over-year (or YoY) in 1Q17. What’s been driving the rise in the company’s programming costs?
Understanding Disney’s Capital Allocation Strategy
Disney stated at the conference that it will keep investing in its businesses not just for growth but also to give superior returns to shareholders.
Disney’s Stock Price: Identifying the Key Drivers
The Walt Disney Company (DIS) announced its fiscal 2Q17 results on May 9. The company’s stock price closed at $109.58 on May 11, 2017.
Can Electronic Arts Improve Its Profit Margins in Fiscal 2018?
Electronic Arts (EA) expects its gross margin to be 74.9% by the end of fiscal 2018. It was 73.2% in fiscal 2017, 69.2% in fiscal 2016, and 68.3% in fiscal 2015.
How the Changing Regulatory Environment Could Impact Disney
Disney said in an earnings call that the US corporate tax policy needs to be changed because American companies are no longer competitive.
How Dish Network’s Subscriber Acquisition Cost Affects Its Churn Rate
Dish Network (DISH) had an average monthly pay-TV churn rate of 1.8% in 2016.
How Comcast Benefits from NBCUniversal Acquisition
M&A activity seems to be driving the media industry towards consolidation.
How Will Competitive Landscape in Media Industry Affect Comcast?
Comcast stated that the key to getting ahead of the competition has been the company’s strategy to offer products based on market segmentation.
What Electronic Arts’ Key Metrics Indicate
Revenue from EA’s international markets fell 5.0% YoY (year-over-year) from $622.0 million in fiscal 3Q16 to $588.0 million in fiscal 3Q17.
What Are EA’s Most Important Gaming Franchises?
Electronic Arts’ (EA) iconic game FIFA 17 was the best-selling console title in 2016.
How a Verizon-Charter Deal Could Impact the US Pay-TV Space
The potential acquisition of Charter Communications (CHTR) could be seen as another attempt by Verizon (VZ) to pursue revenue growth outside its traditional carrier business.
Do Low Interest Rates Inflate Asset Prices?
On January 26, financial adviser Andy Chase told CNBC’s Mike Santoli that equity valuations are at an all-time low. Chase believes that stocks provide the strongest investment opportunity in 2017.
Which Countries Will Drive Gaming Revenue for EA and Activision?
Asia-Pacific accounted for 47%, or $46.6 billion, of total gaming revenue last year.
Why Is Mobile Gaming Important for EA and Activision?
Mobile revenue for Electronic Arts (EA) rose 21% YoY (year-over-year) in fiscal 2Q17 to $149 million.
What Affects Dish Network’s Stock Price?
On January 13, 2017, Dish Network’s (DISH) stock closed at $62.27. In this series, we’ll explore Dish Network’s spectrum holdings and the broadcast spectrum auction.
Analyzing the Concentration of US Media Ownership
Time Warner (TWX) has high-quality content assets, and AT&T (T) has extensive customer relationships across the wireless, video, and fixed broadband platforms.
Understanding Charter’s Strategic Priorities
In 2016, Charter Communications (CHTR) completed its merger with Time Warner Cable and Bright House Networks.