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.
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.
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.
What Is Netflix’s Content Licensing Strategy?
Content licensing is usually for a fixed number of years, and Netflix (NFLX) pays for an exclusive subscription video-on-demand (or SVOD) license for a given title.
Netflix’s View: Original Content versus Content Licensing?
Original programming Netflix (NFLX) expects to spend ~$5 billion on content acquisition in 2016 and $6 billion on content in 2017. Currently, 10% of its content spending is on original content. The company would like to raise that amount to 50%. Netflix believes original content will strengthen its brand and drive up viewing hours. Netflix […]
Disney’s Cable Networks: What You Can Expect for Affiliate Fees
Media companies like The Walt Disney Company (DIS) mainly derive their revenues from affiliate fees and advertising.
What Factors Could Be Impacting Disney’s Stock?
On November 2, 2016, The Walt Disney Company’s (DIS) stock closed at $92.39. The company’s stock price has fallen 13.6% year-to-date (or YTD) and 3.3% in the past three months.
Rockwell Collins Acquires B/E Aerospace in a Deal-Making Weekend
On October 23, Rockwell Collins (COL) announced that it intends to acquire B/E Aerospace (BEAV) for a total consideration of $8.3 billion. Within Rockwell Collins, B/E Aerospace will operate as its new Aircraft Interior Systems segment.
Synergies of the Charter–Bright House–Time Warner Cable Merger
Early this year, Charter Communications (CHTR) completed its merger with Time Warner Cable and Bright House Networks, making Charter the second-largest US cable player.
What Is the Netflix Pricing Strategy?
Netflix offers its subscribers a variety of price tiers so they can choose the tier they want. It offers more value at the higher-priced and middle tiers.
AT&T Has Taken a Different Approach to Diversify Wireless Business
Like Verizon, AT&T (T) also saw a revenue decline in its US wireless business in the last quarter on a year-over-year basis.
Wondering Why Comcast Licensed X1 to Cox? Here’s Why
Comcast stated that the licensing fees earned from this strategy with Cox would give the company “additional scale in development.”
Digital Revenues Continue to Drive Activision Growth
In fiscal 2Q16, Activision’s digital revenues accounted for 72.7% of total revenues—an increase from 54.5% in fiscal 2Q15 and 63.6% in fiscal 1Q16.
Why Is Comcast Targeting China?
Comcast (CMCSA) considers China a market that will generate a significant profit for the company in the long term.
Why Does Janus Think Inflation Is on the Rise?
In the “Janus Market GPS,” the team had outlined its belief that a low unemployment rate signaled tighter labor market conditions.
How Disney Is Managing Its Valuation Metrics
Disney stands out from its competitors in the media industry due to its large amount of intellectual property.
What are the Valuation metrics for Dish?
Valuation metrics In this part of the series, we’ll look at some key metrics investors can use to compare the values of media companies. Specifically, we’ll look at media valuation multiples. Some valuation metrics include the PE (price-to-earnings), EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization), PCF (price-to-cash flow), and PFCF (price-to-free […]
United Kingdom: A Stronghold Market for Viacom
The Channel 5 acquisition has led to Viacom (VIAB) gaining access to nearly 100% of the United Kingdom’s television audience, particularly for the Nickelodeon brand.
Electronic Arts Has a Gaming Portfolio across Genres
According to Statista, shooter and action games dominate video game sales and account for 24.5% and 22.9% of total sales, respectively, in the United States
Video Gamers Cross All Age Groups in the US
According to the Entertainment Software Association (or ESA), 29% of all video game users are between 18–35 years of age, whereas 27% of players are below the age of 18.
Action and Sports Genres Dominate the Video Gaming Space
According to Statista, shooter and action games dominate video game sales and account for 24.5% and 22.9%, respectively, of total sales in the US.
The History of the Gaming Industry
Starting with a modest computer game developed in the 1940s, the video gaming industry has exploded as graphics and technology continue to advance. This series will look at the various trends and highlights that impact the gaming sector.
How Is Disney’s Acquisition Strategy Reaping Rewards?
On May 20, The Walt Disney Company announced that Marvel’s Captain America: Civil War was set to surpass $1 billion in earnings at the global box office.
How Could Foreign Regulations Impact Netflix?
Netflix and Amazon’s Prime Instant Video service could be forced to ensure that 20% of their content catalogs consist of European content.
What Is Disney’s Core Strategy for Its US Theme Parks Business?
The Walt Disney Company’s (DIS) theme parks and resorts business is doing extremely well in the United States.
Charter Completes Merger with Bright House and Time Warner Cable
The merger of Charter Communications (CHTR), Time Warner Cable (TWC), and Bright House Networks was completed on May 18, 2016.
Comcast Business Services Segment Continues Its Growth Trajectory
Comcast is increasingly focusing on its Business Services segment, which has three growth engines: small business, mid-sized business, and enterprise.
Why Is Time Warner Increasing Its Focus on China?
Time Warner stated at a Deutsche Bank (DB) investor conference early last month that it expects the number of movie screens in China to increase by about 30% in the next two years.
Key Valuation Metrics for Disney: How Do They Compare?
Disney stands out from its competitors in the media industry because of its vast intellectual property.
Key Valuation Metrics of the Media Sector
We prefer EV-to-EBITDA and PCF over the other multiples when comparing valuation of media conglomerates with different structures.