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.
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.
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.
Why Is Apple So Concerned about Currency Fluctuations?
Last month, Apple (AAPL) declared its fiscal 1Q16 results, reporting revenues of $75.9 billion. Revenues rose 2% YoY (year-over-year) and 8% on a constant currency basis.
Low Theatrical Revenues Pull Down Warner Bros. Revenue
Time Warner’s (TWX) Warner Bros. had revenues of $13 billion in fiscal 2015, up by 4% year-over-year. However, Warner Bros. had a 13% year-over-year decrease in revenues in fiscal 4Q15.
Why EA’s Trading below Moving Averages after Q3 Earnings
Electronic Arts (EA) generated investor returns of 17.8% in the trailing 12 months and -6.6% in the trailing one month
What Are Analysts’ Recommendations for Yahoo?
Out of 43 analysts covering Yahoo, 26 have “buy” recommendations, none have “sell” recommendations, and 17 have “hold” recommendations on the stock.
Future Expectations and Consumer Sentiment Rise
With improved consumer sentiment, there may be greater consumer spending in the economy, which may translate into faster economic growth.
Why Is Comcast Offering Products Based on Market Segmentation?
By offering different products like triple-play services, Comcast is catering to millennials, who want different content and can be heavy video viewers.
A Brief Overview of Comcast’s Business Segments
Comcast (CMCSA) has two primary business segments, Cable Communications and NBCUniversal.
History of Comcast
In 1969, American Cable Systems was renamed Comcast Corporation.
What Seasonal and Cyclical Factors Impact NBCUniversal?
The advertising revenues for Comcast’s (CMCSA) NBCUniversal Cable Networks and Broadcasting Television business are susceptible to advertising cyclicality and program ratings.
How Comcast Acquired NBCUniversal
The advertising revenues for Comcast’s NBCUniversal Cable Networks and Broadcasting Television segment are susceptible to advertising cyclicality and program ratings.Technology & Communications Must-know factors that could drive future growth at Disney
Disney considers itself a creative content company, and creative excellence is the key to its success. It expects to continue to invest both organically and inorganically.
How Is Netflix Performing in Japan?
Netflix considers Japan to be a brand-sensitive market. Once it establishes its brand, it expects its connection with the Japanese audience to be long term.
Why Is Hulu Shying Away from International Markets?
Hulu CEO Mike Hopkins said at an industry conference in Cannes, France, that Hulu was not looking to expand into international markets any time soon.
Hulu’s Reinvention of Itself: A Closer Look at Business Strategy
Currently, Hulu’s free service is ad-supported while its $7.99-per-month service provides content with fewer ads.
How Activision Blizzard’s Call of Duty Performed in 3Q15
Call of Duty: Black Ops II, a three-year-old game, witnessed engagement growth on a quarter-over-quarter basis to nearly 12 million monthly active users in 3Q15.
Assessing Disney’s Business Segment Performance in Fiscal 2015
Disney’s (DIS) Media Networks segment was the biggest contributor to its revenue, at 44% or $52.5 billion, in fiscal 2015.
Time Warner: 3Q15 Business Segment Performance
Time Warner announced its 3Q15 results on November 4, 2015. Warner Bros. was a major contributor to the revenue of Time Warner in 3Q15, accounting for 47%.
Netflix Prefers Original Content over Content Licensing
Netflix holds the content licensing rights to its original content, but this original content is currently produced by outside studios like Disney’s ABC Studios.
Macroeconomic Factors Affecting Technology Stocks in 2015
In this series, we’ll analyze the YTD performance of firms in the Technology, Hardware, and Storage subsector and that are a part of the Technology Select Sector SPDR ETF (XLK).
Verizon Sees Demand for Skinny Bundles
Verizon launched its Custom TV service in April. A skinny bundle service, it gives more choices to customers, allowing them to select their TV channels
Disney’s Parks and Resorts: Shanghai Disneyland’s Capex Rising
Disney is incurring significant pre-opening expenses for Shanghai Disneyland (FXI), which will be unveiled in spring next year.
A Look at Disney’s Advertising Revenues
The Walt Disney Company’s (DIS) advertising revenues made up 37% of its Media Networks segment’s total revenues of $5.7 billion in fiscal 3Q15.
Disney’s ESPN: Revenues under Competitive Pressure
ESPN is a part of Disney’s Media Networks segment. Affiliate fees are major component of this segment and are under pressure due to subscriber loss.
Hulu: Change of Business Strategy
Hulu is planning to launch an ad-free service priced at $12–$14 per month later this year. Hulu is also looking at programmatic ad buying to better monetize its content.
AT&T’s All in One Plan Offerings
Since the merger, AT&T has extended bundled video and wireless offerings, such as its All in One Plan, which is being offered to DIRECTV and AT&T customers.
Instagram Ads Exceed Facebook in Click-Through Rate
Instagram reported its click-through rate of 1.50% for the month of August to date. This is almost double Facebook’s rate. Instagram clearly has the potential to churn out big money for Facebook.