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.
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.
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.
What Is Bankruptcy Investing?
Informed investors can profit from businesses that have filed for bankruptcy. A chapter 11 bankruptcy gives a company a second chance to revive its business.
The Must-Know Business Trends Affecting Netflix
Netflix is grabbing eyeballs with its original content and taking advantage of an audience prone to hyper-consumption or binge viewing.
GoPro’s Market Shares and Earnings Trend
In the camcorder market, GoPro (GPRO) has the leading market share of 47.50%. It’s followed by ION, Sony (SNE), and Polaroid.
Netflix Is Slaying the Competition with Pricing
Netflix pricing is the lowest among all video streaming service players. Its basic plan of $7.99 is propelling the company’s streaming membership growth in the United States.
Disney Merges Disney Consumer Products and Disney Interactive
On June 29, Disney announced it will merge two of its stand-alone segments into one. Disney Consumer Products and Disney Interactive will become Disney Consumer Products and Interactive Media.
A Look at Disney’s Studio Entertainment Segment
Disney’s Studio Entertainment segment had revenues of $1.7 billion in 2Q15, down 6% from 2Q14. The segment had operating income of $0.4 billion, a 10% fall from 2Q14.
What Does Facebook’s High Price-to-Earnings Ratio in May Tell Us?
In May 2012, Facebook’s stock price was $38, and its PE ratio was 80.0 x. The ratio reached an all-time high of 7,930x, when net income dropped to $53 million that year.
New Charter’s Footprint: Better Position to Reach Customers
New Charter is the proposed merged entity. The company will include networks of some of the largest cable operators in the US.
The Walt Disney Company Discusses Acquisitions and Strategy
At a May 13 MoffettNathanson event, Walt Disney’s (DIS) senior vice president of investor relations, Lowell Singer, discussed the company’s acquisitions.
The Walt Disney Company Weighs In on Its Intellectual Properties
In the MoffettNathanson Media & Communications Summit on May 13, the company highlighted its intellectual properties portfolio.
Disney Monetizes Frozen in Multiple Segments in 2Q15
An integrated business model helps Walt Disney (DIS) utilize value created by its intellectual properties such as Frozen across its different segments.
Gigabit Pro: Comcast Internet Offering Delivers up to 2 Gbps
The Gigabit Pro service can provide much faster speeds than those offered by Verizon (VZ) FiOS, AT&T GigaPower, and Google Fiber.
Identifying and analyzing a typical cash merger arbitrage spread
What are the components of a risk arbitrage spread? There are a number of factors that figure into a trade. Let’s look at a typical cash deal first.
Merger arbitrage must-knows: A typical stock merger spread
Not all deals are cash deals, however. Often companies will issue stock in lieu of giving cash for a deal. This adds a layer of complication to the process and also some risk factors we need to consider.
The Kraft–Heinz Merger and Material Adverse Change, Part 3
Other important merger spreads include the deal between Time Warner Cable and Comcast as well as the merger between Pharmacyclics and AbbVie.
Should You Invest in Electronic Arts?
Along with its move toward the digital space, console upgrades are the reason Electronic Arts stock returned 66% to shareholders in 2013 and 105% in 2014.
Electronic Arts Game Portfolio Includes Some Top Franchises
In this space, companies whose franchises have yet to make a mark spend considerably on marketing to raise customer awareness.