Media & Entertainment

Disney stands out from its competitors in the media industry because of its vast intellectual property.

We prefer EV-to-EBITDA and PCF over the other multiples when comparing valuation of media conglomerates with different structures.

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.

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.

Electronic Arts (EA) generated investor returns of 17.8% in the trailing 12 months and -6.6% in the trailing one month

By offering different products like triple-play services, Comcast is catering to millennials, who want different content and can be heavy video viewers.

Comcast (CMCSA) has two primary business segments, Cable Communications and NBCUniversal.

In 1969, American Cable Systems was renamed Comcast Corporation.

The advertising revenues for Comcast’s (CMCSA) NBCUniversal Cable Networks and Broadcasting Television business are susceptible to advertising cyclicality and program ratings.

The advertising revenues for Comcast’s NBCUniversal Cable Networks and Broadcasting Television segment are susceptible to advertising cyclicality and program ratings.

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.

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.

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.

Disney’s (DIS) Media Networks segment was the biggest contributor to its revenue, at 44% or $52.5 billion, in fiscal 2015.

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 holds the content licensing rights to its original content, but this original content is currently produced by outside studios like Disney’s ABC Studios.

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 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 is incurring significant pre-opening expenses for Shanghai Disneyland (FXI), which will be unveiled in spring next year.

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.

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.

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.

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.

Netflix is grabbing eyeballs with its original content and taking advantage of an audience prone to hyper-consumption or binge viewing.

In the camcorder market, GoPro (GPRO) has the leading market share of 47.50%. It’s followed by ION, Sony (SNE), and Polaroid.

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.

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.

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.

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.

In the MoffettNathanson Media & Communications Summit on May 13, the company highlighted its intellectual properties portfolio.

An integrated business model helps Walt Disney (DIS) utilize value created by its intellectual properties such as Frozen across its different segments.

The Gigabit Pro service can provide much faster speeds than those offered by Verizon (VZ) FiOS, AT&T GigaPower, and Google Fiber.

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.

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.

Other important merger spreads include the deal between Time Warner Cable and Comcast as well as the merger between Pharmacyclics and AbbVie.

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.

In this space, companies whose franchises have yet to make a mark spend considerably on marketing to raise customer awareness.

Bioware, an operating division of Electronic Arts (EA), made Disney’s (DIS) Star Wars: The Old Republic, the fastest-growing subscription MMORPG in history.

The largest studios are owned by conglomerates like 21st Century Fox (FOXA) whose studio had the largest 2014 domestic box office market share.

Electronic Arts’ (EA) EA Studios encompasses studios and development teams that create games and related content, franchises, and services.