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.
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.
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.
Why IBM Has Spent Billions in Cloud Acquisitions
IBM (IBM) intends to fuel its growth in the cloud space through the investment of billions of dollars, as well as strategic acquisitions.
EA’s Sports Titles Continue to Lead – FIFA 15 and Madden NFL
In 3Q15, Electronic Arts (EA) managed to report good revenue growth due to its major sports titles—Madden NFL mobile and FIFA 15 Ultimate Team mobile.
Electronic Arts makes history’s fastest-growing subscription MMORPG
Bioware, an operating division of Electronic Arts (EA), made Disney’s (DIS) Star Wars: The Old Republic, the fastest-growing subscription MMORPG in history.
How do the largest studios make money in motion pictures?
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 Studios develops key video game franchises
Electronic Arts’ (EA) EA Studios encompasses studios and development teams that create games and related content, franchises, and services.
Why Six Flags’ guest spending per capita improved
Six Flags’ per capita guest spending increased $2.79, or 7%, to $42.97 in 2014, primarily due to improved admissions pricing and new offerings in the parks.
Ticket pricing pushes Six Flags’ admissions revenue up
Six Flags’ (SIX) admissions revenue per capita increased by 9% in 2014, primarily driven by pricing improvements on multi- and single-use ticket offerings.
Yahoo’s position in the search market
We’ll look at Yahoo’s search market business. In the third quarter, Yahoo (YHOO) generated 41% of its revenue from the search advertising business.
Tiger Global starts new position in Mobileye
Mobileye, the Israel-based vehicle safety technology company, earned gross proceeds from its initial public offering of $1.023 billion.
Must-know: Tiger Global Management’s holdings in 3Q14
Tiger Global Management’s holdings included 48 stocks during the third quarter. The size of the fund’s US long portfolio fell slightly from $7.8 billion to $7.5 billion.
Point72 Asset Management adds to position in Kraton Polymers
Kraton is a leading global producer of engineered polymers and one of the world’s largest producers of styrenic block copolymers. The company reported sales revenue of $323.8 million in the second quarter.
Point72 Asset Management increases position in AMC Entertainment
The additional capital will support AMC’s strategic focus on more guest comfort and convenience, enhanced food and beverage, and premium sight and sound.
Point72 Asset Management raises position in Insmed
“If approved for NTM patients, we believe Arikayce would be the first and only approved inhaled antibiotic for the treatment of NTM lung infections.” – Insmed
Why ValueAct Capital starts new position in 21st Century Fox
ValueAct Capital initiated a new position in 21st Century Fox (FOX). It’s a diversified global media and entertainment company. FOX accounts for 0.67% of the fund’s first quarter portfolio. 21st Century Fox is home to a global portfolio of cable and broadcasting networks and properties.Consumer Why Twitch should boost Amazon’s business in several key ways
Variety first reported that Google (GOOG)(GOOGL) reached a preliminary agreement to buy Twitch for $1 billion. Then Business Insider reported that Yahoo (YHOO) had also made an offer to buy Twitch.
Understanding the rationale for the Covidien-Medtronic transaction
On June 15, 2014, Medtronic (MDT) and Covidien (COV) reached an agreement to merge via a scheme of arrangement. The two companies more or less offer complementary goods.
Merger arbitrage must-knows: A key guide for investors
Merger arbitrage, otherwise known as “risk arbitrage,” is an investment strategy that primarily focuses on mergers and capturing the spreads on announced deals.
A key overview of global online travel company Orbitz Worldwide
The Chicago-based Orbitz Worldwide Inc. (OWW) is a global online travel company (or OTC). It recently posted a net loss for the first quarter of 2014 although its revenue grew, driven by hotel bookings.
An investor’s guide to cyclical and counter-cyclical industries
XLY and XRT have performed better in terms of absolute returns over longer periods of three and five years
High yield bond ETFs’ performance compared to cyclical industry ETFs
During economic uncertainty, investors want steady, guaranteed returns from the Treasury instead of quick returns from price movements in equity ETFs.Technology & Communications A guide to Disney’s Consumer Products and Interactive Media segment
The businesses in the Consumer Products segment generate royalty revenue by licensing characters from its film, television, and other properties to third parties.
Why Disney’s Parks and Resorts business is a valuable growth driver
In 2013, Parks and Resorts revenues increased 9%, to $14.1 billion, and segment operating income increased 17%, to $2.2 billion