7 Things to Know About Investing in Media and Entertainment Stocks

November 27, 2019

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Media and entertainment stocks include companies in the business of publishing, broadcasting, radio, media, digital offerings, etc. The industry falls under the cohort of the communication services sector. Predominantly, entertainment and media sector stocks are about having mainstream content such as Marvel or DC, Game of Thrones or Narcos, Avengers or Fantastic Four and whatnot. As Generation Y and Z are more interested in entertainment through the likes of Netflix and Amazon Prime rather than on TV, it has triggered a fundamental shift in the industry, and large conventional players are trying to navigate this path which has been disrupted by the new-age solutions and innovative products.

Spotlight

CGTN

China Central Television (CCTV) rebranded its international networks and digital presence under the name “China Global Television Network” (CGTN) as part of a push to consolidate its worldwide reach. With the launch of China CGTN on December 31, 2016, a new international satellite news channel entered the global news market. CGTN consists of six channels in five languages, including a 24-hour English-language news service and a documentary channel, with a strong focus on delivering across multiple platforms ‘neutral, objective reporting’, and promising to ‘create a better understanding of international events across the world.

OTHER ARTICLES

Microgaming Collaborates With Inspired Entertainment To Enhance Gaming Experience

Article | April 17, 2020

As part of the deal, both the firms will work together to enhance the network capacities of each other while also supporting the expansion plans significantly. It will diversify the Microgaming’s product offerings such as slots, virtual sports, table games, etc. and will give a boost to the outreach plans of Inspired’s content. Inspired will offer 20 of its most innovative and widely played online slot games through Microgaming’s interface. The games offered will include Anubis Wild Megaways™, Prison Escape™, and Stacked Fire 7s™ along with the infusion of virtual and table games in the near future.

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Is Microsoft moving Windows Mixed Reality VR/AR towards consumers?

Article | April 15, 2020

Recently, Bill Stillwell of Xbox fame left the gaming division to join Windows Mixed Reality, to work on "world-class consumer AR/VR experiences in the Microsoft ecosystem." Interesting. For a couple of years, Microsoft couldn't resist demonstrating its unprecedented HoloLens augmented reality tech at every single event, it felt like, using Minecraft and other random Xbox properties to showcase the potential therein. Fast forward five years to 2020 and HoloLens remains firmly in the realm of big business and the military, powering next-generation training, awareness, and productivity solutions.

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VIRTUALIZATION

Netflix versus Amazon Prime Video – depth versus breadth

Article | June 10, 2021

The first half of 2021 has been a year of continued change and disruption for subscription video. The global incumbent subscription video on demand (SVOD) leaders, Netflix and Amazon Prime Video, have been busy signalling to the financial markets how they intend to entrench their market dominance in light of the ongoing market acquisition pushes unleashed by the D2C disruptors following the D2C ‘big bang’ moment of Q4 2019 – Q2 2021. Netflix announced in January that it was no longer going to borrow on the financial markets to fund its day-to-day operations – specifically for its content acquisition budget, which is now driven predominately by commissioning original content for its service. This leaves the SVOD leader with $14.9 billion of outstanding long-term debt to service as it seeks to live within its means by commissioning future content from its ongoing cashflow. In Q1 2021 alone Netflix spent $500 million on servicing this debt pile versus $1.7 billion in net income generated over the same period.

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VIRTUALIZATION

This time Amazon really does have Bond in its sights

Article | May 20, 2021

MGM, which holds the largest film and TV library in Hollywood, is finally in play – and likely to be acquired by tech major and video streaming behemoth Amazon. With a rumoured price tag of $9 billion, the deal, while substantial, is merely equivalent to 8.3% of Amazon’s Q1 2021 earnings of $108.5 billion. Indeed, the 44% year-on-year (YoY) increase for its Q1 results alone would pay for the deal more than four times over. When it comes to investment capital to deploy, the tech majors led by Amazon and Apple are in a financial class of their own. This is the kind of deal that helps to explain why AT&T was so keen cut its losses and incur a $66 billion loss on its Warner Media assets by merging the former Time Warner media major with Discovery for $43 billion in cash and receiving 71% in equity in the new combined entity in return. It also follows on from Amazon’s 15.4x increase in what it is willing to pay to secure exclusive NFL Thursday Night Football coverage for its US Amazon Prime customers.

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Spotlight

CGTN

China Central Television (CCTV) rebranded its international networks and digital presence under the name “China Global Television Network” (CGTN) as part of a push to consolidate its worldwide reach. With the launch of China CGTN on December 31, 2016, a new international satellite news channel entered the global news market. CGTN consists of six channels in five languages, including a 24-hour English-language news service and a documentary channel, with a strong focus on delivering across multiple platforms ‘neutral, objective reporting’, and promising to ‘create a better understanding of international events across the world.

Events