Category: Media & Entertainment

The Marriage of Big Tech and Big Government

The Marriage of Big Tech and Big Government

A Big Tech vs. Big Government showdown is far less likely than a marriage of the titans. Whether it be Google's search monopoly, the Facebook/ Twitter/ TikTok social media oligopoly, the AWS/ Azure/ GCP oligopoly, the App Store/ Google Play duopoly, or the iOS/Android duopoly, the amount of power and influence concentrated among the world's … Continue reading The Marriage of Big Tech and Big Government

YouTube vs. Netflix

YouTube vs. Netflix

YouTube is virtually the same size as Netflix from a Revenue standpoint. Netflix will finish 2020 with Revenue of approximately $25 billion. YouTube will finish 2020 with combined Ad Revenue and Subscription Revenue of approximately $22-23 billion. The two operations share similar revenue growth rates. Thus, if Netflix is worth $227 billion, what is YouTube … Continue reading YouTube vs. Netflix

Apple’s Next CEO Ought To Be An Innovator

Apple’s Next CEO Ought To Be An Innovator

Apple CEO in-waiting Jeff Williams is a Tim Cook clone. We argue that Apple's next Chief Executive ought to be a risk-taking, product-focused CEO that conducts him/herself with a sense of urgency to drive Product & Services growth. Another caretaker CEO would be less than optimal. Companies mentioned: Alphabet (GOOG), Amazon (AMZN), Apple (AAPL), Cerner … Continue reading Apple’s Next CEO Ought To Be An Innovator

Don’t Expect AT&T to Sell WarnerMedia In The Near-Term

Don’t Expect AT&T to Sell WarnerMedia In The Near-Term

A WarnerMedia sale is not likely to happen before Q4 2021. A WarnerMedia sale is likely to occur, but not before calendar Q4 2021. The WarnerMedia business unit is a significant drag on AT&T's (tkr: T) ability to invest in its core, capital intensive, distribution/data/fiber business. Disney (tkr: DIS) is the natural buyer. Apple (tkr: … Continue reading Don’t Expect AT&T to Sell WarnerMedia In The Near-Term

Disney & Product Market Fit

Disney & Product Market Fit

You may have heard the term "Product Market Fit" coined by Andy Rachleff. I'm not sure I've seen a better example of "PMF" than the marriage of Walt Disney's world-class content library with a service delivery model that is 100% aligned with consumer preference. Disney content is available across its three SVOD properties: Disney+, Hulu … Continue reading Disney & Product Market Fit

AWS, Azure & GCP Will Benefit from Their Respective Cloud Gaming Services

AWS, Azure & GCP Will Benefit from Their Respective Cloud Gaming Services

AWS, Azure and GCP - the respective cloud platforms for technology giants Amazon (AMZN), Microsoft (MSFT) and Alphabet (GOOG) - will benefit from each company's cloud gaming service. Similar to exercising one's body, cloud platforms benefit from use. Cloud gaming is a recent use case that should further strengthen the leading cloud platforms: AWS, Azure … Continue reading AWS, Azure & GCP Will Benefit from Their Respective Cloud Gaming Services

New IBM CEO Arvind Krishna Understands the Value of Spin-Offs

New IBM CEO Arvind Krishna Understands the Value of Spin-Offs

IBM plans to spin off the Managed Infrastructure Services business within its Global Tech Services ("GTS") segment (approximately $19B TTM revenue through June 2020). Doing so will provide more air time to the acquired RedHat OpenShift (IBM's "Hybrid Cloud" strategy) and cognitive computing businesses. Post-spin, the growth in these businesses will make a greater revenue … Continue reading New IBM CEO Arvind Krishna Understands the Value of Spin-Offs

Amazon and Facebook Are Killing Google’s Ad Biz One Bite at A Time

Amazon and Facebook Are Killing Google’s Ad Biz One Bite at A Time

It is no great mystery as to how or why Google's Ad business is losing share to Amazon and Facebook. People are increasingly conducting product searches on Amazon and are entertaining themselves on Instagram. Thus, advertisers increasingly want to be on Amazon and Facebook. Video game platforms are another competitor Google should be concerned with … Continue reading Amazon and Facebook Are Killing Google’s Ad Biz One Bite at A Time

Muscles, Viruses, Nature and People Adapt. So Do The Best Leadership Teams.

Muscles, Viruses, Nature and People Adapt. So Do The Best Leadership Teams.

WarnerMedia ("WM") and AT&T (tkr: T), leadership teams should take note. WM/AT&T completely botched its summer movie release schedule, failing to adapt to the post-COVID reality. The company took the "wait-and-see" approach rather than controlling that which it could. The result? Market share lost to Netflix and DisneyPlus. WarnerMedia's summer tentpole film - Tenet - … Continue reading Muscles, Viruses, Nature and People Adapt. So Do The Best Leadership Teams.

Perception Is Everything

Perception Is Everything

Investors finally may be valuing Amazon as the AI-powered, massively-scaled, market-leading Technology company that it is. We could make the case that AWS and Amazon Prime combined are worth $1.5 trillion (a 20x revenue multiple applied to each). This valuation would imply that the "Retail" operation (ex-Prime), including Whole Foods, Amazon Go, Amazon Pharmacy, Amazon … Continue reading Perception Is Everything