Disney's Parks business is preventing the "Content" side from realizing its full valuation potential. Look no further than Netflix as a proxy. Disney's (tkr: DIS), "Content" business is significant. "Parks" is large enough to stand on its own. A simple run rate calculation on Disney's December quarter "Content" Operating Income figure of $1.9 billion implies … Continue reading Disney Ought to Spin Off the Parks Business
AT&T's acquisition of Time Warner seemed like a good idea at the time. That is no longer true. Tickers mentioned: AAPL, AMZN, CMCSA, DIS, GOOG, NFLX, T, VZ AT&T's $85 billion acquisition of Time Warner seemed like a good idea when it was first kicked around a few years ago. AT&T would differentiate its fiber … Continue reading AT&T Should Sell WarnerMedia
The asset management game is all about Assets Under Management ("AUM"). The entertainment game is all about "IP". By the way, Bob Iger likes Bond. Asset Management & Entertainment Share a Hunger for Assets Over the past decade asset managers have shifted away from active management and alpha generation in favor of index funds and … Continue reading BlackRock and Disney Have This in Common…
Episodic TV carries a superior risk/reward compared to feature films. The streaming wars featuring Disney (tkr: DIS), Netflix (tkr: NFLX), Apple (tkr: AAPL), Amazon (tkr: AMZN), AT&T (tkr: T), and others will be won by the content producers that capture the most subscribers over a measurable period of time. Questions that content producers must answer … Continue reading Episodic Television Is the Key to Winning the Streaming Wars
We are working on a project that has me thinking about the "long tail". For those who took Statistics you may recall that the long tail is the portion of the distribution where occurrences appear far away from the distribution's center. A long tail business strategy is one where the service provider makes hard to … Continue reading The Long Tail Will Differentiate You
The Death of Netflix and the Rise of DisneyPlus We have been negative on Netflix for years, first publishing our disdain for the expensive middle man in December 2017. We have always viewed Disney as the cream of the crop in the original content world - having the best content portfolio across legacy Disney characters, … Continue reading The Death of Netflix
Disney May Be the New King of the Content Jungle. Disney+ Coming to A Screen Near You in November. We've previously written in these pages that "Content Is King". Similarly, back in 2017 we posited that "Netflix Loses in A Disney Fox Deal". Disney - owner of the world's best content library - was in … Continue reading Disney – New King of the Jungle?
Video, Peer-to-Peer (“P2P”) payment services and mobile devices largely drive data creation of approximately 3 billion gigabytes per day. How do you leverage these macro trends in your business?
When speaking or writing about Apple we have spent much of the past 18 months beating up on the iPhone. Yesterday's "Apple Event" didn't engender confidence in the firm's content strategy. Anchored by a curated, walled garden approach, Apple's strategy seems mired in the early 2000's at a time when young people have migrated to … Continue reading Apple’s Strategy – The Good, The Bad & The RetroPremium
Not Apples to Apples but the Below Tells A Story.. YouTube (GOOG): More than 1.9 billion logged-in YouTubers each month. 200 million+ logged-in users watch people play games on YouTube each day. (YouTube/Stadia has one foot in today and one in tomorrow with traditional content and video games on the platform). Netflix (NFLX): 139 million … Continue reading Content Wars & Investing for Tomorrow