We have seen this movie before. Founder CEO hands the reins to a successor. The company stumbles. Founder returns as CEO. We expect this scenario to play out over the next 24 months at Netflix. Founder Reed Hastings will return after Ted Sarandos has had a brief opportunity to right the ship. It is game … Continue reading What’s Next For Netflix?
The effect of increased competition on Netflix (NFLX), manifested itself in a net subscriber loss for the first time in 10 years. The net subscriber loss manifested itself approximately one year later than we thought it would. Competition has never been greater on the streaming content side of the media world with Disney (DIS), Apple … Continue reading Further Media Consolidation Is Coming
Will Apple, Disney or Netflix pursue an acquisition of NewCo? Last year we wrote that AT&T should sell WarnerMedia. On Monday AT&T (tkr: T) led by John Stankey agreed to spin-off its WarnerMedia asset and to combine it with John Malone's Discovery (tkr: DISCA) in a new, publicly-traded company led by Discovery CEO David Zaslav. … Continue reading AT&T Took Our Advice But It Does Not Solve The Scale Problem
As we wrote in September of last year, Netflix (tkr: NFLX), Should Acquire Video Game Publishers. Netflix teased a video game strategy on tonight's earnings call. Disney (tkr: DIS), proved the model on the feature film side with acquisitions of Pixar, Marvel and Lucasfilm. The video game space will prove no different. After all, hit … Continue reading Netflix & Video Games Can’t Happen Soon Enough
We migrated off of AT&T's (tkr: T) mobile plan over the weekend in favor of Alphabet's (tkr: GOOGL), Google Fi mobile phone service. Google Fi charges less for unlimited calls and texts: Google Fi charges $20 for unlimited calls and texts per user per month vs. $25 for AT&T; Google Fi charges less per GB … Continue reading AT&T Is Caught In A Pickle. Google Is Benefitting.
Disney recently refined its segment reporting into two major categories: "Media and Entertainment Distribution" and "Parks, Experiences and Products" detailed in this filing. We have advocated for a separation of Parks from Media, most recently in March 2020. The requisite leadership is in place to manage two separately-traded public companies post-spin. Disney's Parks, Experiences and … Continue reading Disney Getting Closer To Spinning Parks from Media?
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 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
AWS, Azure and GCP are to thank in large part for the proliferation of applications powered by broadly-defined AI. The big three remote server platforms have made it increasingly easy for companies of all sizes from all industries to build applications that incorporate core AI, machine learning, deep learning and related capabilities. A wide variety … Continue reading Artificial Intelligence Is Electricity 2.0
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