文档内容
Article A
Digital Gold Rush: Why Media Companies Matter
We should all be interested in developments in the Media market. The industry
is now thriving, due to an increased viewership of on-demand television shows
and new digital distribution channels. There is a lot of money to be made here
for the wise investor.
Market leaders - Movie Now, Explore Entertainment, Dream Productions -
have continued to grow in revenues and profitability year on year. My view is
that we can expect more of the same for at least another 5 years.
This growth has occurred even in the face of litigations which seem to
continuously impact the industry. Due to the potential for further legal issues, I
would suggest investing equally in each of these companies as a group.
Competition is so tight that when one experiences difficulties, the others are
quick to capitalise.
Large telecom players have also greatly benefitted the industry. Their deep
pockets have fuelled the development of new products and innovation, which
is great for the consumer. The increased likelihood of a buyout from these
companies is also a huge positive for any investor.
Let me know what you think in the comments section and as always, keep
reading!Explore Entertainment Income Statement
(figures in $millions, except per share amounts)
(
Year 3 (current Year 2 Year 1
year)
Revenues 2811.8 2735 2646
Expenses and
Losses
Salaries 511.1 512 513
Cost of Goods Sold
825 822 828
Office Expenses 216.1 220 218
Advertising 123 121 125
Other 184 190 157
Per share information:
Basic net earnings
(profit) per $46.90 $44.20 $39.90
common share
Cash dividends
declared per share $1.40 $1.27 $1.15
of common stockMedia Market Research
(
Market Analysis
Explore Entertainment
Movie Now
QuikTV
StreamService
Modern Media
Dream Productions
Explore
Dream Modern StreamServi
QuikTV Movie Now Entertainme
Productions Media ce
nt
Employees 44,681 23,617 14,397 16,771 22,039 24,800
Profit (100,000's) $13,261 $5,314 $3,167 $2,818 $5,245 $9,526
Revenue (100,000's) $47,362 $35,425 $28,794 $12,000 $15,427 $28,118
Leading US media companies by market share
Dream Productions Modern Media StreamService
Other Movie Now Explore Entertainment
16%
26%
9%
13%
20%
16%Article B
UK World Business Markets Technology Science
Why the next 12 months will see an
increase in telecom and media mergers
Global leaders meet in
New York for annual
economic summit
Global climate deal off to
a promising start
The recent rise in mergers and acquisitions between telecommunications and
media industries is showing no sign of slowing down.
Powered by recent deregulations, the fusion of existing telecom and media giants
is largely driven by the demand for wireless distribution channels that reach a
younger audience on multiple platforms.
Leading telecom company HPP Communications is facing increasing competition
from media companies Dream Productions and Modern Media - two online video
streaming services who have taken the market by storm and saw their profits rise
steadily last year.
Dream Productions has continued to dominate the already saturated market since
being acquired by telecoms giant BlueSky six months ago for $109 billion. They
saw their profits rise after a litigation case against MovieNow regarding a
misselling of promised download speeds.
However, with wireless service no longer being the high-growth business it used
to be, finding new customers is hard and competition is tight. In fact, for three of
the six big wireless carriers, revenues have decreased over the past year (Movie
Now, QuikTV, StreamService).