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10 Biggest Companies Behind Upcoming Movies and TV Shows

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Trish Novicio
·11 min read
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In this article, we will take a look at the 10 biggest companies behind upcoming movies and T.V. shows. You can skip our comprehensive analysis of the entertainment and streaming industries and go directly to the 5 Biggest Companies Behind Upcoming Movies and TV Shows.

The COVID-19 was an unforeseen health crisis that caused chaos in every aspect of the global economy, including the media and entertainment industries. The entertainment industry, which was already facing the onset of new trends amid the rise of streaming services, saw huge changes over a period of few months. In an analysis from Motion Picture Association's THEME Report, the global home/mobile entertainment market revenue climbed 23% in 2020 as compared to 2019, reaching $68.8 billion in 2020, driven by the digital market, which increased 33% in the U.S. and 30% outside the U.S.

During the pandemic, the movie industry underwent a drastic transformation. Although it's uncertain what the future holds for movie theaters once the pandemic is over, Hollywood has learned how to adapt to the changing times. Film and T.V. shows had delayed scheduled production, but this also gave rise to embracing technology in producing films. Some of the long-awaited Hollywood film blockbusters, such as IMAX Corporation's (NYSE: IMAX) "Fast 9," and "A Quiet Place Part II," Paramount Picture's "Top Gun: Maverick," and Sony Picture's "No Time to Die," will be released in the second half of 2021.

From Big Screens To Stream-at-Home Services

After a year of closure, AMC Entertainment Holdings, Inc. (NYSE: AMC) and Cinemark theaters reopened several locations, including Los Angeles County, in March 2020. Cinemark Holdings Inc. (NYSE: CNK)'s stock has risen 11.25 percent in the last month since New York Governor Andrew Cuomo tweeted that New York City cinemas will reopen on March 5th with only 25% capacity.

While cinemas have reopened in some key markets in the U.S., movie production and consumption have undergone a massive revamp to reduce losses and increase revenue. For example, media and entertainment giant WarnerMedia will stream all of its first-run movies on HBO Max at the same time as they are released in theaters in 2021. It will be the same for the Disney+ streaming service. The transition to streaming services is largely due to how content is made; with lower production costs, a studio's risk decline for delivering that content. In 2019, Disney produced the final Star Wars film, "The Rise of Skywalker," which cost the company approximately $256 million, making it one of the most expensive movies ever. This year, Disney released the computer-animated fantasy film "Raya and the Last Dragon" with a budget of only $150 million. On the other hand, Dune, which will be released on HBO Max and in theaters in 2021, costed about $165 million to produce.

The Rise of the Biggest Streaming Services

The biggest companies behind upcoming movies and T.V. shows are among the biggest industries that benefited during the pandemic. With millions of people stuck at home, Netflix and chill became part of the new normal. Netflix, Inc. (NASDAQ: NFLX) crossed 195 million in global subscriptions in 2020. It had total revenue of $25 billion in the full year. The stock has gained 29.2% in the last twelve months.

The Walt Disney Company (NYSE: DIS), one of the most prominent studio companies globally, jumped into the premium T.V. market. After 16 months of launch, Disney+ tops 100 million subscribers as of March 2021. After its launch in November 2019, the subscription service has seen a steady increase in subscribers. Disney previously confirmed that new Marvel, Star Wars, and Disney shows and films would be available on the streaming platform in the coming years. On the other hand, Hulu reached 39.4 million paid subscribers, an increase of 30% from 2019. ESPN+, the multimedia sports channel under The Walt Disney Company, also reached 12.1 million paid subscribers in the same quarter, an 83% increase from 2019. Shares of DIS jumped 83% over the past twelve months.

In May 2020, AT&T Inc.'s (NYSE: T) WarnerMedia division unveiled its HBO Max streaming service. In its first-quarter 2021 earnings report, it announced it had nearly 40 million U.S. subscribers. HBO Max is set to launch in 60 markets outside of the United States this year, including 39 Latin American and Caribbean territories in late June and 21 European territories in the second half. Shares of T fell 4.10% over the past twelve months.

This is only the start of the new normal for the film and T.V. industry. Deloitte reported that 22% of customers had paid to rent or watch a premium video-on-demand (PVoD) movie during the early stages of COVID-19 lockdown in a Digital Media Trends survey, and 90% of those said they would do so again.

The movie and T.V. industries have been greatly impacted by the pandemic recession but were able to adapt in a matter of months to prevent further financial loss. The entertainment industryisn't the only one facing the roller-coaster of change. The entire hedge fund industry is also feeling the reverberations of the changing economic landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn't keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey's research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th, 2021, our monthly newsletter's stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017, and they lost 13% through November 16th. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

 Biggest Companies Behind Upcoming Movies and TV Shows
Biggest Companies Behind Upcoming Movies and TV Shows

Photo by Myke Simon on Unsplash

With this context and industry outlook in mind, let's take a look at the 10 biggest companies behind upcoming movies and T.V. shows.

Companies Behind Upcoming Movies and TV Shows

10. AMC Networks Inc. (NASDAQ: AMCX)

Number of Hedge Fund Holders: 21

We start our list of the 10 biggest companies behind upcoming movies and T.V. shows with AMC Networks Inc. The New York-based video entertainment production company will premier the final season of the zombie apocalypse series "The Walking Dead." AMC Networks Inc. is a holding company that operates American channels, including AMC, AMC Studios, BBC America, WeTV, and SundanceTV. Charles Francis Dolan created the company in 2011 and now runs four streaming services, namely Acorn TV, Sundance Now, Shudder, and UMC. The company ended 2020 with more than 6 million streaming subscribers.

AMC Networks Inc. has a market cap of $2.2 billion and posted a revenue of $2.8 billion in 2020. By the end of 2021, AMC Networks CEO Josh Sapan aims to have more than 9 million streaming subscribers, with 20 to 25 million by 2025. Shares of AMCX surged 116.9% over the past twelve months.

There were 21 hedge funds that reported owning stakes in AMC Networks Inc. (NASDAQ: AMCX) at the end of the fourth quarter, down from 28 funds a quarter earlier. The total value of these stakes at the end of Q4 is $207 million.

9. Lions Gate Entertainment Corp. (NYSE: LGF-B)

Number of Hedge Fund Holders: 23

Lions Gate Entertainment Corp. (NYSE: LGF-B) ranks 9th in our list of the 10 biggest companies behind upcoming movies and T.V. shows. On May 14th, 2021, the California-based motion picture production company will release the highly awaited suspense thriller "Spiral: From the Book of Saw" in collaboration with Twisted Pictures. Lions Gate Entertainment Corp. also produces international television shows and distributes STARZ-branded premium streaming video services worldwide. In the third quarter of fiscal 2021, global subscribers, including STARZPLAY Arabia, increased to 28.0 million, with international OTT subscribers increasing 900,000 to 14.6 million.

The company has a market cap of $3.2 billion and posted $836.4 million for the third quarter of fiscal 2021. Recently, Lions Gate Entertainment Corp. sold its 75% interest in Pantaya, a Spanish-language streaming service, to Hemisphere Media Group, Inc. (NASDAQ: HMTV) for $124 million. Shares of LGF-B jumped 105% over the past twelve months.

There were 23 hedge funds that reported owning stakes in Lions Gate Entertainment Corp. (NYSE: LGF-B) at the end of the fourth quarter, up from 22 funds a quarter earlier. The total value of these stakes at the end of Q4 is $286.8 million.

8. fuboTV Inc. (NYSE: FUBO)

Number of Hedge Fund Holders: 31

Ranking 8th among the biggest companies behind upcoming movies and T.V. shows is digital entertainment company fuboTV Inc. (NYSE: FUBO). The New York-based live sports streaming network will exclusively broadcast the Qatar World Cup 2022 qualifying matches of the South American Football Confederation. After hours of announcing an exclusive rights deal with the Qatar World Cup on April 8th, FUBO shares are up 5.7%.

In the fourth quarter of 2020, fuboTV recorded $105.1 million in sales and 547,880 subscribers to its internet-delivered pay-TV package. The company has a market cap of $2.64 billion. On March 9th, Oppenheimer & Co. Inc. rated FuboTV to Outperform with a lowered price target of $35 from $45. FuboTV purchased California-based tech startup Balto Sports in the fourth quarter of 2020, marking the company's entry into the online sports betting industry. The stock has gained 130% in the last twelve months.

7. Fox Corporation (NASDAQ: FOXA)

Number of Hedge Fund Holders: 39

Fox Corporation (NASDAQ: FOXA) ranks 7th in our list of the 10 biggest companies behind upcoming movies, and T.V. shows. The news company headquartered in New York produces business news and sports content mainly distributed in cable networks. Fox Corp. also owns a complete facility designed specifically to make motion pictures, namely The Fox Studio Lot. Season 3 of the sci-fi series "The Orville" is one of the upcoming T.V. shows that was recently filmed at the Fox Studio Lot, streamed on Hulu in the latter half of 2021.

The company has a market cap of $22 billion and a revenue of $4.09 billion in the second quarter of fiscal 2021, an 8% up from $3.78 billion in the same quarter in the previous year. Shares of FOXA increased 41% over the past twelve months. On April 12th, Credit Suisse analysts have given an Outperform ranking to FOXA with a target price set at $ 44.

There were 39 hedge funds that reported owning stakes in Fox Corporation (NASDAQ: FOXA) at the end of the fourth quarter, up from 32 funds a quarter earlier. The total value of these stakes at the end of Q4 is $1.29 billion.

6. AT&T Inc. (NYSE: T)

Number of Hedge Fund Holders: 58

The Dallas-based telecom and media giant AT&T Inc. (NYSE: T) ranks 6th on the list of 10 biggest companies behind upcoming movies and T.V. shows. The company operates WarnerMedia that creates, distributes, and licenses television programming and feature films. AT&T has witnessed the growth of its video-on-demand streaming platform under HBO Go and HBO Max. The martial arts fantasy film "Mortal Kombat" was originally scheduled to premiere on HBO Max on April 16th, but Warner Bros chose to delay it.

AT&T Inc. (NYSE: T) has a market cap of $213.8 billion and a revenue of $171.8 billion in 2020. In the fourth quarter of 2020, the total number of HBO subscribers in the United States reached 41 million and nearly 61 million worldwide. On April 16th, investment analysts at Oppenheimer lowered their Q1 2021 EPS estimates for AT&T, predicting that the firm would earn $0.78 per share, down from $0.79 previously.

There were 58 hedge funds that reported owning stakes in AT&T Inc. (NYSE: T) at the end of the fourth quarter, up from 51 funds a quarter earlier. The total value of these stakes at the end of Q4 is $1.04 billion.

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Disclosure: None. 10 Biggest Companies Behind Upcoming Movie and TV Shows is originally published on Insider Monkey.