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Nonadvertising Revenue Streams Grow for Media Companies: A Wall Street Transcript Interview with James Dix, a Senior Research Analyst Covering the Media Sector at Wedbush Securities

67 WALL STREET, New York - November 11, 2013 - The Wall Street Transcript has just published its Entertainment, Toys and Games Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Brick-And-Mortar Versus Online Retail Sales - Cautious Consumer Spending - International Paid Television Growth - Digital Advertisement Trends - Mobile Device Gaming Prospects - Toy Company Competition

Companies include: CBS Corporation (CBS), Time Warner Inc. (TWX), Google Inc. (GOOG), Interpublic Group of Companies (IPG), Omnicom Group Inc. (OMC), Entravision Communications Cor (EVC), Clear Channel Outdoor Holdings (CCO), Lamar Advertising Co. (LAMR), National CineMedia, Inc. (NCMI), Netflix, Inc. (NFLX), Amazon.com Inc. (AMZN), Time Warner Cable Inc. (TWC) and many others.

In the following excerpt from the Entertainment, Toys and Games Report, an expert analyst discusses the outlook for the sector for investors:

TWST: What does your media coverage encompass?

Mr. Dix: My coverage includes some of the larger media and advertising companies like CBS (CBS), FOX (FOX), Viacom (VIA), Time Warner (TWX) and Google (GOOG). I also cover advertising agencies Interpublic (IPG) and Omnicom (OMC) and London-based WPP (WPP.L). I also cover some niche advertising names, one in broadcasting, Entravision (EVC), and a couple in out-of-home advertising, Clear Channel Outdoor (CCO) and Lamar Advertising (LAMR), primarily billboard companies, and National CineMedia (NCMI), which is an in-theater advertising company.

TWST: What are the most important trends happening in the media space?

Mr. Dix: Media companies typically generate revenue from advertising payments and end-user payments, which could be a subscription fee or a movie ticket. That's how media companies make their money. So if you look at a company like Google; it's 90% advertising. You look at a company like CBS; it's more like 60% advertising. Time Warner would be even less advertising, especially once they spin off their publishing business.

What you are seeing in the media space are investors interested in particular in the growth of the non-advertising revenue streams of the more traditional media companies. That can be things like licensing television shows to international networks, it could be licensing them to new platforms like Netflix (NFLX) or Amazon (AMZN), or payments to broadcast networks for making their signals available to Time Warner Cable (TWC) or Comcast (CCV) or other pay-TV operators.

Ten years ago, CBS didn't get anything for that. Now the broadcasters are getting probably one or two dollars per subscriber per month through pay TV subscriptions. So there is dramatic growth in these non-advertising revenue streams, which definitely helps these stocks outperform, and really not just this year, but for a couple of years now.

TWST: When you mentioned the nontraditional companies like Netflix or Amazon, are they a positive or a negative for the big media broadcast company?

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.