|Bid||137.82 x 800|
|Ask||138.10 x 1000|
|Day's Range||137.11 - 138.22|
|52 Week Range||100.35 - 147.15|
|Beta (3Y Monthly)||0.73|
|PE Ratio (TTM)||17.77|
|Earnings Date||Nov 6, 2019 - Nov 11, 2019|
|Forward Dividend & Yield||1.76 (1.28%)|
|1y Target Est||152.09|
Apple is launching a streaming service in November, making it a direct competitor to Disney’s service that is set to launch the same month.
(Bloomberg) -- Walt Disney Co. Chief Executive Officer Bob Iger resigned from Apple Inc.’s board, a sign of increased competition between the entertainment and technology giants.Apple said in a Friday regulatory filing that Iger quit on Tuesday. He had served as a director since 2011 and was a friend of Steve Jobs. The Apple co-founder was also a Disney board member until he died in 2011. The duo appeared on stage more than a decade ago to announce an iTunes partnership.The relationship between the two companies became more fraught after Apple expanded into original TV shows and movies, making the Cupertino, California-based company a potent new rival for Disney. That had put Iger’s role on Apple’s board in doubt.On Tuesday -- the same day Iger resigned from the board -- Apple CEO Tim Cook said the company’s TV+ service would launch Nov. 1 for $4.99 a month, undercutting the upcoming Disney+ offering. The announcement dented Disney shares.In an April interview with Bloomberg TV, Iger said he was careful to recuse himself at Apple board meetings whenever the topic of streaming video came up. He added that the topic “has not been discussed all that much” by the Apple directors, because it was relatively small and nascent. “So far it’s been OK,” he said. “I’m in constant discussion about it.”“It has been an extraordinary privilege to have served on the Apple board for eight years, and I have the utmost respect for Tim Cook, his team at Apple and for my fellow board members,” Iger said in an emailed statement.His departure leaves Apple with seven board members. The average board has 10.8 directors, according to a 2018 analysis of companies in the S&P 500 index by Spencer Stuart, a consulting firm that provides executive search and board-related services.\--With assistance from Christopher Palmeri.To contact the reporter on this story: Mark Gurman in San Francisco at email@example.comTo contact the editors responsible for this story: Tom Giles at firstname.lastname@example.org, Alistair Barr, Mark MilianFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The development comes as both companies are preparing to release competing streaming services within days of each other.
Iger departed Apple's board the same day the company revealed new details about Apple TV+, a $4.99-per-month service that will launch on Nov. 1. Apple is spending billions in Hollywood to secure original programming for the service. The monthly subscription price for Apple TV+ undercuts Disney, which earlier this year announced its own streaming service that will feature its iconic children's content and cost $6.99 per month.
Apple Inc said https://www.sec.gov/ix?doc=/Archives/edgar/data/320193/000032019319000093/a8-kseptember201991019.htm on Friday that Walt Disney Co Chief Executive Officer Bob Iger had resigned from the company's board of directors on Sept. 10 as the two companies prepare to compete head-to-head in the streaming television business. Iger departed Apple's board the same day the company revealed new details about Apple TV+, a $4.99-per-month service that will launch on Nov. 1. Apple is spending billions in Hollywood to secure original programming for the service.
Walt Disney Co. Chief Executive Bob Iger has resigned from the board of Apple Inc. , the Silicon Valley company said in a filing late Friday. Iger resigned on Tuesday, according to the filing, which contained no other information. Earlier this week, Apple revealed that it would charge $4.99 a month for its previously announced streaming service, set to launch Nov. 1, undercutting Disney as well as Netflix Inc.'s streaming businesses. Iger had joined the Apple board in 2011, according to Disney's website. Other Apple board members include Chief Executive Tim Cook, former Genentech Chief Executive Arthur Levinson, who is the board's chairman, and former Vice President Al Gore. Shares of Apple and Disney were flat in the extended session Friday after ending the regular trading day down 1.9% and 0.4% higher.
(Bloomberg) -- Apple Inc. said a new video service won’t have a material impact on its financial results, seeking to counter research from a Goldman Sachs analyst who cut his share price target on concern that aggressive pricing of the TV+ offering will trim profit.Earlier this week, Apple outlined a strategy that involved lower prices on several devices and services, including a monthly cost of $4.99 for TV+. It will also be free for one year with purchases of new Apple devices. This is relatively rare for a company that has historically charged premium prices to support healthy profit margins.Rod Hall, the Goldman Sachs analyst who covers Apple, cut his price target on Apple shares to $165 from $187, saying the company’s plan to offer a trial period for TV+ was “likely to have a material negative impact” on average selling prices and earnings per share.“We do not expect the introduction of Apple TV+, including the accounting treatment for the service, to have a material impact on our financial results,” Apple said in an email.The stock jumped after the statement, trimming losses from earlier in the day. It traded down 1.8% at $219 at 2:56 p.m. in New York.The TV+ service is entering a crowded video-streaming field that already includes Netflix Inc., Amazon.com Inc., Hulu and AT&T Inc.’s HBO. In November, Walt Disney Co. plans to launch a Disney+ streaming service, with a giant catalog of titles, for $6.99 a month. Netflix’s entry-level subscription is $8.99 a month in the U.S.Apple, which doesn’t currently have a back catalog of content for TV+, announced the $4.99-a-month pricing on Tuesday, sparking a rally in its shares and declines in Netflix and Disney stock. In India, the TV+ service will be 99 rupees ($1.40) a month. (Updates with background on TV+ in final paragraphs.)To contact the reporters on this story: Mark Gurman in San Francisco at email@example.com;Nico Grant in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Tom Giles at email@example.com, Alistair BarrFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Robert Iger, CEO of The Walt Disney Co. , has resigned from the board of Apple Inc. according to an SEC filing from the iPhone maker. "While we will greatly miss his contributions as a board member, we respect his decision and we have every expectation that our relationship with both Bob and Disney will continue far into the future," Apple said in a statement. Apple's Apple TV+ service is set to launch on Nov. 1.
(Bloomberg Opinion) -- Careful, AT&T, those Hollywood lights can be blinding. The industry newbie has just struck an eye-popping deal with sought-after director J.J. Abrams to bring more of his movie magic to the telephone-giant-turned-media-conglomerate. AT&T Inc.’s offer amounted to: Dear J.J., please take this wheelbarrow of money. The deal between AT&T’s new WarnerMedia division and the Bad Robot production company, led by husband-and-wife team Abrams and Katie McGrath, is reported to be worth more than $250 million. That’s after Apple Inc. bid $500 million, according to Hollywood Reporter, though Abrams was said to have turned down that offer in part because he wanted to maintain a large box-office presence. With WarnerMedia, Abrams can create content for both the big screen and online-streaming properties. Bad Robot has previously produced hits such as “Star Wars: The Force Awakens,” and the shows “Lost” and “Alias.” The outrageous sums that AT&T and reportedly Apple put forth are emblematic of the escalating arms race for content. Entertainment giants – those new to the business, in particular – are trying to secure hit TV series and films for new streaming-video services launching in the coming weeks and months to compete with Netflix. Apple TV+ is set to be released Nov. 1, followed by Disney+ on Nov. 12 and AT&T/WarnerMedia’s HBO Max next spring. (Last year, AT&T acquired WarnerMedia, formerly called Time Warner, the parent of Warner Bros., HBO, CNN, TBS and other networks.) While most of these relatively low-priced subscriptions are years away from being able to turn a profit, the media giants are willing to bear the cost and pay up for the content to attract and keep customers.But WarnerMedia also threw in an unusual perk for Abrams: He gets to own potentially as much as a 50% stake in the projects he creates for the company, according to NBC News. The inclusion of a term like that, combined with the value of the contract, makes the deal look like a rookie move by WarnerMedia and the executive spearheading its streaming strategy, John Stankey, a three-decade veteran of AT&T’s phone business. Either that or desperation. Virtually no other media or tech giant would likely agree to give up those content rights. In fact, Walt Disney Co. is moving to cut back on the profits it shares with showrunners and stars after hit series pass the crucial 100-episode mark and enter into lucrative syndication deals, according to the Los Angeles Times. Disney wants control over that future licensing windfall, preferring to instead divide profits earlier on, when they aren’t quite as big.It’s no wonder that after Disney, Comcast Corp., Viacom Inc., Sony Corp. and Netflix Inc. were all said to have looked at Bad Robot, AT&T and its new media moguls landed the deal. Stankey, known for a brusque management style, has already had a rough start when it comes to gaining the respect of his new media employees and shaping the vision for WarnerMedia. It's part of the reason shareholder Elliott Management Corp. launched an activist campaign at AT&T this week, calling for more operational focus and a clearer strategy. AT&T CEO Randall Stephenson recently promoted Stankey to chief operating officer in addition to his role presiding over WarnerMedia specifically.Stankey and Stephenson aren’t the only industry outsiders starstruck by Hollywood and feeling the pressure to pay whatever’s necessary to expand streaming-app libraries and keep viewers from canceling subscriptions. Apple TV+ has reportedly dished out $300 million for the first two seasons of “The Morning Show,” an original series starring big names like Jennifer Aniston and Reese Witherspoon. Disney+ spent about $15 million on each episode of its “Star Wars” series, “The Mandalorian,” which adds up to the cost of a big-budget film. But AT&T’s leaders are showing their inexperience in the world of content and entertainment, driving away key internal personnel while so eagerly courting Abrams. The company’s post-deal turnover was punctuated by the high-profile exits of HBO’s Richard Plepler and Turner’s David Levy earlier this year.In reporting on the Abrams deal, Bloomberg News also uncovered an interesting detail about what actually happened to Kevin Tsujihara. He’s the former head of Warner Bros. who left in March amid a sex scandal involving an actress with whom he was having an affair and was accused of helping to land film roles. At first it seemed like Tsujihara was going to stay on despite the scandal, and in fact he had even just been promoted by Stephenson. However, Bloomberg reports that Abrams’s wife, McGrath, essentially gave AT&T an ultimatum, saying that’d it be hard for Bad Robot and WarnerMedia to work together if Tsujihara was there. It all makes sense now.As for the deal, Stankey had better hope Bad Robot makes good movies, because it seems none of his industry peers were willing to offer what he did. To contact the author of this story: Tara Lachapelle at firstname.lastname@example.orgTo contact the editor responsible for this story: Beth Williams at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tara Lachapelle is a Bloomberg Opinion columnist covering the business of entertainment and telecommunications, as well as broader deals. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Netflix (NASDAQ:NFLX) continues to face increased competition, and that's putting downward pressure on NFLX stock. On Sept. 10, Apple (NASDAQ:AAPL) announced the price of Apple TV Plus, the company's streaming platform. Set to launch on Nov. 1, it will cost the bargain-basement price of $4.99 a month. That's significantly cheaper than both Netflix at $12.99 a month (its most popular plan) and Disney+ at $6.99 per month. And, if you buy a new Apple device, you'll get Apple TV Plus free for the next year. InvestorPlace - Stock Market News, Stock Advice & Trading TipsOf course, Apple's new streaming service won't have nearly as much content as its peers, but it does plan to add more over time. Owners of NFLX stock have been nervous since it announced weak Q2 2019 results in July that showed a loss in U.S. subscribers and a failure to add as many international subscribers as analysts expected. Now, with Disney (NYSE:DIS), Apple, HBO, NBCUniversal and many others bringing out their streaming services, investors are wondering if the best days for Netflix stock are behind it. "Investor interest in Netflix is at a nadir with a view the stock will not work given these competitive launches the next few quarters," said Credit Suisse research analyst Douglas Mitchelson in a note to clients Sept. 9. "This suggests that for Netflix shares to rebound, 3Q19 results would have to come in well ahead of expectations."Maybe they will. Perhaps they won't. * 10 Big IPO Stocks From 2019 to Watch If you're unsure, but generally like Netflix's business model, you might want to buy these three ETFs as a safer alternative to NFLX stock. Invesco NASDAQ Internet ETF (PNQI)The first ETF to buy I've based on Netflix's weighting within the portfolio. The higher, the better.The Invesco NASDAQ Internet ETF (NASDAQ:PNQI) tracks the performance of the NASDAQ Internet Index, which invests in the largest and most liquid U.S.-listed internet-related companies.NFLX is the fifth-largest holding of the $539 million fund with a weighting of 6.27%. Also included in the top 10 holdings is Amazon (NASDAQ:AMZN), whose Prime video streaming service competes with Netflix for eyeballs. Overall, PNQI has 83 holdings, charges 0.60% (or $60 annually per $10,000 investment), and it has delivered a three-year, annualized total return of 16.7%. Fidelity MSCI Communication Services Index ETF (FCOM)The second ETF to buy I've based on the management expense ratio. The lower, the better.The Fidelity MSCI Communication Services Index ETF (NYSEARCA:FCOM) tracks the performance of the MSCI USA IMI Communication Services 25/50 Index, which invests in U.S. communication services stocks. NFLX is the eighth-largest holding of the $445-million fund with a weighting of 4.18%. Also included in the top 10 holdings are several of its competitors, including AT&T (NYSE:T) at 4.70% and Disney at 7.16%. * 7 Hot Penny Stocks to Consider Now Overall, FCOM has 110 holdings, charges 0.08% annually and it has delivered a three-year, annualized total return of 8.9%. ERShares Entrepreneur 30 ETF (ENTR)The third ETF to buy I've based on the number of holdings. The fewer, the better. The ERShares Entrepreneur 30 ETF (NYSEARCA:ENTR) tracks the performance of the ER30 Index, which invests in 30 of the largest U.S. large-cap entrepreneurial companies. NFLX is the sixth-largest holding of the $74-million fund with a weighting of 4.20%. Amazon is also one of the ETF's top 10 holdings.Overall, ENTR has 30 holdings, charges 0.49% annually and year-to-date has delivered a total return of 21.9%. It does not have a three-year return because it was only launched in November 2017. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Big IPO Stocks From 2019 to Watch * 7 Discount Retail Stocks to Buy for a Recession * 7 Stocks to Buy Benefiting From Millennial Money The post 3 ETFs to Buy If You Want to Go Long Netflix Stock appeared first on InvestorPlace.
Sports network ESPN has been something of a double-edged sword for Walt Disney (NYSE:DIS), as well as the owners of Disney stock, for a long time. On a per-subscriber basis, it generates the most revenue in the sector. As a result however, cord cutting has taken the biggest toll on the media giant.Source: David Tran Photo / Shutterstock.com And there's no sign that the cord-cutting movement is going to slow down anytime soon. In fact, it appears to be accelerating.That's a key part of the reason Disney has launched ESPN, a streaming app that delivers sports programming. It's also part of the reason Disney now owns the bulk of Hulu, and is planning to launch the entertainment streaming channel dubbed Disney+ in November.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Discount Retail Stocks to Buy for a Recession Of the three, though, it's the ESPN+ piece of the company's streaming offering that could prove the toughest for DIS, as it will eventually pit the company against the television providers who are also its de facto partners. It may boil down to a matter of who flinches first. Fighting an Oversized HeadwindDisney doesn't provide a detailed revenue breakdown of the components of its "Media Networks" division. (Accounting for about one-third of Disney's revenue, Media Networks is its largest unit.) But some estimates suggest ESPN accounts for about 50% of the unit's top line. A little math work leads to a rough assumption that ESPN makes up 15% of Disney's total revenue.Cord cutting has made that piece of Disney's revenue pie tough to defend, though.The majority of cable packages include most of Disney's channels. Nearly all cable providers offer ESPN to their subscribers, though, even if some cable providers leave out a number of the company's other channels.As of 2017, cable providers were paying Disney an estimated $7.21 per subscriber per month for ESPN. With ESPN2 and ESPNU, the monthly total rose above $9.00. That's pretty lucrative for DIS, and that revenue stream has been a key supporter of Disney stock.That's why cord-cutting mania has proven so problematic for Disney stock and so worrisome for the owners of DIS stock. As of late last year, ESPN had lost approximately 14 million subscribers in just seven years, and eMarketer anticipates that the number of customers canceling their cable package will grow by another 19.2% this year.The solution, of course, is to offer those defectors an alternative. Even at a monthly price of $5.00, Disney can collect something from ESPN+ customers who are no longer cable subscribers. Even though $9 per month is way below $5 per month, something is better than nothing.The matter isn't nearly that simple, though. At the Tipping PointContrary to the rhetoric, ESPN+ is not an alternative to cable-delivered ESPN. It's an addendum to ESPN's sports programming. No major event that's broadcast on one is shown on the other, and only a few of the commentary shows appear to be available on both channels.That leaves the all-important Monday Night Football out-of-reach for cord cutters. But MNF isn't the only key program that's not available on ESPN+.That's because Disney doesn't want to further alienate the conventional TV providers it still relies on for a wide swath of its revenue.But nonetheless, DIS is starting to clash with the cable companies. Case in point: Disney is currently warning customers of AT&T's (NYSE:T) satellite TV provider, DirecTV, that they could soon be losing access to all of their Disney-driven content if the two companies don't renew their deal soon.Now that streaming platforms are being established and cord cutting is an increasingly viable option, DIS could take a harder line and start offering some content via ESPN+ that previously was only offered on older types of TV.Disney likely knows that access to sports programming is one of the key reasons consumers have not yet canceled their cable and satellite service. Many of those relationships are hanging by a thread, though. Bolstering the amount of content available through ESPN+ could help greatly accelerate the exodus from conventional TV. The Bottom Line on Disney StockThe great irony, of course, is that Disney is helping to drive the very cord-cutting movement it's also lamenting.Granted, it's got help from Netflix (NASDAQ:NFLX) and Amazon.com's (NASDAQ:AMZN) Prime streaming service, which offers a fair amount of sports programming itself. For Disney and Disney stock, though, establishing an alternative sports venue outside of traditional TV is still a savvy option that makes the best of a tough situation.At the very least, ESPN+ effectively monetizes the ESPN name and relationships with professional sports leagues. But ultimately, the company's relationships with cable companies may become too strained to continue in its current form. If DIS adds stronger programming to ESPN+, the $12.99 per month bundle of ESPN+, Hulu and Disney would become more appealing. It may even become appealing enough to accelerate the already rapid cord-cutting movement.However Disney decides to balance cable and streaming, ESPN's content is sure to remain its most enticing asset.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about him at his website jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Big IPO Stocks From 2019 to Watch * 7 Discount Retail Stocks to Buy for a Recession * 7 Stocks to Buy Benefiting From Millennial Money The post Disney's ESPN Strategy Will Have a Major Impact on Disney Stock appeared first on InvestorPlace.
Apple and Disney have shown that they want to beat Netflix by undercutting it on pricing. This week, Apple disclosed the details of its streaming service.
Data shows that if you want to generate alpha and outperform the major indexes, some of the top stocks to buy are companies that practice gender diversity.Catalyst, the global nonprofit dedicated to building workplaces for women that work, has done exhaustive research into why diversity and inclusion matter. Among its findings: * Companies pay something of a self-imposed penalty for lack of diversity. That is, those companies that poorly practice gender and ethnic/cultural diversity were 29% less likely to experience profitability above the industry average. * A study of U.S. companies in the MSCI World Index between 2011 and 2016 found that "companies beginning with at least three women on their boards produced median gains of 10% ROE and 37% Earnings Per Share" over the five-year period. Companies with fewer women on their boards delivered less growth in these two important metrics. * A 2016 study by Intel and Dalberg Global Development Advisors found that tech companies that practiced diversity had higher revenues, profits, and market value than those that didn't. According to the study, diversity was worth $320 billion-$390 billion in increased market value by closing the gender gap in leadership.In short, investing in gender-diverse stocks isn't just a moral stance - it's financially rewarding. For investors looking for ways to get in, here are 10 top stocks that show gender diversity counts. SEE ALSO: All 30 Dow Stocks Ranked: The Analysts Weigh In
Apart from a series of other moves, Netflix (NFLX) has signed prolific filmmaker Karan Johar to strengthen presence in India amid growing competition post Apple's aggressive pricing of Apple TV+.
Investing.com – Netflix (NASDAQ:NFLX) climbed higher on Friday after Piper Jaffray backed the streaming giant to continue its dominance, even as rivals eye a piece of the pie.
(Bloomberg Opinion) -- Apple Inc. is getting ready to launch its own streaming-video service, Apple TV+, in the coming weeks. Compared to Netflix and other rival offerings, the new app will feature a rather skimpy lineup of viewing choices. That’s reigniting the will-they/won’t-they debate around Apple and the handful of Hollywood studios that look ripe for an acquisition.The tech giant announced this week that Apple TV+ will launch on Nov. 1, beating Walt Disney Co.’s rival product to the market by 11 days. Apple TV+ will cost $4.99 a month, which is $2 less than Disney+, and on the face of it, significantly cheaper than Netflix and AT&T Inc.’s HBO Max, set to debut next spring. What’s more, Apple will let customers have the service free for a year when they purchase an iPhone, iPad, Mac or Apple TV console. Much has been made of Apple TV+ undercutting competitors, but the price was set low to make up for the fact that, unlike rival services, it won’t contain a backlog of content out of the gate. Disney and AT&T both own immense libraries of films and TV shows and can stuff them into their streaming services even as they work to produce new original content exclusively for app subscribers. Remember, Disney owns Marvel, Pixar, “Star Wars,” “The Simpsons,” National Geographic and so on, while AT&T acquired Warner Bros., HBO and Time Warner’s other television networks last year. Apple TV+, on the other hand, will contain just nine originals on Day One and nothing else. Apple’s lack of a library argues for the company to buy a production studio. Lions Gate Entertainment Corp. (which also owns the Starz premium channel), Metro-Goldwyn-Mayer Studios Inc. (known as MGM), Sony Pictures and indie studio A24 are all prospects. Even a combined Viacom Inc. and CBS Corp. – two content companies that are in the process of merging – could be an appealing option given their diverse set of assets, including Paramount Pictures, MTV, BET, Nickelodeon and Showtime. (Shari Redstone, the billionaire who controls Viacom and CBS, would likely be a willing seller.)(1)It all depends, though, on how Apple CEO Tim Cook sees streaming video fitting into the company’s future. Is the goal to build a bona fide competitor to Netflix, available on anything with a screen? Or is Apple TV+ a loss leader meant to help drive sales of Apple devices? This week’s unveiling seemed to suggest the latter. After all, Apple’s revenue from iPhones decreased by $19 billion in the latest fiscal year, my colleague Shira Ovide noted in her column this week. In 2017, she wrote that Apple should try bundling software – such as video and music subscriptions – with its hardware to help boost sales. Apple is essentially doing just that by giving TV+ as a freebie for buying a new Apple product. “They’re doing it to sell hardware,” Marci Ryvicker, an analyst for Wolfe Research, said in a phone interview. “This isn’t Apple’s core business.”It’s noteworthy that Cook, while on stage Tuesday, compared the Apple TV+ fee to the cost of renting a single movie on demand – not to the price of other streaming subscriptions. That may provide some insight into his thinking. At $5 a month, Apple TV+ is also a long ways from making any money. That’s another reason it looks more like an internet add-on than a stand-alone product intended to take on Netflix, a business running on negative cash flow and junk debt. The cost of going all-in on streaming is steep. Disney, for example, doesn’t think its own $7-a-month app will start turning a profit until 2024, by which point it expects to have at least 60 million global subscribers. Even then, Ebitda for Disney+ may be just $51 million, a paltry 1% profit margin, according to a model by Alan Gould, an analyst for Loop Capital Markets. In 2025, he sees that figure jumping to $2.6 billion, though it still pales in comparison to the roughly $10 billion of Ebitda that Disney’s traditional TV and film businesses generate.Still, some analysts see Apple TV+ topping 100 million subscribers within five years, and it’s already planning to spend billions of dollars on content. It could be that Apple doesn’t know exactly what it wants from Apple TV+ yet. If it turns out to be successful early on, that may be what leads Cook to acquire a studio. Dan Ives, an analyst for Wedbush Securities, made the same bold prediction at the start of the year, and he told me this week that he’s sticking to it.“Right now, they’ve built a house with no furniture,” said Ives, who interprets Apple’s aggressive pricing strategy as a sign that it’s changed its past thinking and is ready to commit to streaming content in a big way. “It’s hard to envision them being massively successful in streaming without doing a major acquisition.”I agree. The question is, does it plan for Apple TV+ to be massively successful? This week may have signaled “no,” but when it comes to M&A, never say never. (1) Viacom is also said to be the front-runner to buy a stake in Miramax films.To contact the author of this story: Tara Lachapelle at firstname.lastname@example.orgTo contact the editor responsible for this story: Beth Williams at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tara Lachapelle is a Bloomberg Opinion columnist covering the business of entertainment and telecommunications, as well as broader deals. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Bob Iger, Walt Disney’s chief executive, has stepped down from Apple’s board just as the iPhone maker pushes into developing television shows that pits it head-to-head with the media company. Apple announced the news late on Friday in a one-sentence filing to the SEC. , Disney Plus, which will include Star Wars, Pixar and Marvel content, launches in November at $7 a month.
Anyone who has bought and held Netflix (NASDAQ:NFLX) stock for more than a couple of years has made a killing as the company has spearheaded the cord-cutting, anti-cable-TV revolution. Netflix was the undisputed leader in the streaming niche for a long time -- and still is, perhaps, but some well-known names are poised to take some of its market share.Source: Riccosta / Shutterstock.com In particular, Disney (NYSE:DIS) and Apple (NASDAQ:AAPL) are in the process of launching direct hits against Netflix's dominant position. Whether it's advisable to own shares of NFLX stock right now is debatable -- and perhaps even a bit dangerous as the competition has brand-name recognition, compelling content offerings, and low subscription prices that some consumers won't be able to resist. Who's the King of Streaming Content?Gone are the days when Netflix had the only streaming programming worth watching, as the competitors have content that's highly appealing to multiple viewer demographics. Apple TV+, which is slated to launch on November 1, will feature famous names like Oprah Winfrey, Steven Spielberg, Kristen Wiig, Reese Witherspoon, Jennifer Aniston, Steve Carrell, J.J. Abrams, and even some Sesame Street characters in its programming.InvestorPlace - Stock Market News, Stock Advice & Trading TipsLike Netflix, Apple TV+ will provide its content without ads; however, unlike Netflix, Apple won't release its series episodes all at once. In other words, viewers won't be able to binge-watch an entire series of their favorite shows on Apple TV+. This could prove to be a smart move on Apple's part because making viewers wait for new episodes builds the tension and anticipation, with episodes becoming "events" instead of just part of an all-night binge. * 7 Stocks to Buy In a Flat Market As for Disney, they'll be rolling out Disney+ on November 12 and this service could possibly outdo Netflix and Apple TV+ combined, at least in terms of content quantity. Disney+ subscribers can expect more than 7,000 television series episodes as well as between 400 and 500 movies, which will include not only all of the Disney and Pixar features that kids and adults have grown to love, but also the gamut of Star Wars and Marvel fare that keep viewers coming back again and again.To be honest, if I were holding NFLX stock, I would be quite concerned that Disney will steamroll over Netflix in the coming months and into 2020. Sure, adults enjoy The Walking Dead and Orange Is the New Black and some people liked Dave Chappelle's controversial stand-up comedy special, but I can imagine entire families watching Pixar, Marvel, and Star Wars films over and over again, both together and separately on their own devices. It won't be long, I suspect, before Disney takes Netflix's place as the content king simply due to its overwhelming quantity of beloved, instantly recognizable film offerings. Pricing Should Concern NFLX Stock InvestorsConsider the demographic segments that might typically consume streaming content: college students and families on a budget who can't always afford movie tickets or expensive cable bills. I would even go so far as to state that price was a major factor in people's decision to cut the cable cord and switch to Netflix in the first place. * 10 Stocks to Sell in Market-Cursed September Now, the same price considerations could entice consumers away from Netflix. While it's true that Netflix has a basic plan that costs $8.99 per month, hardly anybody chooses that plan and most people opt for the full-featured $12.99 plan. In contrast, Apple TV+ is set to be priced at a mere $4.99 per month; not only that, but the purchase of a new Apple device will reportedly come with a free subscription to Apple TV+ for one year.So, on the pricing front, Apple TV+ wins hands down. Disney+ also beats Netflix in this category with a monthly subscription price of just $6.99. Alternatively, a complete package including not only Disney+ but also ESPN+ and Hulu can be obtained at a monthly rate of $12.99; that's a heck of a lot of content for the same price as a Netflix subscription, and a cause for concern for folks holding NFLX stock. Bottom Line on Netflix StockI'm not concerned about the Netflix stock price or the company's fundamentals, so much as the stiff competition that will enter into the streaming fray next month. The ideal entry point to buy NFLX stock, as far as I'm concerned, has already passed and now's as good a time as any to exercise caution and take profits on Netflix shares.As of this writing, David Moadel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Battered Tech Stocks to Buy Now * 7 Strong-Buy Stocks Hedge Funds Are Buying Now * The 7 Best Penny Stocks to Buy The post Be Cautious with Netflix Stock as the Streaming War is Set to Heat Up appeared first on InvestorPlace.
In a week that was otherwise light on market news, Apple (NASDAQ:AAPL) lit a fire under large-cap tech stocks Tuesday with its livestream. This Apple event is the annual ritual where Tim Cook dons the traditional dark sweater, gets onstage at the "Steve Jobs Theater," and presents the new product lineup.We saw the new hardware: the Apple Watch Series 5…the 7th generation iPad…and of course the iPhone 11, now with two or even three rear cameras!But Apple also had a little surprise for its competitors in the streaming media market:InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe new Apple TV+ will launch Nov. 1, two weeks before Disney+…and it will be quite affordable. At $4.99 per month, it'll undercut everyone on price.This was a direct shot at Netflix (NASDAQ:NFLX), which starts at $8.99 per month these days, and The Walt Disney Co (NYSE:DIS), which currently charges $5.99 per month for Hulu and will offer Disney+ for $6.99. (Or you can get it bundled with ESPN+ and Hulu Original for $12.99 per month.) * 10 Battered Tech Stocks to Buy Now This is a pretty aggressive strategy to help Apple TV+ compete in a well-established space where Netflix (for example) already has over 150 million subscribers and nearly 1,800 TV shows and 4,000 movies.Judging by the market reaction to the Apple event, Apple TV+ is a contender. On an otherwise flat trading day, AAPL stock gained 1.2%, while NFLX, DIS and especially Roku (NASDAQ:ROKU) sold off hard. Below you can see how things played out after the livestream of the Apple event began at 1 p.m. EST:Investors were perhaps wise to be selling DIS. Sure, sales are growing - and perhaps Disney+ preorders are helping, along with major moneymakers like "Avengers: Endgame." But operating margins certainly aren't. Disney's earnings stats are dismal as well, with analysts revising their projections lower. Here is the full Report Card for DIS from my Portfolio Grader:Netflix's advantage over the likes of Disney is that (like Apple) it is an innovator. It totally disrupted its market with a game-changing product, and today it invests heavily in original content. Meanwhile, Walt Disney Pictures is just churning out remake after remake. At Accelerated Profits we went with NFLX stock and cashed out a 122% profit, regardless of Disney+.The media market has become ultra-competitive, and the innovators will win out. Ultimately, as I've made clear in Growth Investor, we're a consumer-driven economy - and today's consumers want unique, high-quality content.It's telling that the reaction to the Apple event had more to do with content services than hardware: The new iPhone 11 with its slow-motion selfies ("slofies") got little fanfare, and ROKU stock has been outright rejected since Tuesday.Now, Roku still has the lead, similar to how Netflix got a big lead from being installed on new TVs. But I think Apple TV will succeed in capturing market share and take the 2 spot. Apple fanatics can now forego the Roku media player - but still get that same convenience: They can get a year of Apple TV+ for free by buying an Apple TV (or any other) device…and they can stream Apple TV+ on their phones.In fact, Apple has been transitioning its focus from Products to Services for quite some time.While iPhone is still its largest sales category, Apple's Services segment contributes roughly twice as much as the wearables, the Macs and even the iPads. Naturally, Apple wants to keep that gravy train rolling by offering Apple TV+ to boost revenue further (and make earnings more predictable). Services is already what's driving Apple's revenue growth.Even Apple's latest major innovation - the Apple Watch - may soon become a vehicle for this trend…if Tuesday's livestream is any indication. The Other Key Takeaway from The Big Apple EventThe hardware on the Apple Watch is pretty impressive. With last year's Series 4, Apple added a heart sensor that lets you take your own electrocardiogram (ECG/EKG); the Apple Watch will automatically notify you if there's anything unusual. Now with the Series 5, there's an always-on display - which you can see from almost any angle - and a built-in compass. The Apple Watch can place an emergency call for you in 150 countries, now, too.But most of the focus with the Apple Watch was on your quality of life. In this year's livestream Apple event, the presentation of the iPhone 11 was all about what it can do. But with the Apple Watch, it was what it can do for you.Tim Cook kicked it off with testimonial videos: We heard from an elderly man whose Apple Watch automatically dialed 911 (and his wife) during a heart attack…plus stories from young parents, in which their EKG readings and the Watch's baby-monitor app featured prominently.In this shot from the presentation, you see it's all about the apps as well:Source: Apple Special Event September 10, 2019 Now that you can track just about anything for your health… what Apple is really selling you here is your own data.From workouts to your sleep cycles, reproductive health, and even meditation, the amount of data these wearables can collect is staggering. And to fulfill their potential, the apps need "the mother of all technologies."Up until now, technologies have certainly made our lives easier and more efficient…but with a lot of room for human error. People trip over cords, spill their coffee, and get tired.Artificial intelligence (A.I.) does not.If A.I. sounds futuristic, well then, the future is already here. If you use apps like Netflix, TurboTax, QuickBooks, Zillow (NASDAQ:Z), or even an email spam filter, then A.I. is already helping your day run more smoothly and efficiently. And as scientists find even more applications for artificial intelligence - from healthcare to retail to self-driving cars - it's incredible to imagine how much data will be involved.To create A.I. programs in the first place, tech companies must collect vast amounts of data on human decisions. Data is what powers every A.I. system.So any one company that can help with customers' data issues - is the one company that's most worth investing in.You don't need to be an A.I. expert to take part. I'll tell you everything you need to know, as well as my buy recommendation, in Growth Investor. My 1 stock for the A.I. trend is still under my buy limit price -- so you'll want to sign up now; that way, you can get in while you can still do so cheaply.Click here for a free briefing on this groundbreaking innovation.Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system -- with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the "Master Key" to profiting from the biggest tech revolution of this (or any) generation. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Battered Tech Stocks to Buy Now * 7 Strong-Buy Stocks Hedge Funds Are Buying Now * The 7 Best Penny Stocks to Buy The post Apple Event: New Offerings Leverage the Little-Known Future of Tech appeared first on InvestorPlace.
A test version of Disney+ has gone live in the Netherlands, where consumers can download the streaming service and view content on it for free.
Stocks traded higher again Wednesday with the Dow Jones Industrial Average positioned for a seventh consecutive winning day as the European Central Bank (ECB) delved further into easy monetary, and amid news that trade tensions between the U.S. and China continue to thaw.Source: ymgerman / Shutterstock.com Given President Donald Trump's Twitter (NYSE:TWTR) volatility, it's wise to approach good trade news with some caution, but over the course of this week, some green shoots have emerged.The White House pledge to push back some proposed tariffs on Chinese goods while China is promising to rollback some levies on U.S. imports in conjunction with upping purchases of American farm products.InvestorPlace - Stock Market News, Stock Advice & Trading TipsToday, reports emerged that the White House has discussed offering some form of a limited trade pact to China. Whether or not that agreement is accepted remains to be seen, but the overarching issue is that both sides, at least for now, are showing willingness to work on trade deals. * 10 Battered Tech Stocks to Buy Now In Europe, the ECB cut its benchmark lending rate to -0.5% and pledged to buy $22 billion worth of euro-denominated bonds per month.Those headlines got us to the Nasdaq Composite gaining 0.30% today while the S&P 500 jumped 0.29%. The Dow Jones Industrial Average tacked on 0.17%. In late trading, 23 of the 30 Dow stocks, one of the better ratios this week, were trading higher. First, the Bad NewsYes, there were some glum performances among Dow stocks today. For example, Caterpillar (NYSE:CAT) slipped about 1% after Wells Fargo downgraded the construction machinery maker to "market perform" from "outperform." The bank also pared its price target on that Dow stock to $143 from $150."U.S. construction equipment demand is at or near peak, which will put downward pressure on earnings power," said Wells Fargo.On a technical basis, Caterpillar recently bumped into some overhead resistance and looking at the chart, the shares look primed to pull back over the near-term.Speaking of analyst chatter hurting Dow stocks, Walgreens Boots Alliance (NASDAQ:WBA) was the worst-performing Dow stock today, sliding over 4% after Deutsche Bank analyst George Hill initiated coverage of the stock with a "sell" rating.Hill had a tepid take on Dow stock UnitedHealth (NYSE:UNH), starting coverage of that laggard with a "hold" rating. Shares of UNH also finished lower today. Bright Spots on the DowVisa (NYSE:V) was the best-performing Dow stock today, adding 1.71%. It looks like buyers stepped into the name after the shares pulled back following a record close last Friday. The stock had been nearly 4% over the past several days.Shares of Walmart (NYSE:WMT) added nearly 1% after the largest U.S. retailer unveiled an expansion to its grocery delivering service. Priced at $98 annually, or $82 less per year than the fee on Amazon Fresh.Whether its streaming entertainment or food delivery, pricing power matters. Companies that can offer it without disrupting the long case for their stocks usually get a boost from investors. Walmart plans to expand the new grocery delivery service to 200 metro areas across the country.Walt Disney (NYSE:DIS) bounced back today as some of the concerns about Apple's (NASDAQ:AAPL) streaming effort ebbed.Disney has its own streaming plans, Disney +, and Credit Suisse says that if that offering can attract 10 million subscribers by the end of this year, that could bring double-digit upside for the stock. DJIA Bottom LineCentral banks around the world are acting to prop up economies that are in far worse shape than the U.S., and it's likely the Federal Reserve will follow suit to avoid having to act when it's too late.In comments made in Chicago today, former Federal Reserve Chair Janet Yellen affirmed that the Fed stands at the ready to shore up the world's largest economy, which she still views as solid. However, she doesn't believe the central bank will follow the ECB playbook of negative rates.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Battered Tech Stocks to Buy Now * 7 Strong-Buy Stocks Hedge Funds Are Buying Now * The 7 Best Penny Stocks to Buy The post Dow Jones Today: Maybe We're Getting Somewhere appeared first on InvestorPlace.
If Disney (NYSE:DIS) wants to claim that they're a victim of circumstances, I won't necessarily disagree with them. In recent years, the Magic Kingdom has really flexed its muscle. With key (albeit expensive) acquisitions, an investment in Disney stock levers you to perhaps the most valuable entertainment franchises. Moreover, their streaming ambitions, resulting in the Disney+ platform, is a shot across the bow.Source: spiderman777 / Shutterstock.com However, consumer electronics giant Apple (NASDAQ:AAPL) has now returned the favor. In its highly anticipated iPhone 11 event, Apple announced their pricing strategy for their own streaming service. Called Apple TV+, the underlying company shocked observers with its $4.99 per month introductory pricing. That figure puts it well below every other streaming competitor, which includes top names like Netflix (NASDAQ:NFLX) and AT&T (NYSE:T).On cue, the markets dished out some punishment. DIS stock absorbed a sizable blow on Tuesday following the announcement. On the following midweek session, Disney stock closed up less than 0.3%. NFLX shares followed a similar pattern.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe one notable exception to the streaming fallout was AT&T. However, its shares moved higher on an activist investor taking a large stake in the firm; thus, it had nothing to do with the headwinds impacting DIS stock. * 10 Stocks to Sell in Market-Cursed September On the surface, things don't look too hot for the House of Mouse. When management launched their Disney+ pricing, it was clear they had Netflix in mind. With an introductory price of only $7 a month, it undercut Netflix's offering by nearly half. That move underlined some of the reasons why people bought Disney stock.But with Apple essentially doing the same, should stakeholders worry? I'd say no, and here's why: Contextually, DIS Stock Is a Better Streaming Investment than AppleThere's an old saying that "you get what you pay for." That really applies to DIS stock and its comparison to AAPL regarding streaming.While Apple's pricing can't be beat on a nominal basis, on a contextual basis, it's truly nothing special. When you drill into the details, Apple TV+ is designed to drive interest in the iPhone 11. As you know, smartphones have become incredibly competitive and likely saturated.Put another way, Apple TV+ and Disney+ are apples and oranges, no pun intended. That's very good news for Disney stock, at least specific to the streaming narrative.Unlike this arena's powerhouses, Apple TV+ won't stream licensed programs from third parties. When Apple TV+ launches, it will have nine original shows. Granted, they will feature some immediately recognizable Hollywood A-listers, such as Jennifer Aniston or Jason Momoa. But I can almost guarantee you this: these original shows won't compete with Disney's library of content, thus providing meaningful cover for DIS stock.Interestingly, though, Apple is giving a one-year free membership for Apple TV+ when customers buy select new products. That means Apple should have a massive streaming base in just a few months. And theoretically, that hurts Disney stock.But the reality is that very few people will elect to keep Apple TV+ once the freebie membership is over. Moreover, with added content, Apple will likely increase pricing, making the whole proposition even more unfavorable to customers.I think Apple might be underestimating the content power that both Netflix and Disney leverage. The former has won multiple industry awards, while the latter has lucrative franchises like "Star Wars."With the limited content that you get from Apple TV+, the better deal is really Disney or Netflix. Should Investors Buy Disney Stock?But before you dive into Disney stock, I think investors should consider the present environment. Of course, one of the dark clouds of the markets is the U.S.-China trade war. With a deal unlikely in the nearer term, the company faces tourism risks that could impact its resort business.Plus, the broader markets haven't moved in a convincing fashion. Yes, the benchmark indices have put together multiple consecutive bullish sessions. But Wall Street is starting to lose credibility with its seesawing price action. That might cap interest for buying Disney stock near all-time highs.That said, if DIS stock dips lower, perhaps to its 200-day moving average, I would be very interested. Companies associated with the entertainment industry have a viable case for surviving - and sometimes thriving - in a recession.As of this writing, Josh Enomoto is long T stock. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post Disney Stock Is Not in Danger from Apple TV+as Discount Pricing appeared first on InvestorPlace.