CMCSA - Comcast Corporation
| Previous Close | 43.77 |
| Open | 43.50 |
| Bid | 42.73 x 4000 |
| Ask | 42.74 x 900 |
| Day's Range | 42.69 - 43.83 |
| 52 Week Range | 32.61 - 45.30 |
| Volume | 8,234,698 |
| Avg. Volume | 18,224,096 |
| Market Cap | 194.367B |
| Beta (3Y Monthly) | 1.02 |
| PE Ratio (TTM) | 16.33 |
| EPS (TTM) | 2.62 |
| Earnings Date | Oct 23, 2019 - Oct 28, 2019 |
| Forward Dividend & Yield | 0.84 (1.90%) |
| Ex-Dividend Date | 2019-10-01 |
| 1y Target Est | 49.26 |
- American City Business Journals
WMAQ-Channel 5 dives into live and local lifestyle program fray
Station management apparently believes there is an appetite among Chicago television viewers for more of all kinds of lifestyle and celebrity news.
- Bloomberg
Hasbro's $4 Billion Peppa Pig Offer Looks a Little Skinny
(Bloomberg Opinion) -- At first glance, Entertainment One Ltd. and Hasbro Inc. make for ideal bedfellows. The former makes kids TV hit Peppa Pig, the latter is the world’s biggest toymaker. Merge one with the other and you get a combined video and merchandising giant.That’s why there’s sound strategic rationale for Hasbro’s planned 3.3 billion-pound ($4 billion) acquisition of the Toronto-based studio. It gets its trotters on some valuable kids’ franchises that it can turn into more toys, and it can use eOne’s TV and film production chops to exploit its own catalog of games, which span from Monopoly to Buckaroo! to Jenga.Hasbro has a decent if not stellar track record of turning its game franchises into films. The Transformers and G.I. Joe movies have done well at the box office, though no one would accuse them of being critical successes.That’s where reservations about the eOne deal come in. While it might be known as the firm behind Peppa Pig, the cartoon represents just 10% of its total revenue. The company’s family and brands business is expanding quickly, but its film and television division, which has made films such as Green Book and TV shows including The Walking Dead, contributes more sales and profit. It has something that Hasbro lacks: prestige.Darren Throop, the eOne chief executive, prides himself on the quality of the film and TV productions. It’s easy to see how eOne stalwarts might find the prospect of churning out spinoffs from Hasbro’s board games and toys hard to stomach. Sure, the deal logic holds up on paper: 130 million pounds of anticipated synergies by 2022 could lead to returns from the deal nearing 8% based on analyst earnings forecasts, just about covering the cost of capital. And that's before any upside from selling more toys or making more films.But are these firms as good a cultural fit as they insist? That might be the biggest hurdle to realizing the deal’s potential. That’s assuming it even completes. Right now, that’s in doubt. The stock traded as high as 5.90 pounds on Friday, above Hasbro’s 5.60 pounds-per-share bid, suggesting investors anticipate either an activist pushing the purchase price higher, or a counterbidder sticking their snout in. Rivals might include the Walt Disney Co., John Malone’s Liberty Global Plc, Vincent Bollore’s Vivendi SA, Comcast Corp. or even toymaking rival Mattel Inc.The plethora of competing TV and film streaming services has sparked a fight for high-quality content, and eOne has some of the best, helped by relationships with Steven Spielberg, with whom it has a production joint venture, and super-producer Mark Gordon.Disney expanded from a production company into a merchandising and theme park giant, and its success under CEO Bob Iger has been built around recognizable franchises such as Star Wars, Marvel and Pixar’s output. Hasbro is making a play to do the same but in the opposite direction. High-quality content is increasingly scarce and expensive, though. That might make eOne an equally tasty morsel for someone else.To contact the author of this story: Alex Webb at awebb25@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
- American City Business Journals
Streaming roundup: Netflix dominance eroding amid Hulu, Amazon subscriber gains
Netflix is still far and away the most dominant player in the streaming industry. But the streaming platform is slipping in U.S. market share to rivals Amazon and Hulu.
- InvestorPlace
Here’s Why Netflix Stock Might Win in the Recession
From a broader view, it's hard not to love Netflix (NASDAQ:NFLX). Starting life originally as a DVD subscription service, the company transitioned to the streaming platform. Since then, it has never looked back, enjoying its first-to-market advantage. Later developments, such as the production of original content, made Netflix stock all the more compelling.Source: Riccosta / Shutterstock.com But recently, this thesis is under severe threat. Last month, Netflix released its second quarter of 2019 earnings report. To say that it was a disappointment would be a grave understatement. While I'm not going to rehash old news, the key metric to focus on is the subscriber count. In the U.S. market, Netflix lost 100,000 subscribers when analysts expected it to gain 300,000. Unsurprisingly, NFLX stock tanked.Further, global net ads measured 2.7 million. This tally was substantially below analyst forecasts for five million. No matter how you break it down, Netflix stock lives on subscriber trends. That it fell short so spectacularly hurt sentiment.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut that's not all. Over the past several months, tech firms and traditional media companies have encroached into Netflix's arena, disrupting the disruptor. Most notably, Disney (NYSE:DIS) will launch its streaming service Disney+ this coming November. That's a double whammy for NFLX stock due to a loss of content and the addition of a rival. * 10 Marijuana Stocks to Ride High on the Farm Bill Furthermore, Disney will offer a bundled plan which encompasses Disney+, ESPN+, and ad-supported Hulu for $13. That's the same price as Netflix's "Standard" Plan.Beyond the Magic Kingdom, names like Comcast (NASDAQ:CMCSA) and Amazon (NASDAQ:AMZN) are aggressively ramping up their streaming inroads. Plus, NFLX is losing the popular show Friends to AT&T's (NYSE:T) WarnerMedia.Is it time to dump Netflix stock? Recession Worries Hits Netflix Stock HardOutside recession fears, I'm inclined to believe that the current fallout in NFLX stock is temporary. And by temporary, I would mean that it's a discounted buying opportunity.But in the past weeks, any optimism toward the U.S.-China trade war has evaporated. Additionally, the yield for 2-year Treasuries again moved above the 10-year yield. This inversion of the yield curve potentially signals a recession, yet the Federal Reserve is not acting decisively.While I don't want to get too wonky, these signs indicate that a recession is more likely than not. As an investment levered to consumer sentiment, this is a bad omen for Netflix stock.Now, the typical retort to this bearish assessment is that even in a downturn, people need entertainment. This is one of the reasons why I think AMC Entertainment (NYSE:AMC) makes a viable contrarian case. Certainly, compared to traditional TV subscriptions, Netflix is dirt cheap. And people will give up almost anything before they give up their internet, which is a digitalized society's lifeblood.Unfortunately, the robust streaming competition presents a new kink to this logic. In a bullish economy, consumers would probably buy two or even three streaming services. Even at $39, for example, this is much cheaper than traditional TV providers' post-introductory subscription specials.But in a recession? That's when consumers will start belt-tightening. They probably won't get rid of streaming altogether. However, they may not unnecessarily bundle competing services. Thus, it becomes a race to see who can offer the best content at the best price.Naturally, this makes stakeholders of Netflix stock nervous, especially after the disastrous Q2 report. Seemingly, subscribers are getting tired of the company's original content. And streaming is known for fickle viewers. The Risky Case for NFLX StockIf push comes to shove, though, I'd gamble that Netflix will rise above the streaming fray. Why? It goes back to original content.Currently, millennials represent the biggest demographic in the U.S. workforce. That probably won't change in a recession. Therefore, the people who are most savvy to streaming content are also the ones earning a paycheck.Ultimately, this benefits Netflix stock because the streaming giant has truly captured the millennial's attention span. When people watch various shows and programs, they're mostly doing so through Netflix.Additionally, NFLX features a wide range of gritty and compelling drama, stuff that millennial subscribers go wild over. And let's not forget that the company has the Midas touch in terms of producing relevant, award-winning content.Of course, I'm not completely crazy. This is still a risky proposition given the Q2 results. But it's not entirely out of the question that Netflix stock can ride out a downturn. Thus, if you want to take a measured gamble, I don't think it's a bad idea.As of this writing, Josh Enomoto is long T and AMC. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks to Ride High on the Farm Bill * 8 Biotech Stocks to Watch After the Q2 Earnings Season * 7 Unusual, Growth-Oriented REITs to Buy for Your Portfolio The post Hereas Why Netflix Stock Might Win in the Recession appeared first on InvestorPlace.
- Bloomberg
Phone Companies Strike Deal With States to Fight Robocalls
(Bloomberg) -- AT&T Inc., Verizon Communications Inc. and 10 other large phone companies have struck an agreement with 51 attorneys general to enact technology to block robocalls before they reach consumers.The deal, announced Thursday, will help protect consumers from receiving illegal robocalls, and assist law enforcement in investigating and prosecuting bad actors, said North Carolina Attorney General Josh Stein, who is leading the effort that includes all 50 states and the District of Columbia.Under the deal, the companies will launch the call-blocking technology at no cost to consumers, and make other free anti-robocall devices and apps available to subscribers. “By signing on to these principles, industry leaders are taking new steps to keep your phone from ringing with an unwanted call,” Stein said in a statement.The companies are under pressure to protect consumers against the unwanted calls, which are a top source of complaints with the U.S. Federal Communications Commission. Across the U.S. there were 48 billion robocalls last year, up from 31 billion in 2017, according to a tally by YouMail Inc., a developer of software that blocks the calls.In July, AT&T, Verizon and T-Mobile US Inc. said they were making progress toward installing technology to authenticate calls so consumers would know if the call is coming from the person supposedly making it. The FCC has demanded the technology be in place by the end of the year.FCC Chairman Ajit Pai said the agreements with the states “align with the FCC’s own anti-robocalling and spoofing efforts,” including the agency’s caller authentication standards.“Few things can bring together policy leaders across the political spectrum like the fight against unwanted robocalls,” Pai said in a statement. “The FCC is committed to working together with Congress, state leaders, and our federal partners to put an end to unwanted robocalls.”Consumers are often duped into answering phone calls because they appear to be from a local number or business.“The bad actors running these deceptive operations will soon have one call left to make: to their lawyers,” New York Attorney General Letitia James said in the statement.Companies InvolvedThe other companies signing the agreement are T-Mobile, CenturyLink Inc., Comcast Corp., Sprint Corp., Bandwidth Inc., Charter Communications Inc., Consolidated Communications Holdings Inc., Frontier Communications Corp., U.S. Cellular Corp. and Windstream Holdings Inc.The FCC has demanded that carriers adopt the system to digitally validate phone calls passing through the complex web of networks. The agency also has said that providers may block calls, and cast a preliminary vote to require the digital authentication if carriers fail to install it by year’s end.Several of the top U.S. carriers issued statements in concert with the state attorneys general announcement. While the group on a whole backed the effort, there were few if any new, specific anti-spam call actions or timelines mentioned.“It’s imperative that we stand together on a common set of goals that include stopping callers from hiding their identities, working with other carriers on efforts to trace back illegal calls to the source, and keeping the originators from sending robocalls in the first place," Verizon said in a statement.“The fight against the scourge of illegal robocalls requires all hands on deck, and we welcome and appreciate the support of the state attorneys general,” AT&T said in a statement.(Updates with carriers and FCC comment beginning in seventh paragraph.)\--With assistance from Erik Larson and Scott Moritz.To contact the reporters on this story: Jonathan Reid in Washington at jreid98@bloomberg.net;Susan Decker in Washington at sdecker1@bloomberg.netTo contact the editors responsible for this story: Jon Morgan at jmorgan97@bloomberg.net, ;Keith Perine at kperine2@bloomberg.net, Elizabeth WassermanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Zacks
Alibaba, Dillard's, Coca-Cola, McDonald's and Comcast highlighted as Zacks Bull and Bear of the Day
Alibaba, Dillard's, Coca-Cola, McDonald's and Comcast highlighted as Zacks Bull and Bear of the Day
- InvestorPlace
The Concerning Combination Pressuring Netflix Stock
Since its disappointing earnings report last month, Netflix (NASDAQ:NFLX) stock has declined 17%. And the pressure hasn't let up of late: Netflix stock has reached its lowest levels since last December.Source: Flickr via Mike K.It's not difficult to see why. Netflix stock is a story based on subscriber growth, as I wrote after NFLX reported disappointing user metrics in last year's second quarter. And its numbers on that front were terrible in its recent Q2 report.With Netflix stock now back below $300, some investors might see a "buy the dip" opportunity at this point. The growth of streaming is going to continue, and NFLX remains the leader of that market. Indeed, I've recommended buying NFLX stock on weakness in the past; in November, I called the stock the best contrarian bet in tech.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut this is a different situation. The selloff late last year was driven by external factors - most notably, a plunging stock market that dragged down many, if not most, highly-valued growth stocks with it. NFLX itself was performing reasonably well. And in fact, there was (and is) an argument that Netflix stock would benefit from a recession, which might accelerate cord-cutting as consumers look to save money. * 10 Marijuana Stocks That Could See 100% Gains, If Not More The recent selloff of Netflix stock is based on the company's performance, however. And as weak as that performance looked in Q2, when combined with what's going on elsewhere in the U.S. content sector, it's something close to disastrous. As a result, it can get worse before it gets better for Netflix, and for Netflix stock. Q2 Subscriber Numbers Hammer NFLX StockNetflix's headline numbers actually looked solid. GAAP EPS of 60 cents beat consensus expectations by 4 cents. Revenue of $4.92 billion rose 33% and was in-line with analysts' average estimates.But the subscriber figures were the big issue for Netflix stock, and led to a 10.3% decline by NFLX stock. Net paid subscriber additions of 2.7 million badly missed the company's guidance of 5 million. As a helpful chart in the Q2 shareholder letter showed, that was the biggest miss relative to guidance since at least the beginning of 2016.And it was the U.S. market that caused the miss. Netflix's U.S. paid subscriber count actually declined in the quarter for the first time since 2011.That alone likely drove investors to flee Netflix stock. But NFLX has continued to fall, dropping another 8% from its immediate post-earnings levels. That continued decline may come from a growing realization that the quarter was even worse than investors initially realized. The Content Question for NFLX StockOne of the reasons that Netflix stock has been so divisive is that the company continues to burn cash. Its content spending is expected to come in above $15 billion this year.That spending makes some sense. Instead of licensing content - and paying for it annually - NFLX essentially is buying its content upfront. Free cash flow now might be negative, but if that content drives subscriptions down the line, its free cash flow several years from now will be higher, making the near-term investments worthwhile.But that strategy only works if subscribers will stay with NFLX for a long time, allowing that content to be monetized in future years. That alone makes the Q2 subscriber decline concerning. So does a widely-cited passage from the company's shareholder letter: "We think Q2's content slate drove less growth in paid net adds than we anticipated."If that's the case, NFLX has a problem. It means the company can only keep adding subscribers if it continues to spend a great deal on content That sounds an awful lot like the old joke about selling at a loss, and making it up on volume. If Netflix's content budgets can't come down, free cash flow will stay negative or at best modestly positive. And that does not support the market capitalization of NFLX stock, which still sits at $130 billion. Where Are the Cord-Cutters Going?There's another major concern about Netflix's Q2 results. Specifically, Netflix's weak performance came at the same time that cord-cutting appears to have accelerated.Indeed, legacy cable companies had a horrible quarter. AT&T (NYSE:T) lost almost 1 million video subscribers. Comcast (NASDAQ:CMCSA) and Charter Communications (NASDAQ:CHTR) lost a combined total of nearly 400,000 viewers.Industry analyst MoffettNathanson called the quarter "freaking ugly" for cable companies and projected an unprecedented 5.5% cord-cutting rate in the quarter.So the question relative to Netflix numbers is: where are these subscribers going? One answer might be Hulu, now majority-owned by Disney (NYSE:DIS). At the Disney Investor Day in April, the company said Hulu had more than 25 million paid subscribers. Earlier this month, the company said the figure was "approximately 28 million."Whatever the case, Netflix should have been set up to have a blowout Q2 on the subscriber front in the U.S. Instead, it posted a stunning decline. In that context, its performance looks even weaker, and more concerning, than a simple guidance miss. The Competitive Concern for Netflix StockI wrote ahead of NFLX's Q2 results that the earnings report was critical for Netflix stock. And a key reason is that new competition is on the way from Disney, AT&T, and Comcast.Netflix, in its shareholder letter, wrote that it didn't think competition was a key factor in the disappointing subscriber numbers. That may well be true. But competition will be a factor in 2020, when those streaming services - with a great deal of content, backed by high marketing budgets - come online.And so investors can rightly wonder: if Netflix's U.S. subscriber growth is stalling out already, what happens when its competition increases next year? Real ConcernsNetflix stock bulls might respond that the U.S. isn't Netflix's only market. That's true: the company now has more subscribers overseas than in the U.S. More of its revenue comes from overseas as well.But about two-thirds of its profits still come from the U.S.. America is still the company's key market. And with NFLX stock trading at 53 times analysts' average 2020 EPS estimate, a stumble in the U.S. is likely to prove damaging for Netflix stock.On the other hand, the company's Q3 guidance was strong, and it's possible NFLX can bounce back. But its Q2 performance raises real questions and suggests more downside for Netflix stock could be ahead. It's the type of quarter that raises concerns about the company's overall strategy and market positioning, as well as the valuation of NFLX stock.And that's why it's been the type of quarter that leads not only to a big post-earnings decline, but more selling in the following weeks. Investors who buy the dip of Netflix stock do so at their peril.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks That Could See 100% Gains, If Not More * 11 Stocks Under $10 to Buy Now * 6 China Stocks to Buy on the Dip The post The Concerning Combination Pressuring Netflix Stock appeared first on InvestorPlace.
- Investor's Business Daily
Cable Firms Shrug Off Video Losses By Playing The Broadband Card
Despite video subscriber losses, Comcast and Charter are finding more love among investors than telecom rivals AT&T; and Verizon. Their dominance in broadband services to homes is why.
- Bloomberg
Berlusconi Battles Billionaire to Build Netflix Rival
(Bloomberg Opinion) -- Former Italian Prime Minister Silvio Berlusconi and French billionaire Vincent Bollore are locking horns again in a battle to lead the southern European charge against Netflix Inc. Bollore, who controls media conglomerate Vivendi SA, lost the first round against Berlusconi in 2017. He’s well positioned to do better in the second. Think of it as a European version of HBO’s hit show “Succession,” where a rival takes on an aging but still powerful media baron. The two tycoons are sparring over the future of Mediaset SpA, the Italian broadcaster that Berlusconi founded and controls. The Milan-based company plans to merge with Spanish affiliate Mediaset Espana Comunicacion SA and redomicile in the Netherlands. The move will consolidate the control that Berlusconi, 82, and his family, through investment vehicle Fininvest, have by giving them extra voting rights in the new company, which will be called MediaForEurope.It’s a prospect that Bollore, 67, must be loath to countenance. Vivendi owns 29% of Mediaset and plans to oppose the deal in a shareholder vote Sept. 4 since it will further diminish its influence, Bloomberg News reported on Wednesday. While Berlusconi needs a two-thirds majority to approve the merger, Vivendi may only be able to exercise 9.6% of the voting rights because most of its shares sit in an independent trust as a result of a 2017 reprimand from the Italian regulator -- Bollore’s initial defeat by Berlusconi. Luckily Vivendi has another lever it might exercise. The deal will fall through if shareholders owning more than 180 million euros of stock exercise a withdrawal right, whereby Mediaset has to pay investors opposing the merger a set price for their shares. Even if Vivendi were only to exercise the rights on its 9.6% direct stake, that would top 300 million euros, potentially scuppering Berlusconi’s plans.It might just give Bollore the leverage he needs to realize a long-held goal: creating a southern European content champion that can better compete with Netflix. Doing so would likely mean selling the stake at a loss, but the threat could force Berlusconi back to the negotiating table to forge some sort of alliance to pool Vivendi and Mediaset content. After all, the merger of the two Mediasets in Italy and Spain has a similar intention, to create a new video content giant.That’s how Bollore ended up with a stake in Mediaset to begin with. Back in 2016, he pulled out of a deal to buy Berlusconi’s Mediaset Premium (the pay TV arm that has since been sold to Comcast Inc.’s Sky unit) for some 800 million euros, instead buying up shares in the parent firm. Since Vivendi is also the biggest shareholder in Telecom Italia SpA, Italy’s communications regulator made the French firm forfeit most of its Mediaset voting rights, saying that the dual stakes breached rules concerning concentration of media and telecoms ownership.Bollore has been left with stakes in two Italian companies worth a combined 3.2 billion euros, but over which he has little influence. He also suffered a galling defeat at the hands of activist Elliott Management Corp. for control of Telecom Italia last year. He now has an opportunity to salvage some of the plans that first got him into this mess.To contact the author of this story: Alex Webb at awebb25@bloomberg.netTo contact the editor responsible for this story: Stephanie Baker at stebaker@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
- Motley Fool
Netflix Is Angling for Its Piece of This $122 Billion Market
While the streaming giant's hit shows are its bread and butter, another massive opportunity is waiting in the wings.
- Market Realist
Disney Slips 0.12% on Allegations of Inflated Revenue
A former employee claims that Disney (DIS) inflates its revenue to enhance its financial results. Disney refutes the allegations.
- Zacks
3 Blue-Chip Dividend Stocks to Buy as Bond Yields Fall & Global Worries Rise
Check out these 3 blue-chip dividend stocks to buy as bond yields fall...
- Benzinga
Option Traders Making Bullish Bets On Comcast
On Wednesday, Benzinga Pro subscribers received options alerts related to seven large Comcast option trades. At 10:09 a.m. ET, a trader sold 6,000 Comcast put options with a $40 strike price expiring on Sept. 20 at the bid price of 22.1 cents. At 10:37 a.m. ET, a trader sold 512 Comcast call options with a $45 strike price expiring on Sept. 20 near the bid price of 46.4 cents.
- InvestorPlace
Disney May Disrupt Netflix, But Take Your Time With DIS Stock
Disney (NYSE:DIS) stock is treading water. Shares now trade around $135, down from as high as $147.15 in late July. The recent earnings miss calls into question the current valuation of Disney stock. But with the launch of Disney+ around the corner, is now the time to buy DIS? Disney stock continues to trade at a premium compared to its peers, but offers material upside in the long-term. Let's take a deep dive and see what's the verdict with Disney stock.Source: Shutterstock Recent Performance of DISDisney announced earnings on Aug. 6. DIS saw earnings per share fall 59% year-over-year. Much of this decline was due to the integration of recent acquisitions 21st Century Fox and Hulu. Excluding these items (amortization and impairment charges on intangible assets), EPS fell only 28%. The integration of these assets offers long-term upside. But in the meantime, integrating these operations is a work-in-progress.21st Century Fox's film division has under-performed. Recent release "Dark Phoenix" was a box office bomb. But Disney's film division continues to be strong. "Avengers: Endgame," "Aladdin" and "Toy Story 4" met expectations. For the third quarter, Disney should see additional strong performance in the film division. Disney's July release of "The Lion King" has already generated over $1.4 billion at the worldwide box office. As I stated in a previous article, the Magic Kingdom continues to be "king of content."InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Marijuana Stocks to Ride High on the Farm Bill Through Aug. 18, Disney's film distribution arm, Buena Vista, had 37.1% of the box office market share for 2019. This is leaps-and-bounds ahead of number two, Comcast's (NASDAQ:CMCSA) Universal. Universal's year-to-date market share is just 13.8%. Add in 20th Century Fox's box office take, and Disney has more than 40% market share. Theatrical revenue is a small component of today's film business. But it is a strong indicator of the residual value of Disney's film assets. In the more lucrative television and streaming markets, Disney's content is king. This mass appeal will translate well when Disney launches the anticipated Disney+ service later this year. Full Steam Ahead for Disney+Disney's new streaming service goes live in November. Disney+ could disrupt Netflix's (NASDAQ:NFLX) current streaming dominance. As InvestorPlace's James Brumley wrote last week, the company will bundle Disney+, ESPN+ and Hulu in a $12.99/month package, the same price point as Netflix.As I mentioned in my recent Netflix analysis, NFLX's U.S. subscriber base is falling. Content producers are demanding higher licensing fees. In addition, Comcast's NBCUniversal and AT&T's (NYSE:T) WarnerMedia are hoarding properties such as "The Office" and "Friends" for their respective streaming apps. Netflix believes it can counter this with billions invested in original programming. But, Netflix has not yet created a show with the matched popularity of its licensed content. On the other hand, Disney has an impressive library, thanks not just to its own content, but to Fox's extensive film and television library as well.With Disney+ around the corner, should investors nix NFLX and stock up on DIS? Let's take a look at valuation, and see if the opportunity justifies the price. Valuation: Is Opportunity Worth the Current Price?DIS stock currently trades at a forward price-to-earnings ratio of 23. The company's Enterprise Value/EBITDA ratio is 18.7. This is a substantial premium to its big media peers: * AT&T: Forward P/E of 9.7, EV/EBITDA of 8.2 * CBS (NYSE:CBS): Forward P/E of 7, EV/EBITDA of 8.6 * Comcast: Forward P/E of 13, EV/EBITDA of 9.6 * Viacom (NYSE:VIA, NYSE:VIAB): Forward P/E of 6.2, EV/EBITDA of 6.3But as I have mentioned before, comparing DIS stock to its peers is not apples-to-apples. AT&T and Comcast are both telecom companies with attached media businesses. CBS and Viacom (which are going to merge) face headwinds in the age of streaming. But compared to the valuation of NFLX, Disney stock is a clear bargain. NFLX trades at a forward P/E of 92.4, and an EV/EBITDA ratio of 52.8. Compared to NFLX, Disney is the smarter play. With DIS stock, you get a highly profitable media conglomerate with potential upside from streaming. Bottom Line: Wait to Buy DIS StockDisney stock should continue to win in the long term. If the upcoming Disney+ platform performs as expected, the company should see continued growth, even if their legacy cable networks business sees long-term decline. However, there are negative factors to consider. While it trades at a lower valuation than NFLX, Disney shares trade at a substantial premium to its big media peers. A recent claim that Disney overstated its theme park revenue could be a potential risk. But this recent news item is still playing out.The launch of Disney+ is a long-term play. Profitability is years away. In the meantime, a market correction could impact the valuation of DIS stock. Coupled with short-term growing pains, DIS stock could be a bargain sometime down the road. For now, wait on the sidelines as new developments factor into the stock.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks to Ride High on the Farm Bill * 8 Biotech Stocks to Watch After the Q2 Earnings Season * 7 Unusual, Growth-Oriented REITs to Buy for Your Portfolio The post Disney May Disrupt Netflix, But Take Your Time With DIS Stock appeared first on InvestorPlace.
- American City Business Journals
How Disney's new Skyliner design influences cast member outfits
Walt Disney World's latest transportation system, which will begin service Sept. 29, is the inspiration for new costumes for the Disney cast members who work on the gondolas. The Skyliner is a gondola-based transportation system that will connect Disney's Hollywood Studios and Epcot theme parks to Disney's Art of Animation Resort, Disney's Pop Century Resort, Disney's Caribbean Beach Resort and the future Disney's Riviera Resort, which will open this December.
- Bloomberg
Apple's TV Splurge Just Adds to the Madness
(Bloomberg Opinion) -- Get ready, TV fans, because the next few months are going to be wild. Apple Inc., AT&T Inc., Netflix Inc. and Walt Disney Co. are spending billions of dollars on so much new streaming content that there will be little reason to leave your couch this winter – or to keep your cable subscription.Apple gave a taste yesterday of what it’s been working on by releasing a trailer for “The Morning Show,” an original series that looks so good it could easily be mistaken for an HBO production. With an all-star cast led by Jennifer Aniston, Reese Witherspoon and Steve Carell, Apple is said to be spending $300 million alone for the first two seasons. The company has committed a whopping $6 billion overall to produce original shows and movies, according to the Financial Times, which would match what Netflix spent in 2017 and would also be in the same ballpark as Amazon.com Inc.’s expected content investment for this year. Other outlets have disputed that Apple’s budget is quite so large. Either way, it’s clear the iPhone maker is serious about streaming. The Apple TV+ and Disney+ video-on-demand apps will both be available by mid-November, followed by AT&T’s HBO Max product. They are game-changers for the pay-TV industry, already littered with live-TV streaming products from Sling TV to YouTube TV.Disney has spent about $15 million per episode to make “The Mandalorian,” a live-action “Star Wars” series that will serve as the flagship of Disney+, according to the Wall Street Journal. That’s about $120 million for the first season, which isn’t far from what Disney shelled out for “Captain Marvel,” the third-biggest movie of the year in terms of U.S. box-office ticket sales. The company expects to invest more than $1 billion in original content for the app next year and another roughly $1 billion for licensed content. These streaming wars are risky. Studio owners generally have a sense of what a TV program could deliver in advertising revenue and how large of a theater audience a film might draw. But Disney+ will charge just $7 a month and contain no ads. The company is betting it can build a large enough customer base so that all these pricey investments that have shareholders wincing right now will pay off some day.In the Apple TV trailer above, Aniston’s character at one point says, “I just need to be able to control the narrative so that I am not written out of it.” It struck me as funny because that’s exactly what Disney and its peers are trying to do as they flood the market with content and turn a blind eye to the cost. Disney predicts it will have 60 million to 90 million Disney+ subscribers globally by the end of fiscal 2024, when the app finally begins making money. Analysts see Apple TV+ topping 100 million in the next five years, according to Bloomberg News. While both are starting from zero, they do have the advantage of strong, far-reaching customer relationships – Disney through its movies and theme parks, and Apple by physically being in most of our pockets already. Netflix is protecting its turf by lighting it on fire. It’s projected to spend about $15 billion for in-house and licensed content this year while burning $3 billion of free cash flow. The company paid $100 million just to keep “Friends” on its platform through 2019. Even though the sitcom hasn’t aired new episodes in more than 15 years, it’s the second-most-watched program on Netflix. After this year, AT&T is reclaiming the rights to the show for its HBO Max product.A little over a year ago, Casey Bloys, HBO’s programming chief, referred to such spending as “irrational exuberance.” But then earlier this year, his boss, HBO Chairman Richard Plepler, left the company in a shake-up by its new parent AT&T. HBO is now ramping up its production slate to reduce churn, or the rate at which bored subscribers are canceling, and HBO Max is reportedly paying $425 million to carry “Friends” for five years starting in 2020. Likewise, the Wall Street Journal reported that Comcast Corp.’s NBCUniversal has its own $500 million five-year exclusive rights deal for “The Office,” the No. 1 show on Netflix. There is a potential fallacy in the companies’ thinking around these lavish deals: What if Netflix subscribers were streaming “Friends” and “The Office” for hours on end simply for background noise, something to mindlessly tune in and out of as they scrolled Instagram or did chores? In that case, perhaps users won’t necessarily miss those specific shows and won’t switch to other services at a rate that would come close to justifying nearly $1 billion for two old sitcoms. In any case, I keep writing about the frustration of needing to pay for and toggle between numerous apps just to access all your favorite content and the confusion that comes with doing so. It’s only going to get worse once Apple TV+, Disney+ and HBO Max launch. But at least there will be no shortage of stuff to watch, and with all this money being thrown around, you know it’ll be good. To contact the author of this story: Tara Lachapelle at tlachapelle@bloomberg.netTo contact the editor responsible for this story: Beth Williams at bewilliams@bloomberg.netThis 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 deals, Berkshire Hathaway Inc., media and telecommunications. 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.
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(Bloomberg) -- Apple Inc. plans to roll out the Apple TV+ movie and TV subscription service by November, part of a drive to reach $50 billion in service sales by 2020. The company will introduce a small selection of shows and then expand its catalog more frequently over several months, people familiar with the matter said. A free trial is likely as Apple builds up its library, said the people, who asked not to be identified because the plans aren’t public.The iPhone maker is entering an increasingly crowded field, led by streaming pioneer Netflix Inc. and Amazon.com Inc. In the coming months, Walt Disney Co., AT&T Inc. and Comcast Corp.’s NBCUniversal will debut new offerings -- all targeted at the growing ranks of viewers who are canceling cable-TV subscriptions or watching on mobile devices.With its first foray into video subscriptions, Apple is weighing different release strategies for shows. The company is considering offering the first three episodes of some programs, followed by weekly installments, the people said. Netflix tends to release whole seasons at once for bingeing, while AT&T’s HBO and Disney’s Hulu often release episodes weekly. The service will launch globally in over 150 countries. Apple TV+ will be one of five major digital subscription services in Apple’s portfolio, along with Apple Music, the upcoming Apple Arcade gaming service, Apple News+ and iCloud storage subscriptions. The company also generates recurring revenue from products like AppleCare extended customer service and its bank-operated iPhone upgrade program. It will also likely start pulling in revenue from the Apple Card, which began rolling out earlier this month. An Apple spokesman declined to comment.Apple hasn’t announced pricing for Apple TV+, but is weighing $9.99 a month, the people said, which would match Apple Music and Apple News+. Netflix and Amazon Prime charge as little as $8.99, while Disney+ plans to seek $6.99 when its service debuts in November.The Financial Times reported on Tuesday that Apple has set aside $6 billion for original shows and movies, without saying where it got the information. The budget for the first year of content was $1 billion, but has since expanded, it said. That’s far less than what Netflix is expected to spend this year. Analysts forecast it will lay out more than $14 billion on films and TV shows.Revenue DriveApple is pushing into services to generate added revenue from its large base of iPhone, iPad, Mac and Apple Watch users. Consumers have been slower to replace hardware recently due to higher prices, market saturation, economic headwinds and a lack of new, breakthrough features. Read More: Apple Faces Life After IPhone But Still Banks on the IPhoneThe company could head off a revenue slowdown by coaxing users to subscribe to the new services. Cupertino, California-based Apple could also potentially boost revenue by tying services to the iPhone upgrade program, which lets customers update to new models annually via monthly payment plans.Apple’s initial slate of shows will include “The Morning Show,” Steven Spielberg’s “Amazing Stories,” “See” with Jason Momoa, “Truth Be Told” with Octavia Spencer, and a documentary series about extravagant houses called “Home.” On Monday, the company released the second trailer for “The Morning Show,” starring Jennifer Aniston, Reese Witherspoon and Steve Carell. The TV service will be part of Apple’s TV app, which comes installed on the company’s devices, and will also be accessible from third-party products, like Roku and Amazon Fire TV boxes, and Samsung televisions.In the fiscal third quarter, services represented a record 21% of Apple’s sales, while the iPhone continued to dip below 50% of the total.Analysts have suggested Apple TV+ could top 100 million subscribers in the next half-decade, which would make it a major challenger to Netflix and Amazon.The company is making a big commitment to video, including around $300 million alone to two seasons of “The Morning Show,” according to people familiar with the matter.(Updates with budget details in 8th paragraph.)\--With assistance from Nate Lanxon.To contact the reporters on this story: Mark Gurman in San Francisco at mgurman1@bloomberg.net;Anousha Sakoui in Los Angeles at asakoui@bloomberg.net;Lucas Shaw in Los Angeles at lshaw31@bloomberg.netTo contact the editors responsible for this story: Nick Turner at nturner7@bloomberg.net, Thomas PfeifferFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
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