Wall St. Speaks Out on YouTube, News Corp, Disney, AOL and More - 5-10-13
Following the sale of YouTube network AwesomenessTV to DreamWorks for $33 million, Barclays' analyst Ryan Ripp said, "…it is clear that YouTube has emerged as a new type of major video content distribution platform, and a major business that adds value for both Google and content creators." Google's ( GOOG) video platform accounted for over 34% of total online US video views, according to last week's earnings report. In new research, Ripp estimated YouTube generates $3.6B and $4.3B for GOOG with operating margins as high as 35%. Backing out the business, the analyst calculated that YouTube is worth between $15.6B and $21.3B or $46 - $63 per GOOG share. Both AwesomenessTV founder Brian Robbins and DreamWorks' Jeffrey Katzenberg appeared at YouTube's recent Newfront presentation.
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As Upfront Moves, Digital Waits for Newfront Payoff
Finally! After nearly four months and 100+ Outfront, Newfront and Upfront presentations, it's time for advertisers and their media agency partners to get down to work and place their bets. Last week, I published my Upfront Volume and Cost-per-Thousand Forecasts . It's unlikely there will be any major surprises in this year's negotiations, even though Internet Advertising Bureau members significantly ramped up their efforts this year, investing an estimated $50 million in Newfront presentations and parties (not including their content investments) in hopes of extracting just a fraction of the budgets advertisers will commit to broadcast and cable networks.
Network TV Upfront Cost Inflation Forecast 2013/2014
This year's Upfront negotiations are likely to unfold as an almost-carbon copy of last year's, with cost-per-thousand inflation running slightly below last year's final results. The annual Myers Upfront Inflation Forecast is published below, reflecting the composite perspectives of buyers and sellers plus Myers' proprietary economic analysis. Over the past decade, Myers' forecasts have been recognized as the most accurate industry assessments of economic market realities.
