|HOME||MEDIAVILLAGE.com||WOMEN ADVANCING||HOOKED UP||MEMBERSHIP INFO||MEMBER COMPANIES||MEDIA BUSINESS REPORT||ECONOMIC FORECASTS||RESEARCH|
Published: December 23, 2011 at 03:38 PM GMT
Last Updated: July 31, 2013 at 03:38 PM GMT
Media firms are expanding into telecommunications and vice versa. Moves this week show the chess game being waged to control content, measurement, and distribution.
Needham tipped off their initiation of Madison Square Garden (MSG) with a buy rating and a $37 price target. As the holding company for the Forbes-ranked #1 most valuable NBA franchise, the New York Knicks and the #2 NHL team, the New York Rangers, analyst Laura Martin likes what she sees. Citing three near term catalysts, rising ticket prices, strong Ranger performance and higher ROIC, Needham's analyst believes MSG is positioned strongly in an era that values brands, sports, and live events.
World of Warcraft continues to lose players – in line with investors' expectations – according to a recent Goldman Sachs report on parent gaming company, Activision Blizzard (ATVI). The game accounts for 40% of 2011 operating income for Activision and has lost about 2 million paying players this year. Goldman sees lighter story-lined, more frequently-updated and free-to-play games becoming more popular for gamers, competing with WoW. But even with these declines, GS's Brian Karimzad maintains his buy on ATVI, based on expectations of new game Diablo 3 and an expansion pack for WoW.
Investors pushed Yahoo! (YHOO) stock up on the back of a New York Times story that the media firm's board was considering a sale of the company's Asian assets. The proposed deal values Yahoo's 40 percent in Alibaba at about $12 billion, and its 35 percent stake in Yahoo Japan at about $5 billion. Needham's analyst Laura Martin applauded the proposal's terms. "Since cash and equivalents at 9/30/11 were $2.8B, that would imply that, at current valuation levels, YHOO shareholders would be valued at almost nothing for the US search and display internet advertising businesses," she said in a note to investors. JP Morgan's Doug Anmuth likes the deal as well and sees a stock worth over $20 eventually. According to Needham's Martin, the biggest risk to this deal is that without a CEO, no one's quite confident what the firm would do with the cash influx.
Investors quickly disembarked from TripAdvisor's (TRIP) spinoff this week from parent Expedia (EXPE), sending the stock down almost 20%. While Barclay's Perry Gold may be somewhat cool on Expedia, he does like TRIP's leadership in online travel advertising and strong market positioning. He has a $30 price target on the new spinoff and $34 on EXPE, post transaction.
Now that ATT's (T) $39B takeover bid for T-Mobile's officially over, investors scurried to identify the next target. DISH Network (DISH) emerged as perhaps the next company that ATT acquires, and stock surged over 8% in strong trading this week.
If it's all about acquiring spectrum, DISH appears to be a smart choice. On AT&T's plans, Stifel Nicolaus' Chris King says: "It's either DISH or waiting for the next spectrum auction." The analyst said because DISH has no wireless customers, and AT&T doesn't provide TV nationally, regulators may consider a proposed deal more kindly than they did the T-Mobile merger.
If investors had any reservations about Amazon's (AMZN) seriousness towards its tablet Kindle line, they were shattered this week by a Reuters article that said the firm had considered making a bid on mobile phone play, RIM (RIMM). While no formal bid was entered, JP Morgan's Shelby Taffer believes the interest in RIMM stemmed from AMZN's intention to "build its patent portfolio to defend the Kindle Fire from lawsuits that have plagued other Android device manufacturers such as HTC and Samsung." Amazon also reported this week that Kindle sales are tracking strongly, selling about 1MM per week in the holiday season, despite some mixed reviews of the device.
Telco 2.0 published its analysis of the top 7 strategy themes of 2011 in telecommunications. These themes, which include disruption by new media players like Google and Facebook, cloud services, and connected TV comprise a 284 page report the research company recently produced on the industry.
A sign of the times or just bad publicity? GigaOM reported that long-standing keynoter at the Consumer Electronics Show, Microsoft (MSFT), will not be headlining the event in years to come. According to GigaOM's Barb Darrow, "The CES stage gave Microsoft the opportunity to show that it could do more than business productivity software, that it could be a player in the cool world of consumer electronics." The software firm has been hit-and-miss in its foray into consumer electronics – with successes like the Xbox and Kinect and big flops like the Zune. MSFT was up 1% in trading this week.
"Now they're frenemies." At least that was the title of DB's Matt Chesler's research piece about a settlement made this week between two media measurement leaders, comScore (SCOR) and Nielsen (NLSN). Long an overhang for comScore stock, Chesler believes the resolution of this intellectual property dispute clears the way for both companies to collaborate in the future. They share customers, similar approaches to data collection, and are both strong internationally.
You are receiving this e-mail as a corporate subscriber to Jack Myers Media Business Report. Re-distribution in any form, except among approved individuals within your company, is prohibited. As a subscriber you have full access to all archives and reports at www.jackmyers.com. If you require your ID and password, contact email@example.com
The Beverly Billionaires, Or How to Make Podcasts Profitable
Take a good look at the photo above. Through the 1970's those four faces drove about a billion dollars to CBS and producer Mark Goodson. They were the original stars of “The Match Game.” From 1973-1982 they dominated daytime TV ratings and profits. Same scenery year to year. Incredibly small prizes. Absolutely no challenging Q&As.
Will the “Cable” Bundle Die? Or Has It Just Splintered?
Well, sure. It’ll die. And be reborn. Just not quite like you might imagine. So we’ve got Dr. John Malone’s promised 500 channels and we only watch 17 or so regularly. We watch another dozen or so when something -- often social-network activity -- drives us to do so. “Everyone” (whoever that is) complains about paying for all those channels everyone doesn’t watch.
Is TV's Big Food Gravy Train Being Derailed?
Big Food has a bellyache, and it's giving Madison Avenue a migraine. The problem for the nation's packaged-food giants is that consumer tastes are changing faster than they seem to be capable of keeping up with.
Has the 2015-16 Television Season Begun? You Could Fool Me.
The opening weeks of the 2015-16 television season are turning out to be a strange time for everyone. Not a single new show has generated any palpable excitement, including those that are early “successes,” including NBC’s “Blindspot” (pictured above), Fox’s “Rosewood,” CBS’ “Limitless” (pictured below) and ABC’s “Quantico.” Meanwhile, the traditional impact of opening night/next day ratings reports finally has been neutralized, allowing under-performing programs (of which there are many) to linger longer than ever before and slowly get their numbers up via DVR and VOD.
Navigating the eSports Sponsorship Market
The eSports phenomenon has taken flight -- and its sponsorship marketplace is beginning to take shape.
Public Broadcasting Podcasts: Stories Worth Selling
The voracious consumer appetite for podcasts is paying off for the usually outstretched hand of public broadcasting. Even the “seen everything” agency types at last week’s Advertising Week conferred star status on the three panelists set to reveal the secret sauce that makes their public broadcasting podcasts so popular and so compelling for exposure-hungry brands.
Nine TV Research Companies: Comparative Attributes
This is the fourth installment in our series “What are Data Companies Contributing to the TV Market?” about the various data solutions for television measurement being offered by data companies in the industry. In the column that follows we will delve into the attributes of the data and its use in television.
Outbrain Recommends Newspaper
One of the things that Bill Maher has said he values most from newspapers is the content he didn’t know he would find when he moved through their pages.
Amid All the Digital Hype, Don’t Forget: TV Wins Elections!
Political campaigns are about winning. As we head into the 2016 election cycle, campaign managers and their media strategists would be well served by keeping in perspective the myriad new digital advertising platforms available to them and their utility in helping them win, because while digital tools are a great supplement to the tried and true method of reaching voters through local broadcast television, a political campaign focused primarily on digital tools risks losing if decision-makers don’t keep the facts in mind.
Here's how America's Most Popular Apps will Reshape Media
Look out! America's most popular apps will reshape media!
The Rising Quality Standard for Online Video
Traditional video content creators, you’ve got a problem.
Agency Reviews Decided at a Cost of Millions
Slowly but surely the pitch cycle turns, as a few more mega clients involved in pitch-bonanza-time declare their results and decide on a home for their media budgets. There’s a certain and rather pleasing symmetry to the recent set of results. Three recent results, three different solutions.
"Netflix and Chill": Binge-Watching Reaches a Whole New Level
This week, on Mindshare’s Culture Vulture Live, Aimee Goldfarb talks about the evolution of Netflix in culture. TV addicts, this news is for you: Netflix is playing to the makers movement with the announcement of a connected button called “Netflix and Chill." While you can’t actually purchase the button, Netflix has published instructions for how to create this homegrown device.
Executive Perspectives: Jack Myers
Jack Myers is a Media Ecologist, and as such, he studies media agencies and how these agencies are choosing to spend their media money and on whom they are choosing to spend their money on. The emergence of digital video and the Internet of things (IoT) are massive industry game-changers, as marketing data can come from a multitude of sources. The data is all about the usage, the interpretation and the application of data and this is how media agencies need to position themselves in order to evolve within the industry. Myers has noticed the changes in the bigger media landscape as well. Many networks have moved from a more traditional, impression-based model to a performance-based model, therefore continuing to capitalize on all the emerging trends.
Screenvision Names John Partilla as Chief Executive Officer - Press Release of the Week
Media and Marketing Veteran's Proven Track Record of Innovation Well-Suited to Lead Screenvision into New Era of Growth