Warning shots fired from movie heavyweights on future of industry

|By:, SA News Editor

DreamWorks Animation (DWA) CEO Jeffery Katzenberg fired out a warning to the movie industry during his talk at the Milliken Global Conference in Beverly Hills last week.

“Movies are not a growth business,” exclaimed the exec who cut his teeth on the medium.

Katzenberg sees a future where movies play for a short period of three weeks at theaters for $15.00 - followed by a run on TV at $4.99 and smartphones at $1.99. The forecast doesn't bode well for theater operators and associated businesses.

DreamWorks plans increasing its focus on shortform (digital and TV) in response.

Liberty Media (LMCA) CEO Greg Maffei also cautioned at the conference of a seismic change in the media industry as "clutter" from video games and social media crowds out traditional entertainment channels.

Movie studio stocks: DIS, LGF, SNE, VIAB, TWX, FOXA, VIA, CMCSA

Movie exhibitor/equipment stocks: CKEC, CNK, RGC, MCS, RDI, AMC, IMAX, DCIN

Related ETF: PBS