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The increased focus of media companies to license film and television content to sites such as...

The increased focus of media companies to license film and television content to sites such as Amazon and Netflix is irresistible due to the lush margins for streaming video on demand, but the trend also poses a long-term threat to the traditional TV advertising model as new generations of audiences become accustomed to SVOD viewing habits. What to watch: Content companies need to maximize profits without cannibalizing TV ratings for hit shows. Look for more quick SVOD profit hits from CBS (CBS), Discovery Communications (DISCA), Time Warner (TWX), and Viacom (VIA, VIAB) while News Corp. (NWS, NWSA) and Disney (DIS) may have broader streaming plans in mind.
Comments (1)
  • There is much more money to be made on the Internet via video content as it relates to subscription fees and advertising.

     

    This is why Google should be investing significantly to develop YouTube. Over time, if and when the migration occurs, we could possibly see the Viacoms, Discoverys, CBS, etc. use their own platforms as distribution of content and generate higher advertising through video against sites like YouTube, Yahoo, AOL, and Tudou, etc.
    16 Mar 2013, 11:52 AM Reply Like
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