As consumers shift their content consumption, the media giants must adapt.
For some time now consumers have been changing their media consumption habits, cancelling traditional cable bundles in favor of (bundling) streaming services. This has caused ripple effects for media giants Comcast (NBC, Peacock), the Walt Disney Company (ABC, ESPN, Disney Plus, Hulu), Warner Brothers (HBO) and Paramount Global (CBS, Showtime), among others, as they try adapt to the ground shifting underneath of them.
Recent examples include Paramount Global agreeing to be acquired while Comcast officially announcing plans to spin off the lion share of its cable network empire in order to focus more on its Peacock streaming business and theme parks, along with its core connectivity business.
Two things have become clear despite all the shake up: 1) advertising still works (see Hulu, Netflix new advertising business, etc); and 2) as a result, live sports is the king of content (advertisers still see the value). This is a battleground between "new media" and "old media". Netflix streaming the Mike Tyson vs Jake Paul boxing match, and signing a deal to stream the NFL on Christmas Day. Amazon paying up for NFL and NBA streaming rights. YouTube's deal with for NFL Sunday Ticket.
This puts "old" or traditional media companies on notice, and you can see the results... Walt Disney, Fox, Paramount and Comcast have all signed very rich deals with the sports leagues, while the Walt Disney Company is touting plans for a new "flagship" ESPN-branded sports product due in 2025.
There is much more to shake out in this industry, but be cautious not to get caught up in too much of the short-term noise.
So let's to take a look at the charts!
See below monthly price charts for each of these major media companies, along with Netflix and niche streaming provider Roku. Note, while Google (YouTube) and Amazon (Prime, MGM) are major players in streaming media, those units are a relatively small component of their larger business, respectively.
Note, while Google (YouTube) and Amazon (Prime, MGM) are major players in streaming media, those units are a relatively small component of their larger business, respectively.
As always, pay close attention to the trend lines and the Energy Model when studying the price charts on the Socrates Platform. When the Energy Model spikes well above its moving average, it is at a higher risk of losing momentum, which could mean a change in direction may be ahead. But, keep in mind when studying a market that the daily time level is most prone to higher volatility and price movement while the monthly time level tends to provide a cleaner view of market trends.
Remember, a change in direction can just be a short-term move or brief market correction, it does not necessarily mean it is a true change in longer term trend. This is why studying market behavior consistently, and across multiple time levels is necessary.
Log in to research these and other global financial markets. Go beyond the charts using the Global Market Watch patterns (monthly, quarterly and yearly in particular) and the Indicating Ranges on a monthly closing basis. See how - or if - price movement aligns with what different technical indicators and computer models are picking up on across various time levels (weekly, monthly, etc). This can help shed light on what might be ahead on both a short and long term basis.
Pro and Enterprise members can go deeper with the Reversal System and Timing Arrays, as they look for potential turning points ahead.
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