Hot Media Stocks For 2015


Celgene Corporation (NASDAQ:CELG) is turning out be a low-risk long-term growth story and still looks cheap despite surging more than 100 percent last year.

Celgene is a global biopharma company focusing primarily on cancer and inflammation. The company’s key products are Revlimid (for multiple myeloma and myelodsyplastic syndromes), Thalomid (for multiple myeloma), Pomalyst (for relapsed-refractory myeloma), Vidaza (for myelodysplastic syndromes), and Abraxane (for breast, lung, and pancreatic cancers). Celgene’s most advanced pipeline candidate Apremilast for inflammation disorders is expected come to market in 2014.


[Related -Celgene Corporation (CELG): How Q3 Earnings Will Fare?]

The news flow has been supportive of long term growth in the Celgene model, in particular the results of the MM-020 trial, which is being studied for Revlimid in combination with dexamethasone in patients newly diagnosed with multiple myeloma.

Hot Media Stocks For 2015: Charter Communications Inc.(CHTR)

Charter Communications, Inc., through its subsidiaries, provides entertainment, information, and communications solutions to residential and commercial customers in the United States. The company offers cable video programming services, such as basic and digital video, premium channels, OnDemand, pay-per-view, high definition television, digital video recorder, and online video services; Internet services; Charter.net, which provides multiple e-mail addresses, as well as various entertainment, games, news, and sports content; and telephone services. It also provides broadband communications solutions, such as Internet access, data networking, fiber connectivity to cellular towers and office buildings, video entertainment services, and business telephone services under the Charter Business brand name to business and carrier organizations. As of December 31, 2011, the company served approximately 4.1 million video customers; approximately 3.5 million Internet customers; appr oximately 1.7 million telephone customers; and approximately 476,200 commercial primary service units. Charter Communications, Inc. was founded in 1999 and is based in St. Louis, Missouri.


Advisors’ Opinion:

  • [By Tom Rojas and Maria Armental var popups = dojo.query(“.socialByline .popC”); ]

    Charter Communications Inc.(CHTR) said its residential customer base grew by 5% as growth in its Internet and voice services helped offset a decline in video subscribers. Shares were inactive premarket.

  • [By WWW.DAILYFINANCE.COM]

    Susan Walsh/APComcast CEO Brian Roberts at The Cable Show 2013 convention in Washington. Comcast offered to sell 1.4 million pay TV subscribers to Charter Communications for $7.3 billion as part of a transaction aimed at winning regulatory approval for its proposed $45 billion takeover of Time Warner Cable. Comcast (CMCSA) also said it would divest another 2.5 million subscribers into a new publicly traded company, dubbed SpinCo for now, to be one-third owned by Charter (CHTR) and two-thirds by Comcast shareholders. The deal would make Charter — whose own bid for Time Warner Cable (TWC) was thwarted by Comcast’s higher offer — the second-biggest U.S. pay TV company with 5.7 million customers, overtaking Cox Communications. Charter’s shares rose as much as 10 percent to $142.70 in early trading Monday. Comcast shares were up 1.4 percent at $51.70. Comcast would have less than 30 percent of the U.S. residential cable or satellite TV market after the deal, the company said in a statement. The agreement is contingent on Comcast’s Time Warner Cable deal being approved by the Justice Department and the U.S. Federal Communications Commission, a process that could take many months. Analysts said the deal was a pre-emptive move by Comcast ahead of a review of the deal by regulators. “Comcast wanted to do this deal now with Charter so it could get in front of regulators at the Justice Department and the FCC at the same time as the Time Warner Cable deal,” a source familiar with the matter said. The source said there was a standstill agreement with Charter stipulating that it can’t gain full control of SpinCo for four years. Comcast will have no ownership in SpinCo. SpinCo would have an estimated enterprise value of $14.3 billion and an equity value of $5.8 billion, Charter and Comcast said in an investor presentation. The divestments, mostly in the U.S. Midwest, would deliver about $19.5 billion in value to Comcast shareholders, the companies said. “For

  • [By Lauren Pollock var popups = dojo.query(“.socialByline .popC”); popups.forEach]

    Comcast Corp.(CMCSA) and Charter Communications Inc.(CHTR) reached an agreement for Comcast to divest millions of subscribers, helping it smooth over regulatory concerns involving its $45 billion deal for Time Warner Cable Inc.(TWC) As part of the agreement, Comcast will divest about 1.4 million existing Time Warner Cable customers directly to Charter for cash. Shares of Charter edged up 1.5% to $132 premarket.

Hot Media Stocks For 2015: Cablevision Systems Corporation (CVC)

Cablevision Systems Corporation provides telecommunications and media services. It operates in two segments, Telecommunications Services and Other. The Telecommunications Services segment is involved in television business, including video, high-speed data, and VoIP operations, as well as the provision of commercial data and voice services. The Other segment offers Newsday, a daily newspaper; amNewYork, a free daily newspaper; and Star Community Publishing, a group of weekly shopper publications; and newsday.com and exploreLI.com. This segment also engages in motion picture theatre business, Clearview Cinemas; provision of the News 12 Networks, a regional news programming services; and the MSG Varsity network, a network covering high school sports and activities, and other local programs, as well as cable television advertising. Cablevision Systems Corporation was founded in 1985 and is headquartered in Bethpage, New York.


Advisors’ Opinion:

  • [By Will Ashworth]

    Losing control of the Cablevision (CVC) spinoff will ultimately be better for the Dolans than if they try to go it alone.

    This scenario’s likely a long shot, but I think it makes a lot of sense.

  • [By Anna Prior]

    Cablevision Systems Corp.(CVC) said it swung to a profit in the first quarter, driven by higher rates and advertising sales that boosted its cable revenue.

  • [By WWW.DAILYFINANCE.COM]

    ‘Interconnection’ The better access that Netflix is getting from Comcast is known as “interconnection,” a term referring to digital content’s journey to an Internet service provider’s gates. That path technically isn’t covered by the current definition of Net neutrality, which refers to how service providers treat digital content once it’s inside the gates. Comcast has promised to honor the previous rules governing Net neutrality through 2018. In a blog post last month, Hastings argued that future Net neutrality guidelines should be expanded to address interconnection issues, too. “Without strong Net neutrality, big ISPs can demand potentially escalating fees for the interconnection required to deliver high quality service,” Hastings wrote. “The big ISPs can make these demands — driving up costs and prices for everyone else — because of their market position.” Google’s YouTube video site and many other websites were paying interconnection fees to Comcast before Netflix struck its own deal with the carrier. Even with the March improvements, Comcast’s delivery of Netflix content lags behind several other major service providers. Cablevision (CVC), Cox, Suddenlink and Charter (CHTR) each delivered Netflix video at higher speeds than Comcast in March, according to Monday’s breakdown. Netflix has interconnection deals with Cablevision, Cox and Suddenlink, although those arrangements don’t require Netflix to pay fees.

Hot Media Stocks For 2015: News Corporation(NWSA)


News Corporation operates as a diversified media company worldwide. Its Cable Network Programming segment produces and licenses news, business news, sports, general entertainment, and movie programming for distribution through cable television systems and direct broadcast satellite operators primarily in the United States, Latin America, Europe, and Asia. The company?s Filmed Entertainment segment produces and acquires live-action and animated motion pictures for distribution and licensing in entertainment media, as well as produces and licenses television programming worldwide. Its Television segment operates 27 broadcast television stations in the United States. The company?s Direct Broadcast Satellite Television segment distributes programming services via satellite and broadband directly to subscribers in Italy. Its Publishing segment provides newspapers and information services, such as publishing national newspapers in the United Kingdom, approximately 146 newspapers in Australia, and a metropolitan and a national newspaper in the United States; book publishing services, including the publishing of English language books worldwide; and integrated marketing services comprising the publishing of free-standing inserts, which are marketing booklets containing coupons, rebates, and other consumer offers, as well as provides in-store marketing products and services, primarily to consumer packaged goods manufacturers in the United States and Canada. The company also sells advertising, sponsorships, and subscription services on the company?s various digital media properties and outdoor advertising space on various media primarily in Russia and eastern Europe; and provides data systems and professional services that enable teachers to use data to assess student progress and deliver individualized instructions. News Corporation was founded in 1922 and is headquartered in New York, New York.


Advisors’ Opinion:

  • [By Peter Graham]

    The Q3 2014 earnings report for mid cap online real estate information stock Zillow Inc (NASDAQ: Z), a peer of small cap Move Inc (NASDAQ: MOVE) which News Corp (NASDAQ: NWSA) is acquiring and small cap Trulia Inc (NYSE: TRLA) which Zillow is also acquiring, is scheduled for after the market’s close on Wednesday (November 5th). Aside from the Zillow Inc earnings report, it should be said that Move Inc reported Q2 2014 earnings on July 29th (revenue rose 7% to $61.3M, average monthly unique users of realtor.com®’s web and mobile sites grew 18% to 31.2M and Non-GAAP Loss Per Share was $0.03 per diluted share verses Non-GAAP Earnings Per Share of $0.11) and Trulia Inc reported Q3 2014 earnings on October 29th (total revenue rose 67% to $67.1M along with an adjusted net loss of $2.8 million, or $0.08 per share on a basic and diluted basis, compared with adjusted net income of $9.1 million, or $0.26 and $0.24 per share on a basic and diluted basis, respectively). The acquis ition of Move Inc and Trulia Inc though (assuming the Federal Trade Commission approves the deal) really leaves Zillow Inc as the main publicly traded online real estate information. 

  • [By Lisa Levin]

    Move (NASDAQ: MOVE) shares moved up 36.89% to $20.93. The volume of Move shares traded was 19966% higher than normal. Move agreed to be acquired by News Corp (NASDAQ: NWSA) for $21 per share, or $950 million.

Hot Media Stocks For 2015: Time Warner Cable Inc(TWC)

Time Warner Cable Inc., together with its subsidiaries, operates as a cable operator in the United States. It offers video, high-speed data, and voice services over its broadband cable systems to residential and commercial customers. The company provides a range of video services, including on-demand, high-definition (HD), and digital video recorder (DVR) services; residential high-speed data services with connection to the Internet; wireless mobile broadband Internet services; and digital phone services to residential customers. It offers video programming tiers and music services; high-speed data, networking, and transport services; and commercial digital phone service to small and medium-sized businesses under the Time Warner Cable Business Class brand. Further, Time Warner Cable Inc. sells advertising to various national, regional, and local customers. As of June 30, 2011, the company served approximately 14.5 million residential and commercial customers in the New Yor k State, the Carolinas, Ohio, southern California, and Texas. Time Warner Cable Inc. is based in New York, New York.


Advisors’ Opinion:

  • [By Brian Stelter]

    Theoretical distributors include theater chains like AMC and Regal, if they’re willing to reverse their prior decision; cable video-on-demand operators like Comcast (CCV) and Time Warner Cable (TWC); subscription streaming sites like Netflix and Amazon (AMZN, Tech30); and movie rental services like iTunes by Apple (AAPL, Tech30).

  • [By WWW.DAILYFINANCE.COM]

    www.funnyordie.com Funny or Die, a website that attracts A-list celebs to skewer hands-off topics, has hired a financial adviser to investigate options, which could include a sale. “We’ve received unsolicited interest from a number of companies,” Bloomberg says CEO Dick Glover told employees in a memo. “We are NOT trying to sell Funny or Die, but we thought it wise to engage some experts to help us evaluate the situation. In the meantime, if any of you mistakenly receive a briefcase full of cash, please bring it to my office immediately.” Hahahahaha. “The asking price is $100 million to $300 million, people with knowledge of the matter said,” Bloomberg reported. Satire in Short Doses Funny or Die — the brainchild of Will Ferrell, Adam McKay and Chris Henchy — uses short-form videos to satirize popular topics. Its first video, “The Landlord,” has been viewed 82 million times. “Porn Stars Explain Net Neutrality” riffs on a current controversy. Its popular celeb-grab, “Between Two Ferns,” features Zack Galifianakis asking the super-famous super-embarrassing questions. Most notably, Galifianakis interviewed President Obama, apologizing to the leader of the free world for cancellng three times. The president tried gamely to match Galifianakis’ wit, but it was like watching a kitten try to out-roar a lion. As the president promoted his then-new Affordable Care Act, Galifianakis checked his watch, shifted in his seat, then asked, “Is this what they mean by drones?” Although the site is irreverent, it’s not exactly anti-establishment, at least when it comes to money. Time Warner (TWC) is a minority stakeholder and Sequoia Capital has delivered funding; and Under Armour (UA), General Motors (GM) and Pepsi (PEP) have hired it to produce entertainment videos, Bloomberg said. More from Lisa Kaplan Gordon
    •Does Money Make Us Happy? Yes. No. Maybe. •BlackBerry Hangs Up on Kim Kardashian’s Spokesmodel Offer •Unilever Sues Just Mayo, Claims

Hot Media Stocks For 2015: CBS Corporation(CBS)


CBS Corporation, together with its subsidiaries, operates as a mass media company in the United States and internationally. The company?s Entertainment segment distributes a schedule of news and public affairs broadcasts, sports, and entertainment programming; produces, acquires, and distributes programming, including series, specials, news, and public affairs; produces and distributes theatrical motion pictures across various genres; and operates online content networks for information and entertainment. Its Cable Networks segment owns and operates multiplexed channels that offers subscription program services, including recently released theatrical feature films, original series, documentaries, boxing, mixed martial arts and other sports-related programming, and special events; and CBS College Sports Network, a 24-hour cable program service related to college sports. This segment also owns and manages Smithsonian Networks, which operates Smithsonian Channel, a basic cab le service in the United States. The company?s Publishing segment publishes and distributes adult and children?s consumer books in printed, audio, and digital formats. Its Local Broadcasting segment owns 29 broadcast television stations; owns and operates 130 radio stations in 28 U.S. markets and related online properties; and owns local Websites that combine television and radio local media brands online to provide the latest news, traffic, weather, and sports information, as well as local discounts, directories, and reviews. The company?s Outdoor segment sells advertising space on various media, including billboards, transit shelters and other street furniture, buses, rail systems, mall kiosks, stadium signage, and in retail stores. CBS Corporation was founded in 1986 and is headquartered in New York, New York.


Advisors’ Opinion:

  • [By Brian Stelter]

    More recently, the CBS broadcast network was blacked out for about 12 hours in some major markets due to a separate dispute between Dish and CBS Corporation (CBS).

  • [By WWW.DAILYFINANCE.COM]

    Nathaniel E. Bell/APA scene from Netflix’s “House of Cards,” starring Kevin Spacey and Jackie Sharp. NEW YORK — Americans are turning away from live TV on the tube and tuning in to streaming services, a Nielsen report says. That’s bad news for cable and satellite TV providers. Americans are increasingly watching TV shows and movies on Netflix (NFLX), Hulu, Amazon.com (AMZN) streaming and other services. CBS (CBS) and HBO (TWX) have announced standalone streaming services as well. About 45 percent of Americans stream television shows at least once a month, according to research firm eMarketer. That number is expected to increase to 53 percent or 175 million people by 2018, it says. According to the Nielsen report, which came out Wednesday, the average daily time spent watching live TV fell 12 minutes in the third quarter to four hours and 32 minutes. That means it dropped nearly 4 percent to 141 hours a month. Meanwhile, time spent watching streaming services jumped 60 percent to nearly 11 hours each month. That’s still a small amount compared with live TV, but it is growing quickly. “Content is still king, but consumers are shaping their own content-discovery experience, and the evolving media landscape has not lessened consumer demand for quality, professionally produced content,” Dounia Turrill, senior vice president of insights at Nielsen, said in a statement. “What has changed is the number and reliability of new media available to viewers.” Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. More from The Associated Press
    •Takata: Evidence Doesn’t Support National Air Bag Recall •Market Wrap: Energy Stocks Lead an Advance on Wall Street •Hershey Explores Removing High-Fructose Corn Syrup

  • [By WWW.DAILYFINANCE.COM]

    Getty Images For a lot of people, the end of the year is a time of celebration. Not just because of the holidays and family – but also for the big end-of-the-year bonus that gets paid out for all the work you’ve done over the last 12 months. More than half of all employers give out a year-end bonus that might be monetary in nature or come in the form of other benefits like gifts cards or employee gift registries. Monetary bonuses can differ in appearance too from direct paycheck compensation to 401(k) contributions. Some people refer to this type of bonus as a Christmas bonus. While bonuses have experienced a downward trend over the last few years due to the recession, the average bonus was about 1.3 months of salary in 2013, according to JobsDB.com. Wall Street Takes the Cake for Year-End Bonuses It’s no secret that the biggest year-end bonuses go to those who work on Wall Street. These bonuses can run from a few thousand for a secretary to millions for higher-level management. In 2013, the average Wall Street bonus rose 15 percent to $164,530, according to The New York Times. That’s still tame compared to the biggest bonuses paid out to Wall Street executives. The top three bonuses of 2013 – paid to Michael Farrell, Ian Cumming and Leslie Moonves – alone added up to around $84 million, according to Forbes. Farrell’s bonus was earned on only a partial year of work. $29 million -– Michael Farrell, former CEO of Annaly Capital Management $27.5 million -– Ian Cumming, CEO of Leucadia National Corp. $27.5 million -– Leslie Moonves, CEO of CBS (CBS) While we can safely assume these people have a huge tax bill at the end of the year, you might be surprised to know that – whether you received one hundred thousand dollars or just a few hundred bucks – the tax rate on bonuses remains the same for most. How Your Bonus Gets Taxed The first thing you’ll probably notice when receiving a bonus check is how much gets taken out in taxes. It’s not

  • [By WWW.DAILYFINANCE.COM]

    Getty Images The stream is about to turn into a gush. Streaming video-on-demand purveyors like Netflix (NFLX), Hulu and Amazon.com (AMZN) are set to open their wallets a lot wider for content. And where will that cash flow? For the most part, into the bank accounts of the content producers, specifically the Hollywood TV industry. The Fight for Eyeballs As everyone expected with the advance of streaming technology (and the bandwidth to accommodate it), video on demand has become one of the hottest items in entertainment. The evolution has been fast. Five years ago, Amazon’s Prime was essentially just a subscription service that provided free two-day shipping of physical goods for its members. Since 2011, though, it’s been an increasingly aggressive player in the streaming market. Amazon doesn’t break down the figures it spends on streaming video; nevertheless, its “technology and content” expenses line item was $6.6 billion in the first nine months of this year. That was 41 percent higher than in the same period last year, and the amount comprised nearly 10 percent of the company’s total net sales. According to an estimate from Bernstein Research, Amazon is set to spend $1.5 billion to $2 billion this year on streaming syndication and original content, which should balloon to more than $2.5 billion in 2015. It’s in good company. Its two most prominent rivals, Netflix and Hulu — a joint venture of units from Comcast (CMCSA), 21st Century Fox (FOX) and Disney (DIS) — are also prepared to write big checks. According to Variety, an analysis from RBC Capital Markets estimates that the troika will spend a collective $6.8 billion on such content next year. That’s a chunky 31 percent increase from the anticipated 2014 figure of $5.2 billion. That higher spend is going both to the original content that has proliferated on such channels (series like Netflix’s “Orange Is the New Black”), films, and syndication rights for such broadcast TV series as “The Blackli

Hot Media Stocks For 2015: Time Warner Inc.(TWX)


Time Warner Inc. operates as a media and entertainment company in the United States and internationally. It operates in three segments: Networks, Filmed Entertainment, and Publishing. The Networks segment provides domestic and international networks, premium pay and basic tier television programming services, and digital media properties, which primarily consist of brand-aligned Websites. Its premium pay television services consist of the multi-channel HBO and Cinemax premium pay television services. This segment provides programming to cable system operators, satellite service distributors, telephone companies, and other distributors; sells advertising; and licenses original programming to domestic and international television networks. The Filmed Entertainment segment produces and distributes feature films, television and other programming, and videogames; distributes home video products; and licenses rights to its feature films, television programming, and characters. T he Publishing segment publishes magazines and books; and operates various Websites, as well as engages in marketing services and direct-marketing businesses. This segment publishes magazines on style and entertainment, lifestyle, news, and sports. The company?s brands include TNT, TBS, CNN, HBO, Cinemax, Warner Bros., New Line Cinema, People, Sports Illustrated, and Time. Time Warner Inc. was founded in 1985 and is headquartered in New York, New York.


Advisors’ Opinion:

  • [By WWW.DAILYFINANCE.COM]

    Nathaniel E. Bell/APA scene from Netflix’s “House of Cards,” starring Kevin Spacey and Jackie Sharp. NEW YORK — Americans are turning away from live TV on the tube and tuning in to streaming services, a Nielsen report says. That’s bad news for cable and satellite TV providers. Americans are increasingly watching TV shows and movies on Netflix (NFLX), Hulu, Amazon.com (AMZN) streaming and other services. CBS (CBS) and HBO (TWX) have announced standalone streaming services as well. About 45 percent of Americans stream television shows at least once a month, according to research firm eMarketer. That number is expected to increase to 53 percent or 175 million people by 2018, it says. According to the Nielsen report, which came out Wednesday, the average daily time spent watching live TV fell 12 minutes in the third quarter to four hours and 32 minutes. That means it dropped nearly 4 percent to 141 hours a month. Meanwhile, time spent watching streaming services jumped 60 percent to nearly 11 hours each month. That’s still a small amount compared with live TV, but it is growing quickly. “Content is still king, but consumers are shaping their own content-discovery experience, and the evolving media landscape has not lessened consumer demand for quality, professionally produced content,” Dounia Turrill, senior vice president of insights at Nielsen, said in a statement. “What has changed is the number and reliability of new media available to viewers.” Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. More from The Associated Press
    •Takata: Evidence Doesn’t Support National Air Bag Recall •Market Wrap: Energy Stocks Lead an Advance on Wall Street •Hershey Explores Removing High-Fructose Corn Syrup

  • [By Adam Levy]

    Following in the footsteps of Time Warner (NYSE: TWX  ) and HBO, CBS (NYSE: CBS  ) plans to offer Showtime without a cable subscription. Speaking on the company’s third-quarter earnings call last week, CBS CEO Les Moonves told analysts, “We could say fairly definitely, sometime in ’15, there will be some [over-the-top] service from Showtime.”

  • [By Garrett Cook]

    Time Warner (NYSE: TWX) reported upbeat earnings for the third quarter.

    The New York-based company posted a quarterly net profit of $967 million, or $1.11 per share, versus a year-ago profit of $1.18 billion, or $1.26 per share. Adjusted EPS rose to $1.22 from $0.91. However, adjusted earnings, excluding tax benefit, came in at $0.97 per share.

Hot Media Stocks For 2015: Comcast Corporation(CMCSA)


Comcast Corporation, together with its subsidiaries, provides entertainment, information, and communications products and services in the United States and internationally. Its Cable Communications segment provides video, high-speed Internet, and phone services to residential and business customers. As of June 30, 2011, its cable systems served approximately 22.5 million video customers, 17.5 million high-speed Internet customers, and 9.1 million phone customers. The company?s Cable Networks segment operates cable entertainment networks, such as USA Network, Syfy, E!, Bravo, Oxygen, Style, G4, Chiller, Sleuth, and Universal HD; news and information networks, including CNBC, MSNBC, and CNBC World; cable sports networks comprising Golf Channel and VERSUS; regional sports and news networks; international entertainment, and news and information networks, such as CNBC Europe, CNBC Asia, and Universal Networks International portfolio of networks; cable television production oper ations; and digital media properties consisting primarily of brand-aligned Websites and other Websites, such as DailyCandy, Fandango, and iVillage. Its Broadcast Television segment operates the U.S. broadcast networks, NBC and Telemundo; 10 NBC and 15 Telemundo owned local television stations; broadcast television productions; and related digital media properties. The company?s Filmed Entertainment segment operates Universal Pictures, which produces, acquires, markets, and distributes filmed entertainment and stage plays worldwide in various media formats for theatrical, home entertainment, television, and other distribution platforms. Its Theme Parks segment operates Universal Studios Hollywood park and Wet ?n Wild water park, as well as licenses intellectual properties and provides services to third parties that own and operate Universal Studios Japan and Universal Studios Singapore. Comcast Corporation was founded in 1963 and is based in Philadelphia, Pennsylvania.


Advisors’ Opinion:

  • [By WWW.DAILYFINANCE.COM]

    Getty Images The stream is about to turn into a gush. Streaming video-on-demand purveyors like Netflix (NFLX), Hulu and Amazon.com (AMZN) are set to open their wallets a lot wider for content. And where will that cash flow? For the most part, into the bank accounts of the content producers, specifically the Hollywood TV industry. The Fight for Eyeballs As everyone expected with the advance of streaming technology (and the bandwidth to accommodate it), video on demand has become one of the hottest items in entertainment. The evolution has been fast. Five years ago, Amazon’s Prime was essentially just a subscription service that provided free two-day shipping of physical goods for its members. Since 2011, though, it’s been an increasingly aggressive player in the streaming market. Amazon doesn’t break down the figures it spends on streaming video; nevertheless, its “technology and content” expenses line item was $6.6 billion in the first nine months of this year. That was 41 percent higher than in the same period last year, and the amount comprised nearly 10 percent of the company’s total net sales. According to an estimate from Bernstein Research, Amazon is set to spend $1.5 billion to $2 billion this year on streaming syndication and original content, which should balloon to more than $2.5 billion in 2015. It’s in good company. Its two most prominent rivals, Netflix and Hulu — a joint venture of units from Comcast (CMCSA), 21st Century Fox (FOX) and Disney (DIS) — are also prepared to write big checks. According to Variety, an analysis from RBC Capital Markets estimates that the troika will spend a collective $6.8 billion on such content next year. That’s a chunky 31 percent increase from the anticipated 2014 figure of $5.2 billion. That higher spend is going both to the original content that has proliferated on such channels (series like Netflix’s “Orange Is the New Black”), films, and syndication rights for such broadcast TV series as “The Blackli

  • [By Johanna Bennett]

    To blame? Continued bad publicity following the 2013 release of the documentary film “Blackfish” and increased competition in the Florida market from the likes of Disney (DIS) and UniversalStudios, owned by Comcast (CMCSA)

  • [By Jonas Elmerraji]

     

    Comcast (CMCSA) is the biggest cable company in the U.S., with a network that reaches 54 million households. And for most of the last year, investors have been fixated on its plans to get even bigger through the $68 billion acquisition of Time Warner Cable (TWC). If Comcast’s plans make it through the final approvals needed (something that Wall Street expects to see happen by this coming summer), then Comcast’s huge scale as a cable company becomes a lot bigger — and so do its operating advantages.


     

    To combat a stagnant cable business, Comcast has undergone some major transformations in recent years. For instance, it acquired NBCUniversal in a deal finalized last year — the move gives Comcast access to coveted TV and film content, a commodity that’s becoming increasingly important as more consumers leave conventional TV subscriptions in favor of online services.

     

    Meanwhile, Comcast continues to vie for more of its users’ communications spending. Like its peers, Comcast obsessed with converting its existing cable customer Rolodex into “triple play” customers who subscribe to TV, internet, and phone services. Selling existing customers on new products is a huge margin driver for Comcast, as customer acquisition costs are much lower. By taking on Time Warner Cable’s network too, Comcast gets a much bigger Rolodex to work with.


     

    Right now, CMCSA pays out a 25.5-cent quarterly dividend, or a 1.7% yield. If history is any indication, investors should look for a raise in the quarter ahead.

    Must Read: 5 Breakout Stocks Under $10 Set to Soar

     

  • [By Johanna Bennett]

    Time Warner Cable (TWC) and Comcast (CMCSA) each dropped 4% or more after President Barack Obama threw the weight of his administartion behind rules netneutrality.

Hot Media Stocks For 2015: DIRECTV(DTV)

DIRECTV provides digital television entertainment in the United States and Latin America. The company provides direct-to-home (DTH) digital television services, as well as multi-channel video programming distribution services in the United States. It offers various channels of digital-quality video entertainment and CD-quality audio programming directly to subscribers’ homes or businesses, as well as video-on-demand services; and approximately 160 national high-definition television channels and 4 3D channels. The company also provides premium professional and collegiate sports programming, such as the NFL SUNDAY TICKET package, which allows subscribers to view the NFL games. In addition, it offers DTH digital television services in Latin America and the Caribbean, including Puerto Rico. The company provides its local and international programming under the DIRECTV and SKY brand names. As of December 31, 2010, it served approximately 19.2 million subscribers in the United States; and 8.9 million subscribers in Latin America. The company was founded in 1990 and is based in El Segundo, California.


Advisors’ Opinion:

  • [By Garrett Cook]

    DirecTV (NASDAQ: DTV) reported upbeat profit for the third quarter.

    The El Segundo, California-based company reported a quarterly profit of $611 million, or $1.21 per share, versus a year-ago profit of $699 million, or $1.28 per share. Excluding non-recurring items, DirecTV’s adjusted earnings came in at $1.33 per share.

  • [By WWW.DAILYFINANCE.COM]

    Andrew Harrer/Bloomberg via Getty Images WASHINGTON — The U.S. government has sued AT&T, alleging the No. 2 U.S. wireless carrier sold consumers unlimited data plans but would reduce their Internet speeds once they exceeded a certain amount of data. The Federal Trade Commission said Tuesday that this throttling of Internet feeds was deceptive and that in some cases data speeds were slowed by nearly 90 percent. FTC Chairwoman Edith Ramirez said that AT&T (T) wanted to retain longtime customers and so allowed them to buy unlimited data plans, in some cases after new customers were no longer offered unlimited plans. Then they unilaterally changed the terms, she said. “They stopped providing the service that customers understood they had purchased when they entered into their contract,” she said. “Customers would be subject to an early termination fee if they wanted to get out of their existing contract.” AT&T called the allegations “baseless” and said the practice was needed to manage network resources. “We have been completely transparent with customers since the very beginning,” said Wayne Watts, AT&T’s general counsel. “This program has affected only about 3 percent of our customers, and before any customer is affected, they are also notified by text message.” More than 3.5 million customers with legacy unlimited data plans had their Internet speeds slowed more than 25 million times by AT&T’s practice, which began in October 2011, the FTC said. AT&T says on its support website that people with certain plans can experience data slowdowns once they exceed certain limits. Customers with a 3G smartphone will experience slowdowns after using 3 gigabytes of data in a month, while those with 4G LTE smartphones can use 5 gigabytes before potential slowdowns. Those who dislike the throttling can use Wi-Fi or switch to a different plan, AT&T says on its website. AT&T closed up 0.6 percent at $34.33 a share. Federal Communica

  • [By Vera Yuan]

    Dear Fellow Shareholder: The U.S. economy continues to gradually expand, building on the 5+ year recovery from the Great Recession. Employment levels are improving, though progress has been slower than expected. Inflation, for now, remains subdued. As signaled and on cue, the Fed has been weaning the economy (and investors) off of the extraordinary ‘quantitative easing’ stimulus. Investors have generally shrugged off world events that might otherwise cause high anxiety (ISIS and the Middle East, Russia and Ukraine, etc.). As attention now turns to when the Fed will raise short-term interest rates, it seems plausible that volatility may intensify as the stimulus security blanket is removed. In the meantime, companies are taking advantage of the artificially low interest rate environment and sanguine investor sentiment. Merger activity remains robust, fueled by cheap and readily available credit. The IPO market has been very active, headlined by the successful Alibaba offering in September. Corporate treasurers continue to issue loads of debt on attractive terms, locking in generationally low interest rates for long terms. While these conditions will not last forever, they have helped opportunistic managers accelerate equity value growth at many companies.Investment Commentary and Outlook After three years of seemingly non-stop gains, the stock market took a pause in the third quarter. While most large cap indices eked out modest positive returns, the broader investing waters were far less placid. Small cap stocks sold off as the Russell 2000 declined more than 7% during the quarter. Energy stocks, both large and small, fell materially as investors worried about too much oil and gas supply coming online in North America (what a difference a decade makes). High yield bonds wobbled briefly in July, then again in September. Increasingly, investors are not treating all securities the same, and as stock pickers we welcome this development. Our equity funds’ resu

Hot Media Stocks For 2015: Discovery Communications Inc(DISCA)


Discovery Communications, Inc. operates as a non fiction media and entertainment company worldwide. The company provides original and purchased programming across various distribution platforms. Its content covers science, exploration, survival, natural history, sustainability of the environment, technology, docu-series, anthropology, paleontology, history, space, archaeology, health and wellness, engineering, adventure, lifestyles, forensics, civilization, and current events. The company owns and operates nine national television networks in the United States, including Discovery Channel, TLC, Animal Planet, Science Channel, Investigation Discovery, Military Channel, Planet Green, Discovery Fit & Health, and Velocity. Discovery Communications also has interests in Oprah Winfrey Network, a pay-television network and Web site; The Hub that features original programming, game shows, and live-action series and specials; and 3net, a three-dimensional network. In addition, it o ffers network branded Web sites, and mobile and video-on-demand services; and distributes various national and pan-regional television networks. Further, the company develops and sells curriculum-based products and services to public and private K-12 schools, such as access to an online VOD service that includes curriculum-based tools, professional development services, and student assessment and publication of hardcopy curriculum-based content; and postproduction audio services to motion picture studios, independent producers, broadcast networks, cable channels, advertising agencies, and interactive producers. As of December 31, 2011, it operated approximately 150 distribution feeds in 40 languages. The company is headquartered in Silver Spring, Maryland.


Advisors’ Opinion:

  • [By Jake Mann]

    In 2015, I will be paying close attention the media sector…I have highlighted several stocks in 2014 that I thought were winners in the sector going forward with AMC Networks Inc (NASDAQ: AMCX), Discovery Communications Inc. (NASDAQ: DISCA), Starz (NASDAQ: STRZA), and Crown Media Holdings, Inc (NASDAQ: CRWN) the ones I like best.

  • [By Vera Yuan]

    Dear Fellow Shareholder: The U.S. economy continues to gradually expand, building on the 5+ year recovery from the Great Recession. Employment levels are improving, though progress has been slower than expected. Inflation, for now, remains subdued. As signaled and on cue, the Fed has been weaning the economy (and investors) off of the extraordinary ‘quantitative easing’ stimulus. Investors have generally shrugged off world events that might otherwise cause high anxiety (ISIS and the Middle East, Russia and Ukraine, etc.). As attention now turns to when the Fed will raise short-term interest rates, it seems plausible that volatility may intensify as the stimulus security blanket is removed. In the meantime, companies are taking advantage of the artificially low interest rate environment and sanguine investor sentiment. Merger activity remains robust, fueled by cheap and readily available credit. The IPO market has been very active, headlined by the successful Alibaba offering in September. Corporate treasurers continue to issue loads of debt on attractive terms, locking in generationally low interest rates for long terms. While these conditions will not last forever, they have helped opportunistic managers accelerate equity value growth at many companies.Investment Commentary and Outlook After three years of seemingly non-stop gains, the stock market took a pause in the third quarter. While most large cap indices eked out modest positive returns, the broader investing waters were far less placid. Small cap stocks sold off as the Russell 2000 declined more than 7% during the quarter. Energy stocks, both large and small, fell materially as investors worried about too much oil and gas supply coming online in North America (what a difference a decade makes). High yield bonds wobbled briefly in July, then again in September. Increasingly, investors are not treating all securities the same, and as stock pickers we welcome this development. Our equity funds’ resu