In 2016, Disney generated 43% of revenues from TV networks, 30% from theme parks, 17% from film studios and 10% from consumer products. TV networks generated 50% of Disney’s operating profits.
Whilst Disney’s film studios business is likely to benefit from the Internet TV theme, its TV networks business will be a big loser, seeing both Pay-TV revenues and TV advertising revenues fall faster than analysts expect.
Disney has a strategy to deal with the threat of Internet TV technology. But its in-house video streaming service, to be launched in 2019, is too little too late.
Inside this report, we look at the key themes driving Disney’s TV networks business, drilling down into the value chain of TV and identifying top technologies driving music, film and TV.
- This report is part of the ecosystem of thematic investment research reports, supported by the “thematic engine”.
- About the Thematic Research Ecosystem
- The author has developed a unique thematic methodology for valuing technology, media and telecom companies based on their relative strength in the big investment themes that are impacting their industry. Whilst most investment research is underpinned by backwards looking company valuation models, the author’s thematic methodology identifies which companies are best placed to succeed in a future filled with multiple disruptive threats. To do this, the author tracks the performance of the top 600 technology, media and telecom stocks against the 50 most important themes driving their earnings, generating 30,000 thematic scores. The algorithms in the author’s “thematic engine” help to clearly identify the winners and losers within the TMT sector. The 600 TMT stocks are categorised into 18 sectors. Each sector scorecard has a thematic screen, a risk screen and a valuation screen. The thematic research ecosystem has a three-tiered reporting structure: single theme, multi-theme and sector scorecard. This report is a Single Theme report, offering in-depth research into a specific theme. It identifies winners and losers based on technology leadership, market position and other factors.
- The thematic investment research product, supported by the thematic engine, is aimed at senior (C-Suite) executives in the corporate world as well as institutional investors.
- Corporations: Helps CEOs in all industries understand the disruptive threats to their competitive landscape
- Investors: Helps fund managers focus their time on the most interesting investment opportunities in global TMT.
- The unique differentiator, compared to all rival thematic research houses, is that the thematic engine has a proven track record of predicting winners and losers.
TV VALUE CHAIN
Distribution and transmission systems
MUSIC, FILM AND TV SECTOR SCORECARD
Who’s who in music, film and TV sector
APPENDIX: “THEMATIC” RESEARCH METHODOLOGY
- 21st Century Fox
- AMC Networks
- Discovery Communications
- Entertainment One
- Fuji Media
- Grupo Televisa
- Lions Gate Entertainment
- Live Nation
- M6-Metropole TV
- Modern Times Group
- Network 18 Media
- Nippon TV
- Scripps Networks Interactive
- Sirius XM Radio
- Sun TV Network
- Television Broadcasts
- Time Warner
- TV Francaise (T.F.1)
- Walt Disney
- Zee Entertainment