The upheaval in the global TV and video on demand business is marching on with yet another round of mediaco downgrades by a top-tier analyst resulting in further stock price retreat. Last week, Sanford Bernstein’s renowned analyst, Todd Juenger called for a new “valuation framework” for the TV divisions of entertainment powers declaring “the U.S. television industry is entering a period of prolonged structural decline.”
Investors responded swiftly and brutally with Disney, Fox, Time Warner, CBS and others all tagged for billions of dollars in market cap losses. Netflix, which actually gained while Disney and friends were pounded earlier this month, backtracked more than eight percent.
As we recently opined, this downturn for TV and film companies with global reach should result in greater opportunities for international IPTV and operators willing to invest in premier programming and world-class technologies.  The strongest and shrewdest content providers like the BBC, Discovery Networks and Disney are introducing new international channels, licensing premier programming for “pop-up” channels and otherwise aggressively and creatively pursuing revenue and deeper brand engagement. TV providers which bring opportunities for medicos to generate lasting income in untapped or under-developed locales will largely be met with open arms, especially as restrictive legacy agreements expire to allow more bundling and pricing flexibility.
Service providers combining compelling IPTV and video on demand with wireless, broadband and other services will be best-positioned to deliver incredible value to subscribers and meet TV networks’ fast-growing appetite/market pressure for substantial new income streams. Contact us today to learn more about how we can help you launch and succeed with world-class television and VOD through our one-vendor, end-to-end solution including content acquisitions and strategy.