Internet TV : Disney, underweight TV broadcasting sector vulnerable – Global Thematic Research

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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

Scope

This report is part of our ecosystem of thematic investment research reports, supported by our “thematic engine”.

About our Thematic Research Ecosystem

GlobalData 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, GlobalData’s thematic methodology identifies which companies are best placed to succeed in a future filled with multiple disruptive threats. To do this, GlobalData 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 GlobalData’s “thematic engine” help to clearly identify the winners and losers within the TMT sector. Our 600 TMT stocks are categorised into 18 sectors. Each sector scorecard has a thematic screen, a risk screen and a valuation screen. Our 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.

Reasons to Buy

Our thematic investment research product, supported by our 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.

Our unique differentiator, compared to all our rival thematic research houses, is that our thematic engine has a proven track record of predicting winners and losers.

21st Century Fox
Amazon
AMC Networks
Atresmedia
CBS
Discovery Communications
Entertainment One
Eros
Fuji Media
Grupo Televisa
ITV
Lions Gate Entertainment
Live Nation
M6-Metropole TV
Mediaset
Modern Times Group
Naspers
Netflix
Network 18 Media
NeuLion
Nexstar
Nippon TV
Pandora
ProSiebenSat.1
RTL
Scripps Networks Interactive
Sirius XM Radio
Sony
Sun TV Network
Technicolor
Gannett
Television Broadcasts
Time Warner
TV Francaise (T.F.1)
Viacom
Vivendi
Walt Disney
Zee Entertainment

Table of Contents

PLAYERS

TRENDS

Industry growth drivers

Hardware trends

Software trends

INDUSTRY ANALYSIS

The Internet of Things, the cloud and AI are driving growth in the data center industry

The mobile revolution is spreading all the way up to the data center

Optimising latency is the biggest challenge facing hyperscale data centers

The fireworks are largely at the software level

Software defined networking could turn the networking industry upside down

Mergers and acquisitions

Winners and Losers

Timeline

VALUE CHAIN

Semiconductors

Servers and storage

Networking equipment

Software

Data center operators

COMPANIES SECTION

Public Companies

Private companies

Networking equipment sector scorecard

Who’s who in the servers, storage and networking equipment sector

Thematic screen

Valuation screen

Risk Screen

Internet infrastructure software sector scorecard

Who’s who in the internet infrastructure software sector

Thematic screen

Valuation screen

Risk Screen

Semiconductor sector scorecard

Who’s who in the semiconductor sector

Thematic screen

Valuation screen

Risk Screen

TECHNOLOGY BRIEFING

A brief history of networking

The OSI Model

GLOSSARY

APPENDIX: OUR “THEMATIC” RESEARCH METHODOLOGY

Frequently asked questions

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