Categories
Business

Ideas from merchants on enjoying the streaming shares

Who is the front runner in streaming?

While Nielsen’s “Tops of 2020” report highlighted Netflix’s lead in the original and acquired television series, one relative newcomer is causing a stir on the streaming movie front: Disney.

Nielsen said that seven of the top ten most streamed films of the past year were seen on Disney +, which launched in November 2019.

Overall viewership has changed slightly, according to the research firm, with Netflix consuming just 28% of streaming time – up from 31% in 2019 – and Disney accounting for + 6%.

“There is room for both of them in the industry because their” prices are not extreme, “said Quint Tatro, founder and chief investment officer of Joule Financial.

“I have three children. We are not canceling either,” he told CNBC’s “Trading Nation” on Wednesday. “It’s a rating question from an investment standpoint. And I just can’t touch Netflix here.”

Netflix’s nearly 3% rise on Wednesday brought the stock to nearly 86 times the price / earnings ratio, and with debt 1.5 times its equity “it’s just not an attractive game,” Tatro said.

“If we’ve had a significant drop in that name where all of a sudden everyone was like, ‘Oh, they’re dead’ – let’s say there was a new player in the game or something – maybe you can pick stocks, but it’s just no touch for me, “said Tatro.

While Disney didn’t initially get the recognition it deserved for Disney +, the stock made an “incredible comeback” from its March lows, Tatro added.

“We own the stock. We have been rewarded for holding the stock. We bought near the March lows. I’m very happy with all of this,” he said.

But since Disney is trading with 40 times the profit from Wednesday, “this has to happen,” said Tatro. “So, I think there is room for both. … In the longer term, I think Disney is the play because they have more than just the streaming, but you have to be patient. The next fix is ​​on the shopping list. Then you get it Shares off. “

TradingAnalysis.com founder Todd Gordon agreed that it is possible to have the best of both worlds. Investing in streaming doesn’t have to be an “either-or” strategy.

Still, Disney stocks have shown remarkable momentum over the past year, Gordon said, referring to a chart.

“Could you imagine placing a bet on the lows of Covid knowing that the country was going to close, that Disney would … surpass Netflix in percentage profits?” Said Gordon.

Disney stock is up over 104% since its low in March, while Netflix is ​​up nearly 70%.

“You could counter and say, ‘Well, Disney kept falling,’ but if you look at the breakout of both stocks, they are both about 20% off their highs,” said Gordon. “So, I don’t think it’s either or. They serve two different ones [demographics]. “

Disclosure: Joule Financial owns shares in Disney.

Disclaimer of liability

Categories
Business

Bollywood, Reeling From the Pandemic, Shifts to Streaming

“Coolie No. 1 ”has all the hallmarks of a great Bollywood movie: colorful costumes, larger-than-life sets, music and a melodramatic story about a man who pretends to have a twin to woo the woman of his dreams.

After filming in February, the film was set for a theatrical release in May. But when “Coolie No. 1 ”finally hits the screens on Christmas Day, it will not be seen in one of India’s 3,000 theaters. Instead, it will be introduced on Amazon’s streaming service.

“I make films for the theater, but there was no way we could do that this time,” said David Dhawan, the director. After the coronavirus pandemic hit theaters and closed them, the wait for a theatrical debut became unbearable, he said. A deal to send the film to Amazon after its release shifted to a direct streaming plan.

“It’s definitely a compromise,” said Dhawan, whose film is a remake of a 1995 blockbuster of the same name that he also directed. “But at least my film will be released.”

“Coolie No. 1” is just one of the Bollywood films – short for India’s nearly $ 2.5 billion Hindi film industry – that turned to streaming in a pandemic year. A total of 28 big-star Bollywood films that hit theaters were instead streamed direct, compared to none in the past year, according to research firm Forrester.

Among them were “Gulabo Sitabo,” a dark comedy starring veteran actor Amitabh Bachchan, and “Shakuntala Devi,” a biography of the Indian mathematician, both of which began streaming on Amazon in July. Another, “Laxmmi,” a comedy drama starring Akshay Kumar, was released on Disney’s own streaming service Hotstar in November.

The shift is reminiscent of Hollywood, where the pandemic has resulted in studios pushing back theatrical releases for many films and, in some cases, switching to streaming as part of an initial pass. In September, Disney debuted “Mulan” on Disney +. Last month Warner Bros. announced that it would release “Wonder Woman 1984” on HBO Max and in theaters on Christmas Day at the same time. The studio later announced that it would broadcast all 17 of its 2021 films to streaming and theater at the same time.

The number of Bollywood films geared towards streaming is only a small fraction of what the industry is doing. Last year, Bollywood produced more than 1,800 films, or an average of 35 per week, and domestic theatrical releases reached more than $ 1.5 billion in sales, according to a report by Ernst & Young.

However, according to Bollywood producers, filmmakers and experts, the shift in the pandemic towards streaming is unmistakable.

Netflix, Amazon and Hotstar have all invested in India, one of the fastest growing internet markets in the world. The companies, which together have tens of millions of paying Indian subscribers, have poured billions of rupees into producing edgy, India-specific original content in a variety of regional languages. In 2020, they spent nearly $ 520 million creating content for the Indian audience, nearly $ 100 million more than in 2019, according to Forrester.

Netflix said it had invested around $ 400 million in the licensing and production of more than 50 films and shows in India over the past two years. Of these, 34 were original Hindi films.

“The current environment gave us some opportunities to add to our movie roster, including some films our members would otherwise have enjoyed on service after a theatrical release,” Netflix said in a statement. It added that it was “already a huge fan of original films for the service and we are investing in it.”

Disney + also launched in India during the April lockdown and merged with Hotstar, one of India’s largest platforms. (Disney bought Hotstar in March 2019 as part of its $ 71 billion deal to acquire 21st Century Fox, owned by Star India, then Hotstar’s parent company.) The combination gives paid subscribers in India access to Disney’s library global content.

Bypassing theaters is a big step forward to Bollywood. India’s film industry has relied almost entirely on theatrical releases for a long time for revenue. When the pandemic brought cinemas to a standstill, revenues fell by up to 75 percent, according to estimates by analysts at KPMG.

Even after the government reopened cinemas in October, PVR Cinemas, the country’s largest multiplex chain, reported a net loss of 184 crore rupees, or about $ 25 million, for the quarter ended September from a lack of new films.

“Our earnings are miserable because we are still an incomplete offering,” said Ajay Bijli, chairman and general manager of PVR Ltd., which has laid off nearly 30 percent of its employees. “It’s like a restaurant with no food.”

The shutdowns have also resulted in some screen cinemas being permanently closed, which may mean less access to cinema experiences for much of the Indian working class and rural population.

All of this makes it easier for streaming services to land new movies even after some theaters are reopened. There is “the ability to have current theatrical releases available to a large number of customers within four to eight weeks of their release, depending on the language,” said Vijay Subramaniam, Director and Head of Content at Amazon Prime Video India.

Streaming services’ investments in Bollywood content have also resulted in a surge in creativity. Instead of the usual romantic or action hero films with all-star cast members, analysts now say more shows and films are focused on women, war and other topics. More than half of the Netflix films released in India this year were by a producer or director, and over half of Indian films and series have women as the main characters.

“That kind of lowest common denominator or single content strategy is slowly fading now,” said Vikram Malhotra, producer of Shakuntala Devi. “People are demanding more differentiated, more intellectually relevant content. These stories must mean something now. “

Mr. Dhawan, the director of “Coolie No. 1,” said there was still an appetite for big, colorful, melodramatic love stories while streaming.

“I think I’ll make a different type of film every time,” he said. “But people won’t let me change. They return to this great atmosphere, they laugh, they enjoy the sounds, they dance. “

And Sara Ali Khan, who plays the romantic interest, said she was just as thrilled that “Coolie No. 1 ”debuted in streaming as it did in cinemas.

“The excitement and nervousness prior to the film’s release is still there,” she said.

Categories
Business

Disney to Reveal Plans to Turbocharge Streaming Choices

LOS ANGELES – A major expansion of the Star Wars universe. Tom Hanks as Geppetto in a live action “Pinocchio” and Yara Shahidi as Tinker Bell in a live action “Peter Pan & Wendy”. Recordings of new Marvel projects. A star-studded prequel to “The Lion King”.

On Thursday, the Walt Disney Company will discuss a lot of upcoming Death Star-sized content in a four-hour investor presentation focused on streaming – all that and more, said three people with knowledge of the matter, who spoke on condition of anonymity Discussion of private planning.

Some big budget Disney films will continue to show exclusively in theaters. (The “Lion King” project directed by Barry Jenkins, which focuses on Mufasa’s backstory, is a great choice.) Others will debut online. (This is where Pinocchio comes in.) All of them will ultimately serve one goal, namely to empower Disney +, the company’s flagship streaming service.

At a time when streaming is becoming increasingly competitive – and some of Disney’s traditional companies are struggling – Disney hopes to use the virtual event to dazzle Wall Street: here is a 97-year-old company making the leap in creates the hyperspace from direct customers to consumers.

Last month, Bob Chapek, Disney’s CEO, announced that Disney + had reached 74 million subscribers worldwide after just 11 months of operation. (It took Netflix seven years to reach that threshold and now has 195 million customers worldwide.) Since then, Disney + has been launched in Latin America and grown rapidly in India, analysts say. Some estimate that Disney may reveal that the service is within reach of 100 million subscribers.

Disney is also expected to release growth updates to its other streaming platforms, including ESPN +, Hulu, and a new general entertainment offering, Star, which will be rolled out overseas in the coming months.

“The question everyone has now is where to go from here?” Michael Nathanson, founder of media research firm MoffettNathanson, said in a telephone interview. “We expect much more spending on content to make Disney + an always available service that increases pricing power.”

Subscriptions to Disney + are $ 7 per month. The cheapest Netflix plan is $ 9 a month, and HBO Max, a young WarnerMedia service, is $ 15.

Disney declined to comment on this article.

Investors have kissed their lips in anticipation of what Disney will reveal, including projections of subscriber growth. Disney stock is up 32 percent since Investor Day announced in August, compared with Standard & Poor’s 500-stock index, up 11 percent.

Disney was trading at around $ 155 on Wednesday, near an all-time high, although some of its theme park resorts (which are huge money generators) remain closed because of the pandemic. The company laid off 30,000 employees.

Hollywood is keen on the investor presentation as Disney executives have announced that they will be discussing an evolving approach to film distribution. The coronavirus has forced Disney and other studios to postpone the release of more than a dozen major films and redirect others to streaming services. In September, Disney debuted “Mulan” on Disney + as part of a “Premium Access” experiment and billed subscribers $ 30 for perpetual access. Pixar’s latest film, Soul, will be released on Disney + on Christmas Day at no additional cost.

Citing the pandemic, WarnerMedia switched 17 upcoming Warner Bros. films to a hybrid release model last week – arriving on HBO Max and in theaters simultaneously – although some of the films (“Dune”, “The Matrix 4”) not scheduled to come out until the fourth quarter, long after vaccines are expected to be used. The surprise move resulted in a quick and severe setback for the WarnerMedia talent, who felt betrayed by the sudden change. You also get significantly lower paydays.

John Stankey, the executive director of AT&T, which owns Warner Media, described the excitement at a conference Tuesday as “a lot of noise” and predicted that WarnerMedia’s strategy would prove to be “win-win-win”.

Economy & Economy

Updated

Apr. 11, 2020, 6:16 pm ET

In contrast, Disney’s CEO Chapek and Robert A. Iger will not be taking a single approach to movie releases in 2021, according to people who know the company’s plan.

Some titles on Disney’s cinema board will be moved to Disney + at no additional cost. Expect “Peter Pan & Wendy” like “Soul” and “Pinocchio” to debut this way.

Other films will take the “Mulan” route and arrive on Disney + as premium offers. “We have something here in terms of leading access strategy,” Chapek told analysts on a recent conference call. “With our portfolio of services there will be a strategic role.”

And some of Disney’s greatest films will continue to receive exclusive theatrical releases before being added to the company’s streaming services. For example, contrary to popular speculation, Black Widow, a highly anticipated Marvel spectacle, will stay on Disney’s theatrical calendar for May 7th, people with knowledge of the presentation said.

Movies are helpful in attracting subscribers, but TV shows stream customers who pay month after month. To this end, Disney has an abundance of series for its services along the way. These include “Turner and Hooch,” an adaptation of the 1989 film about a detective and his oversized mutt; “Willow”, an adaptation of the large-screen fantasy from 1988; and eight Marvel shows based on characters like Loki and She-Hulk.

Streaming is not yet profitable for Disney – far from it. Direct sales losses were $ 2.8 billion in fiscal 2020. Streaming-related losses are expected to peak in 2022 as rollout costs decrease and content costs normalize. Analysts expect Disney + to be profitable by 2024.

Disney has stated that some of the money for its new content flash will come from programming budgets for its traditional television networks. The company owns the Disney Channel, National Geographic, FX, Freeform and ABC, among others.

“We will be shifting the scale from linear networks to our direct customer business,” said Chapek on the recent conference call.

Analysts pushed for additional details. “Just wait until December 10th,” said Christine McCarthy, Disney’s chief financial officer, on the call. “Hopefully then we can answer all of your questions.”

Categories
Entertainment

‘Star Wars,’ ‘Pinocchio’ and Extra as Disney Leans Sharply Into Streaming

But there are huge challenges ahead of us. Streaming services are immensely expensive to build, and Disney now has four: Disney +, Hulu (39 million subscribers), ESPN + (11.5 million), and Star +, an overseas version of Hulu that will be available in the coming months is introduced in Latin America. Disney’s direct customer business losses were $ 2.8 billion in fiscal 2020. The company has ditched billions in royalties for amassing library content on Disney + instead of selling it to outside companies like Netflix.

Disney is also facing an increasingly competitive streaming environment. HBO Max, CBS All Access (soon to be renamed Paramount +), Peacock, Apple TV +, and the recently announced Discovery + are determined to keep moving forward. Netflix and Amazon continue to invest billions of dollars annually in the original programming.

A significant portion of the presentation was dedicated to Star, which will feature programs from Disney real estate such as ABC, FX, Freeform, Searchlight and 20th Century Studios, which Rupert Murdoch sold to Disney last year. In Latin America, Star + will be launched as a standalone service in June and will also include ESPN coverage of sporting events. In Europe, Canada, Australia and several other markets, Star + is being integrated directly into Disney +, adding a variety of more sophisticated programming to the service (“Deadpool 2”, the animated series “Family Guy”) that Disney potentially has an audience reach far beyond families.

The addition of a Star channel in Disney + also justifies a price hike of around 28 percent to around $ 11 per month.

New shows are also being routed to Disney’s Hulu, including the series “Nine Perfect Strangers,” a David E. Kelley puzzle starring Regina Hall, Nicole Kidman and Melissa McCarthy – which Dana Walden, chairwoman of entertainment at Walt Disney Television, called “juicy content that can’t be turned off”. Disney-owned FX, which broadcasts its programs on several Disney streaming services, is working with one on a TV spin-off of the film franchise “Alien” and a retelling of “Shogun”, the James Clavell saga half a dozen other highs profile projects.

During the presentation, Disney discussed its evolving approach to film distribution. The coronavirus pandemic has forced Disney and other studios to cut back on the release of big budget movies – more than half of US cinemas are closed – and redirect others to streaming services. In September, Disney debuted “Mulan” on Disney + as part of a “Premium Access” experiment and billed subscribers $ 30 for perpetual access. Pixar’s latest film, Soul, will be released on Disney + on Christmas Day at no additional cost.