The media landscape has been changing for years, but in the past few weeks, changes have gone into overdrive. Apple
The iPad, iPhone, Google TV, Internet reruns, satellite, etc., give users options for where they're going to get content, but the content itself hasn't changed very much. We're still watching television shows and movies, but the location and price options may have changed.
Content is king
If content can move anywhere at the flick of a switch, I want to own the best content with the most bargaining power. Comcast
|
Content |
Market Cap |
P/E Ratio |
Notable Assets |
|---|---|---|---|
|
Disney |
$65.7 billion |
16.4 |
ABC, ESPN, A&E Networks |
|
CBS |
$10.4 billion |
26.6 |
CBS, The CW |
|
Viacom |
$22.5 billion |
12.4 |
MTV, VH1, Comedy Central |
|
Time Warner |
$35.0 billion |
14.4 |
CNN, TNT, HBO, Warner Bros. |
|
Comcast |
$50.8 billion |
14.0 |
E!, Versus, NBC (pending) |
Source: Motley Fool and Yahoo! Finance.
The downside is CBS, which I think not only has some of the weakest content but also has the highest P/E of the five companies. CBS' revenue has declined in each of the past three years and earnings have fallen sharply from 2007 levels. Time Warner, on the other hand, offers 25% adjusted EPS growth over the past three years when you take out the Time Warner Cable spinoff.
Competition among devices and distribution methods may take some time to develop as customers decide how they like to watch content. But whether you use an iPad, iPhone, Google TV, or a transistor radio, I don't think content will change much because big networks and studios will continue to dominate our media landscape. May the best content ultimately win.
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