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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (74004)	10/19/2023 8:21:47 AM
From: Harshu Vyas	Respond to of 78673

Nailed it! Streamers were targeting revenues, now profit - investors win. I'm also in WBD and it's the only stock I'm really happy to hold forever. EDITED - my thesis is that the smaller streamers will have no choice but to consolidate or already have (PARAA etc. as Spekulatius mentioned). The consolidation usually requires debt which means that streamers don't have a choice but to target profitability. I see WBD, DIS and NFLX being the final three - DIS is already a failure and NFLX don't really have fantastic content. WBD have bided their time and now look in excellent position to pounce. On the other side, cable companies are also extremely leveraged and I don't think they don't have that pricing power. A slow, painful death.

To: Spekulatius who wrote (74004)	10/19/2023 8:38:47 AM
From: Sean Collett	Respond to of 78673

My counter here would be my wife and I are now cancelling HULU after their price newest increase - platform isn't worth $17/month. We are also reviewing a few of the others that we pay for as they're just not worth the price. My real point here though was to paint that streamers have risks and those risks should be considered when some here were writing broadcasters off for dead - especially given the Disney/Charter deal which favored the broadcaster side. You have major sites in the entertainment segment posting articles like: And with new FTC law possibly on the table called "click to cancel" this would make exiting these streaming services even easier if passed. And price increases are bullish at the start of the cycle, not at this stage IMO. While everyone may be raising prices now that's not something that can just go on forever. If we look at the consumer their usage of credit has continued to increase which isn't a great sign. I think the fact that delinquencies on loans are up while unemployment is this low is also a red flag: At some point we will see the consumer forced to pick between what is critical and what is not. I would agree that NFLX or WBD are probably safe long-term holds, but then again it was never my intention to write them off either. -Sean