Weekly Updates: PARA, AAPL, AMZN (Issue #4)
Recent Update:
Recently a fund manager in Omaha invested in Paramount (PARA), this is of course, Warren Buffett. This makes a lot of sense on the surface and it is only reinforced as you look more deeply. On the surface, this is a very cheap company with a Price/Earnings of 5.44x and Price/Book of 0.74x. On a deeper level, PARA has expanded into streaming as a niche player most notably in sports, news, and kids. Kids and sports are both very sticky niches where PARA has a very defensible moat. For the kids, they have the rights to almost every popular non-Disney kids franchise (Peppa Pig, SpongeBob, Paw Patrol, and more). For sports, they have focused on exclusive rights to women’s soccer and some leagues of European soccer. PARA also has rights to PGA, NFL, and more.
Check out the thread below for a few more thoughts and a different format 👇
Underrated:
Apple is a force to be reckoned with in the streaming market because they have adjusted their strategy to be more on the attack. Apple still seems to be a player that wants to act as a bundler of other services, but now they also seem to be trying to be a real competitor with their own service. AppleTV+’s content portfolio is still small, but it is very high quality and growing. Further, AppleTV+’s content is almost exclusively TV shows because that increases their stickiness as users will come back again and again to watch new episodes.
Overrated:
Amazon as a streaming service is currently a bit overrated because they are doing the opposite of what AppleTV+ is doing. Amazon is also playing to be a bundler of other streamers but may be threatened by Apple who is do the same. And Apple has a growing high-quality content library (this could be a deciding factor for customers deciding between bundlers in the future). Also because of Apple’s size Amazon can’t muscle them out of the space like they can do with the smaller media companies.
Content News:
Denmark is forcing streaming companies to pay 6% of the revenue they make in the country to local TV production. Reuters
The Boss Baby: Back In The Crib was recently released on Netflix
Stranger Things Season 4 will be released on Netflix this summer
Ms. Marvel will be released on Disney+ this summer
Until Next Time,
Soren