Research@CATS - M&E

Media & Entertainment

Predicting the future of in-home video entertainment through a historical and economic analysis of turbulence in M&E.

The business of in-home video entertainment is undergoing massive transformation in production, distribution and industry structure. Tectonic changes have occurred in the last two decades, including multiple big media mergers, emergence and dominance of Netflix first as a content distributor and then as a content creator, and, conversely, launch of direct-to-consumer streaming services by major content creator firms. What core elements explain this turbulence, and what signals do they provide for the future of media and entertainment?

Comcast Is Paying Up for Sky: Now What?

By most Wall Street measures, Comcast is overpaying for its acquisition of Sky, the British satellite TV, broadband and mobile services provider. When the U.S. cable giant announced last month that it had won the auction for a controlling stake in Sky by bidding $40 billion, shares of Comcast fell by as much as 8% intraday amid a slew of analyst downgrades. It now might have to pony up more money to buy Fox’s stake in Sky to get full ownership. “It’s an extraordinary price,” noted Mike Fries, CEO of rival telecom and satellite TV services provider Liberty Global, on Bloomberg TV.

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