The following video is from this week's installment of The Motley Fool's�Weekly Tech Review, in which Alison Southwick sits down with analysts Eric Bleeker and Lyons George to look at the biggest stories driving the tech sector this week.
The future of television was once again in focus this week. First off, there was�a report from former�Wall Street Journal�reporter Jessica Lessin that�Apple� (NASDAQ: AAPL ) is actively pitching a television service that would allow viewers to skip ads but would offer compensation back to television networks for the skipped ads.�
Not to be outdone,�reports also surfaced that�Google� (NASDAQ: GOOG ) has been actively pitching an online TV service to media companies. Both of these reports come hot on the heels of�Intel's (NASDAQ: INTC ) own negotiations to offer an Internet-based television service through an internally designed set-top box.�
As Eric and Lyons discuss in the following video, all of these services show one thing in common: no cost savings for consumers. They're all focused around more "premium ideas" for the future of television. Intel has reportedly been offering as much as 75% more than the rates channels currently receive from cable. Likewise, Google's deal isn't focused on cost savings, and Apple's has built-in costs for commercial skipping. Instead, the "selling point" for all these services is on a better experience for the television viewer, whether through ideas like ad-skipping or more intuitive user interfaces. No one has ever accused today's cable programming menus of being works of art, which leaves room for technology companies like Apple and Google to improve the television experience.�
Best Chemical Stocks To Watch For 2015: Liberty Global Inc.(LBTYA)
Liberty Global, Inc. provides video, broadband Internet, and telephony services primarily in Europe and Chile. The company offers broadband services over cable distribution systems, including video, broadband Internet, and telephony; and video services through direct-to-home satellite, or through multichannel multipoint distribution systems. Its analog video services comprise basic and expanded basic programming; and digital cable services include basic and premium programming, digital video recorders, and high definition programming, as well as pay-per-view programming, such as video-on-demand and near video-on-demand. In addition, the company offers voice-over-Internet-protocol and circuit-switched telephony services, as well as mobile telephony services using third-party networks. Further, it owns programming networks that provide video programming channels to multi-channel distribution systems owned by the company and the third parties. As of December 31, 2011, the com pany owned and operated networks that passed 33,262,100 homes; and served 18,405,500 video subscribers, 8,159,300 broadband Internet subscribers, and 6,225,300 telephony subscribers. Liberty Global, Inc. was founded in 2004 and is based in Englewood, Colorado.
Advisors' Opinion:- [By Tim Brugger]
Upon Liberty Global's (NASDAQ: LBTYA ) successfully closing its acquisition of Virgin Media (NASDAQ: VMED ) , Tom Mockridge will assume CEO responsibilities of the U.K. communications firm, Liberty Global announced today.
- [By Leo Fasciocco]
The company, Liberty Global PLC (LBTYA), owns interests in broadband distribution and content companies in Europe, Asia, and Latin America, although the company is based in California.
- [By Alex Webb]
Kabel Deutschland is a key part of Vodafone�� expansion strategy as the carrier looks for ways to boost revenue and lock in customers with Internet and television offers in addition to wireless service. Kabel Deutschland is the biggest cable company in Germany, Vodafone�� largest market, and had drawn a rival bid from John Malone�� Liberty Global Plc. (LBTYA)
10 Best Media Stocks To Invest In 2014: Charter Communications Inc.(CHTR)
Charter Communications, Inc., through its subsidiaries, provides entertainment, information, and communications solutions to residential and commercial customers in the United States. The company offers cable video programming services, such as basic and digital video, premium channels, OnDemand, pay-per-view, high definition television, digital video recorder, and online video services; Internet services; Charter.net, which provides multiple e-mail addresses, as well as various entertainment, games, news, and sports content; and telephone services. It also provides broadband communications solutions, such as Internet access, data networking, fiber connectivity to cellular towers and office buildings, video entertainment services, and business telephone services under the Charter Business brand name to business and carrier organizations. As of December 31, 2011, the company served approximately 4.1 million video customers; approximately 3.5 million Internet customers; appr oximately 1.7 million telephone customers; and approximately 476,200 commercial primary service units. Charter Communications, Inc. was founded in 1999 and is based in St. Louis, Missouri.
Advisors' Opinion:- [By Tom Rojas and Maria Armental var popups = dojo.query(".socialByline .popC"); ]
Charter Communications Inc.(CHTR) said its residential customer base grew by 5% as growth in its Internet and voice services helped offset a decline in video subscribers. Shares were inactive premarket.
- [By Jayson Derrick]
Comcast (NASDAQ: CMCSA) and Charter Communications (NASDAQ: CHTR) are reported to be considering a joint bid for Time Warner Cable�(NYSE: TWC). Comcast gained 4.36 percent, closing at $49.52. Charter Communications gained 6.06 percent, closing at $134.66. Time Warner Cable was the biggest winner of the group, gaining 9.92 percent, closing at $132.85.
- [By Harold L. Vogel]
For cable networks and distributors, first admire the long-term pricing power for cable services (shown in the chart below). Price increases have far exceeded the rate of gain of the Consumer Price Index (CPI) for decades and thereby supported the stock prices and earnings growth of the entire industry (even though some companies such as Charter (CHTR) stumbled into bankruptcy even with this pricing wind at their backs).
10 Best Media Stocks To Invest In 2014: Time Warner Inc.(TWX)
Time Warner Inc. operates as a media and entertainment company in the United States and internationally. It operates in three segments: Networks, Filmed Entertainment, and Publishing. The Networks segment provides domestic and international networks, premium pay and basic tier television programming services, and digital media properties, which primarily consist of brand-aligned Websites. Its premium pay television services consist of the multi-channel HBO and Cinemax premium pay television services. This segment provides programming to cable system operators, satellite service distributors, telephone companies, and other distributors; sells advertising; and licenses original programming to domestic and international television networks. The Filmed Entertainment segment produces and distributes feature films, television and other programming, and videogames; distributes home video products; and licenses rights to its feature films, television programming, and characters. T he Publishing segment publishes magazines and books; and operates various Websites, as well as engages in marketing services and direct-marketing businesses. This segment publishes magazines on style and entertainment, lifestyle, news, and sports. The company?s brands include TNT, TBS, CNN, HBO, Cinemax, Warner Bros., New Line Cinema, People, Sports Illustrated, and Time. Time Warner Inc. was founded in 1985 and is headquartered in New York, New York.
Advisors' Opinion:- [By Anders Bylund]
For another example of this, check out Time Warner's (NYSE: TWX ) Hangover franchise. The first installment was a surprise hit, but the actors have blossomed into bankable stars by now. A sequel without Ed Helms or Zach Galifianakis would lose its marquee luster very quickly. Keep the production and marketing costs equal, reduce the star bait fees by half, and drop the ticket take to $200 million. You'd end up with a $100 million loss. The Hangover series has allegedly run its course -- if not for running out of raunchy jokes, it might be because the studio can't afford to pay the stars what they'd demand for a fourth installment.
- [By Tim Beyers]
Man of Steel broke the June record for a box office debut and has raked in more than $400 million in ticket sales as of this writing. But is the payoff worth it? Fool contributor Tim Beyers says DC Entertainment parent Time Warner (NYSE: TWX ) is taking a big risk by making Superman unrecognizable at times during the film.
A darker tale, spun by director Zack Snyder with help from screenwriter David S. Goyer and executive producer Christopher Nolan, Man of Steel saw a 65% drop in grosses in its second weekend, according to data compiled by Box Office Mojo. - [By Victor Reklaitis and Barbara Kollmeyer]
Time Warner (TWX) �said its third-quarter profit jumped to $1.26 a share from 84 cents a share in the year-ago period. The company was seen posting third-quarter earnings of 89 cents a share. The stock rose 2% in premarket trading.
10 Best Media Stocks To Invest In 2014: Comcast Corporation(CMCSA)
Comcast Corporation, together with its subsidiaries, provides entertainment, information, and communications products and services in the United States and internationally. Its Cable Communications segment provides video, high-speed Internet, and phone services to residential and business customers. As of June 30, 2011, its cable systems served approximately 22.5 million video customers, 17.5 million high-speed Internet customers, and 9.1 million phone customers. The company?s Cable Networks segment operates cable entertainment networks, such as USA Network, Syfy, E!, Bravo, Oxygen, Style, G4, Chiller, Sleuth, and Universal HD; news and information networks, including CNBC, MSNBC, and CNBC World; cable sports networks comprising Golf Channel and VERSUS; regional sports and news networks; international entertainment, and news and information networks, such as CNBC Europe, CNBC Asia, and Universal Networks International portfolio of networks; cable television production oper ations; and digital media properties consisting primarily of brand-aligned Websites and other Websites, such as DailyCandy, Fandango, and iVillage. Its Broadcast Television segment operates the U.S. broadcast networks, NBC and Telemundo; 10 NBC and 15 Telemundo owned local television stations; broadcast television productions; and related digital media properties. The company?s Filmed Entertainment segment operates Universal Pictures, which produces, acquires, markets, and distributes filmed entertainment and stage plays worldwide in various media formats for theatrical, home entertainment, television, and other distribution platforms. Its Theme Parks segment operates Universal Studios Hollywood park and Wet ?n Wild water park, as well as licenses intellectual properties and provides services to third parties that own and operate Universal Studios Japan and Universal Studios Singapore. Comcast Corporation was founded in 1963 and is based in Philadelphia, Pennsylvania.
Advisors' Opinion:- [By David Dittman]
And so will be the proposed $45.2 billion engagement of Comcast Corp (NSDQ: CMCSA) and Time Warner Cable Inc (NYSE: TWC) before they can be joined as one.
10 Best Media Stocks To Invest In 2014: Time Warner Cable Inc(TWC)
Time Warner Cable Inc., together with its subsidiaries, operates as a cable operator in the United States. It offers video, high-speed data, and voice services over its broadband cable systems to residential and commercial customers. The company provides a range of video services, including on-demand, high-definition (HD), and digital video recorder (DVR) services; residential high-speed data services with connection to the Internet; wireless mobile broadband Internet services; and digital phone services to residential customers. It offers video programming tiers and music services; high-speed data, networking, and transport services; and commercial digital phone service to small and medium-sized businesses under the Time Warner Cable Business Class brand. Further, Time Warner Cable Inc. sells advertising to various national, regional, and local customers. As of June 30, 2011, the company served approximately 14.5 million residential and commercial customers in the New Yor k State, the Carolinas, Ohio, southern California, and Texas. Time Warner Cable Inc. is based in New York, New York.
Advisors' Opinion:- [By Dan Radovsky]
AllThings D also reports that bids have to be at least $1 billion, and DIRECTV (NASDAQ: DTV ) is said to be ready with a bid of at least that much. Time Warner Cable (NYSE: TWC ) , Yahoo! (NASDAQ: YHOO ) , and the private-equity firms KKR, Guggenheim Digital, and Silverlake Partners are also ready to compete.
- [By Jayson Derrick]
Comcast (NASDAQ: CMCSA) and Charter Communications (NASDAQ: CHTR) are reported to be considering a joint bid for Time Warner Cable�(NYSE: TWC). Comcast gained 4.36 percent, closing at $49.52. Charter Communications gained 6.06 percent, closing at $134.66. Time Warner Cable was the biggest winner of the group, gaining 9.92 percent, closing at $132.85.
- [By Evan Niu, CFA]
Search giant�Google� (NASDAQ: GOOG ) recently outlined plans to expand its Google Fiber service to Austin, Texas. That represents a disruptive threat to local incumbent cable providers such as Time Warner Cable� (NYSE: TWC ) and�AT&T� (NYSE: T ) . Austinites will probably switch en masse to the new service, which will hurt both Time Warner and AT&T. Ma Bell promptly responded by announcing its own intention to build a gigabit fiber optic service if it could wrangle the same incentives as Google.
10 Best Media Stocks To Invest In 2014: DIRECTV(DTV)
DIRECTV provides digital television entertainment in the United States and Latin America. The company provides direct-to-home (DTH) digital television services, as well as multi-channel video programming distribution services in the United States. It offers various channels of digital-quality video entertainment and CD-quality audio programming directly to subscribers' homes or businesses, as well as video-on-demand services; and approximately 160 national high-definition television channels and 4 3D channels. The company also provides premium professional and collegiate sports programming, such as the NFL SUNDAY TICKET package, which allows subscribers to view the NFL games. In addition, it offers DTH digital television services in Latin America and the Caribbean, including Puerto Rico. The company provides its local and international programming under the DIRECTV and SKY brand names. As of December 31, 2010, it served approximately 19.2 million subscribers in the United States; and 8.9 million subscribers in Latin America. The company was founded in 1990 and is based in El Segundo, California.
Advisors' Opinion:- [By Douglas A. McIntyre]
Each day that passes, The Weather Channel continues to plead� for its viewers to switch from DIRECTV (NASDAQ: DTV), which has stopped running its content, over to carriers Dish, Optimum, or xfininty. “Pledge to switch” is a message on its website.� This website is increasing the center of The Weather Channel’s viability. But DirecTV continues to resist negotiations, increasing The Weather Channel’s big problem.
- [By , Zacks Investment Research]
Universal Electronics (UEIC) makes a broad line of pre-programmed universal remote control products, audio-video accessories, and software that are marketed to enhance home entertainment systems. Its customers include subscription broadcasters (i.e., DirecTV (DTV)), original equipment manufacturers (“OEMs”), international retailers, private labels, and companies in the computing industry. Approximately 63% of its sales came from outside the U.S. in the first quarter of 2014. It has a market cap of $645 million.
- [By Casey Kelly-Barton]
Luring business-class flyers with perks and privacy
Mint raises the question of how a budget airline can compete on luxury against carriers like American (NASDAQ: AAL ) , Delta (NYSE: DAL ) , and United (NYSE: UAL ) . It looks like the answer is by going over the top on amenities and getting flyers hooked with low introductory rates. The market's longest fully flat seats, 15-inch flat-screen monitors, DirecTV (NASDAQ: DTV ) , Sirius XM radio, tapas platters, and curated grooming product assortments from Birchbox are all part of the Mint package.
10 Best Media Stocks To Invest In 2014: Gannett Co. Inc. (GCI)
Gannett Co., Inc. operates as a media and marketing solutions company in the United States and internationally. Its Publishing segment publishes 83 U.S. daily newspapers with affiliated online sites, including USA TODAY, a national, general-interest daily newspaper; USATODAY.com; USA WEEKEND, a magazine supplement for newspapers; Clipper Magazine, a direct mail advertising magazine; bi-weekly Nursing Spectrum and NurseWeek periodicals; and military and defense newspapers. This segment also includes 17 paid-for daily newspapers; approximately 200 weekly newspapers, magazines, and trade publications; and approximately 600 non-daily publications, as well as involves in commercial printing, newswire, marketing, and data services operations. The company?s Digital segment owns and operates CareerBuilder, an employment Web site, which offers online recruitment and career advancement services for employers, employees, recruiters, and job seekers; ShopLocal, which provides multicha nnel shopping and advertising services; Planet Discover, which offers hosted search and advertising services; PointRoll, which provides digital marketing services and technology; and Schedule Star, which offers scheduling solution for high school athletic departments. Its Broadcasting segment operates 23 television stations and affiliated Web sites, which produce local programming, such as news, sports, and entertainment programming. This segment also includes Captivate Network, a national news and entertainment network that delivers programming and full-motion video advertising on video screens located in elevators of office towers and select hotel lobbies in North America. The company has strategic business relationships with online affiliates, including Classified Ventures, ShopLocal.com, Topix, and Metromix LLC, as well as strategic marketing agreement with Microsoft. Gannett Co., Inc. was founded in 1906 and is headquartered in McLean, Virginia.
Advisors' Opinion:- [By Ben Levisohn]
Gannett (GCI) rose 3.6% to $26.67 after Belo (BLC) shareholders approved a merger of the two companies. Belo’s stock fell 0.6% to $13.72.
Carnival (CCL) fell 5.3% to $32.70 today, a day after falling nearly 8% on disappointing earnings. Barron’s says it’s time to buy.
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