Thursday, October 25, 2007

Facing The Market

The value placed on Facebook by Microsoft puts all deals in the internet TV sector into the shade, but it once again it proves that the drivers to value are growth, reach and market dominance.

Will there be another massive winner like YouTube in the sector ? The market seems not to think so.


This graph shows how pretty much every listed company in the sector in the UK and US is considerably down over the past six months.

1 comment:

M Vinson said...

I think there's so much promise in this sector, and I'm confused (and disappointed) by the lack of interest to this point among larger players. I -- along with many, I guess -- have suffered through an 80% drop in my Narrowstep holdings. Despite the weakness across the sector, however, I'm considering rebasing at the current level because I still believe IPTV is fundamentally a disruptive technology. How else can you look at it?

As an example, ITV shouldn't be cutting regional news services; they should be redirecting investment into lower cost (production-to-air) but still high-quality operating models incorporating IPTV. That decision seems a no-brainer, unless your stuck in an old paradigm.

Once a few companies establish lower cost operating models with high production value, high quality content, it's only a matter of a few years before the creative destruction process holds true and the companies march up-market through their advantageous cost and direct-to-consumer positions.

Were I a broadcaster, I'd be very nervous -- or make that more nervous than they already are.

Now, where are the investors...?