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.
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.
Comments
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...?