Entertainment is evolving as we plow further into the 21st century. As the late, great Douglas Adams once said – years before anyone else could have – the next stage of creativity, in the age of the internet, is going to be something like the when the Amazon, Nile, Mississippi, and Yangtze rivers all hit the ocean. The lines blur. The dominant, bounded systems suddenly have to compete with wide open water and no differentiation – when their monopolies wither and every droplet is suddenly in a mad scramble against every other droplet.
Such it is today with the entertainment industry. The old notion of a few major networks controlling the media culture is dead and gone.
Nothing symbolizes that more than the streaming OTT media space. It’s a massive growth thesis in the years ahead for investors. And that sense is heightened today as the trend is sharply accelerated by the coronavirus stay-at-home context that defines so much of US culture in 2020 – something that will likely be the case until we have a widely distributed vaccine, which will be well into 2021, based on current data and forecasts.
With that in mind, here are a few of the more interesting stocks situated for this dynamic right now: Live Nation Entertainment, Inc. (NYSE:LYV), Valiant Eagle Inc (OTCMKTS:PSRU), Sony Corp (NYSE:SNE), and CBS Corporation Common Stock (NASDAQ:VIAC)
Live Nation Entertainment, Inc. (NYSE:LYV) operates as a live entertainment company. It operates through Concerts, Ticketing, and Sponsorship & Advertising segments. The Concerts segment promotes live music events in its owned or operated venues, and in rented third-party venues; operates and manages music venues; and produces music festivals and creates associated content.
The Ticketing segment manages the ticketing operations, including the provision of ticketing software and services to clients, as well as ticket resale services; and offers online access for customers relating to ticket and event information through its primary Websites, livenation.com and ticketmaster.com. The Sponsorship & Advertising segment sells sponsorships and placement of advertising, including signage, online advertising, and promotional programs, as well as live streaming and music-related content; and ads across its distribution network of venues, events, and Websites.
Live Nation Entertainment, Inc. (NYSE:LYV) just announced the completion of its previously announced offering of $1.2 billion in aggregate principal amount of 6.5% senior secured notes due 2027.
As previously announced, due to overwhelming investor demand the offering was upsized to $1.2 billion from $800 million. Proceeds from the transaction will be used for general corporate purposes.
The stock has suffered a bit of late, with shares of LYV taking a hit in recent action, down about -6% over the past week.
Live Nation Entertainment, Inc. (NYSE:LYV) managed to rope in revenues totaling $1.4B in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of -21%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($3.3B against $4.7B, respectively).
Valiant Eagle Inc (OTCMKTS:PSRU) bills itself as a media conglomerate focused on “the energizing of entertainment in television, film, Internet, and social media. This is a publicly traded corporation focused on the energizing of celebrity entertainment, social media and TV communications. VE aims to achieve an unparalleled advancement towards media through music, sports and, with respect to the millennial generation, through technology.”
This is an OTT streaming entertainment play with original content and original ways of distributing it to a world currently suffering from a need for an excess of new choices and systems of value in the entertainment world. The company has a unique model of monetization as well, and has already started to show tangible growth.
Valiant Eagle Inc (OTCMKTS:PSRU) recently announced that it has opened its office in Reseda, California. The office will serve as an incubator to house its over two dozen streaming and broadcast channels. With an overwhelming demand for original and exciting content, XMG is poised to provide programming with which to accommodate its target respective demographic. Its sister channel, OKTV, has seen recent success stemming from the unfortunate stay-at-home mandates caused by Covid 19 that has created a surge in viewers increasing their binging of television shows.
XMG CEO Xavier says, “It’s a natural progression that weve needed to open an office as a requirement of our rapid growth. Weve outgrown the space that we’ve been working in and needed a facility that could also accommodate our future anticipated exponential growth.”
Even in light of this news, PSRU has been rangebound over the past two months, with a potential breakout trigger above in the $0.25-0.30 zone, where the stock was trading a few days ago. Shares of the stock have powered higher over the past month, rallying roughly 43% in that time on strong overall action.
Valiant Eagle Inc (OTCMKTS:PSRU) managed to rope in revenues totaling $139K in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 59.3%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($92K against $23K).
Sony Corp (NYSE:SNE) promulgates itself as a company that designs, develops, produces, and sells electronic equipment, instruments, and devices for the consumer, professional, and industrial markets worldwide. In addition, Sony is one of the world’s biggest creators and producers of entertainment content.
Beyond that, the company researches, develops, designs, produces, markets, distributes, sells, and services video and sound products; interchangeable lens, compact digital, and consumer and professional video cameras; display products, such as projectors and medical equipment; mobile phones, tablets, accessories, and applications; and metal oxide semiconductor image sensors, charge-coupled devices, large-scale integration systems, and other semiconductors.
Sony Corp (NYSE:SNE) just announced that it will be making several donations to leading organizations in the production industry. The fund is designed to help mitigate disruption of the creative community as a result of the COVID-19 pandemic.
Funding for this worldwide program will be provided by the “Sony Global Relief Fund for COVID-19,” which was established in April 2020 to help those affected by the pandemic. Funds will be contributed globally to various organizations in North America, Europe and Japan and will also be used at a regional level to support Sony’s Imaging PRO Support program.
Even in light of this news, SNE hasn’t really done much of anything over the past week, with shares logging no net movement over that period. Shares of the stock have powered higher over the past month, rallying roughly 8% in that time on strong overall action.
Sony Corp (NYSE:SNE) generated sales of $1748.7B, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of -29% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($3360.1B against $6240.4B, respectively).
CBS Corporation Common Stock (NASDAQ:VIAC) operates as a media and entertainment company worldwide with multiple segments.
The TV Entertainment segment distributes a schedule of news and public affairs broadcasts, and sports and entertainment programming; produces, acquires, and/or distributes programming, including series, specials, news, and public affairs; operates online content networks for information and entertainment; and streaming subscription services.
This segment also operates CBS Sports Network, a 24/7 cable program service that provides college sports and related content, as well as broadcast television stations.
CBS Corporation Common Stock (NASDAQ:VIAC) just announced a multi-year deal with Cox Media Group (“CMG”) that renews CBS Television Network affiliation agreements for five stations, including two top 50 market affiliates, KIRO-TV in Seattle, WA and WJAX-TV in Jacksonville, FL.
The agreement for WJAX-TV was approved by the station’s licensee, Hoffman Communications, to whom CMG provides certain services for the operation of the station. The five markets combined reach nearly 3% of the U.S. and serve more than 3 million households. CMG is among the top ten largest operators of CBS affiliates. Earlier this year, in February 2020, ViacomCBS and CMG entered into a multi-year renewal of the affiliation agreements for CMG’s WXVT-LD located in Greenville/Greenwood, Mississippi.
It will be interesting to see if the stock can break out of its recent sideways action. Over the past week, the stock is net flat, and looking for something new to spark things. CBS Corporation Common Stock (NASDAQ:VIAC) managed to rope in revenues totaling $6.7B in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 60%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($589M against $8.5B, respectively).