The Telecompaper Stock Index Global Media ended week 42 up 1.2 percent, beating the S&P 500 (+0.5%). Broadcasters in the US (Meredith, +7.3%), the UK (ITV, +6.3%) and Australia (Seven West, +5.5%) led our basket. Lions Gate and ComScore (-11% both) closed the ranks. Netflix (-2.7% for the week) presented rather strong quarterly results. Investors initially responded positively, but by the end of the week the stock was down 2.7 percent from the week before.
Content
Netflix reported sound quarterly results. A return to high subscriber growth was welcomed, but Netflix's cautious words on the next few months, when competitors come to market with streaming services (Apple TV+, Disney+, HBO Max, Peacock) apparently spooked investors.
Walt Disney published the full list of content that will be available on Disney+ at launch on 12 November. WarnerMedia (AT&T) pulled another series, The West Wing, from Netflix to include on its own HBO Max service, set to launch in April 2020.
Vivendi took steps to strengthen its diverse activities in books (Editis), ticket sales (See Tickets) and television (Canal+), while it is still looking to sell a stake in its music unit (Universal Music Group). Vivendi, after having prevailed in court (in Spain) decided not to go forward with its suit against Mediaset in the Netherlands, but its Italian case is still alive.
ProSieben fully acquired eSports.com, with its Red Arrow unit still on the block. Comcast also went into e-sports, with SK Telecom of South Korea.
Advertising
S&P downgraded Publicis, after its weak Q3 results, but the firm managed to win the USD 3 billion Walt Disney media account, together with Omnicom. The latter posted ok Q2 results, albeit below the market expectations. Also on the advertising market, AT&T's Xandr acquired Clypd, which counted RTL among its shareholders.
Platforms
Italy's council of ministers approved its own version of the 3 percent digital tax that was launched in France a few weeks ago.
Google introduced a new set of hardware at its Made by Google event. It includes two smartphones (Pixel 4 and Pixel 4 XL), a smart speaker (Google Nest Mini), a WiFi-router (Nest WiFi Router), a beacon, i.e. a router cum smart speaker (Nest WiFi Point), a laptop (Pixelbook Go) and earphones (Pixel Buds).
Facebook's Libra Association appointed the members of its board while the association was down to 21 members, from 28 at the outset. Facebook further put efforts into organising content for its Facebook Watch video platform, as well as for its news section.
