Much of last week's news centered around the OTT video market. The TPSI Global Consumer Media ended the week down 0.3 percent, slightly outperforming the broader market as measured by the S&P 500 index, which was down 0.8 percent. There were two double-digit winners: Salem Media and Lions Gate. On the losing end, EW Scripps, McClatchy and Tencent Music performed especially poorly.
In the OTT segment, several developments grabbed the headlines:
- Viacom (-2.7% for the week) was looking to expand its newly acquired unit Pluto TV, an AVOD (advertising VOD) provider, internationally.
- AT&T (+3.9%) provided an update on its (WarnerMedia's) yet to be named SVOD service. The launch will occur in 2020 Q1, with a beta release in 2019 Q4.
- Comcast (+0.9%) made clear that its (NBCUniversal's) also yet to be named SVOD offering will be home to content that currently is offered elsewhere and will be taken back.
- Walt Disney's (+0.7%) ESPN+ was buying up global football rights to support its US expansion. Also, Disney agreed to a buy-out deal with Comcast to take control of Hulu.
- French OTT-TV service Molotov (unlisted) may not be acquired by Altice Europe, but there appeared to be a back-up plan in the form of entrepreneur Xavier Niel acquiring a large stake.
- Earnings reports came in from Bilibili (-10%).
In other studio news:
- Lions Gate (+14%) investors seemed to be anticipating solid box office results from the third John Wick installment, and indeed by Sunday they appeared not to be disappointed.
- Also, earlier reports of looking to expand the Starz unit were turned around on Sunday with new rumours of Lion Gate possibly selling the company to CBS (-1.8%).
- Walt Disney and its Fox units were reported to be slashing more jobs.
- Disney could also be calling for a review of its global media account, with Omnicom (-0.1%), Dentsu (-9.5%) and WPP (+0.0%) possible winners.
Last week's earnings reports included those from:
- Gaming: Take-Two (+3.2%)
- Music: Tencent Music (-16%). The company further started putting premium content behind its paywall.
- Broadcasting: Mediaset (-1.8%), RTL (-2.1%).
- Advertising: Dentsu (-9.5%). The company launched a reorganisation.
Other news:
- Discovery (-2.1%) acquired Golf Digest from Conde Nast (unlisted).
- Salem Media (+18%) signed a deal with Trinity Broadcasting (unlisted) and benefited from its quarterly results from the previous week. EW Scripps (-22%) also extended its performance, based on its earnings report from the previous week - but in negative territory.
- McClatchy (-20%) completed the sale of its headquarters in a sale and lease-back construction. The stock is now down 71 percent since the end of 2018.
- Gannett (-3.9%) was fighting off a hostile takeover with the reelection of its board.
- ITV (-4.5%) was reported to be close to buying FA Cup rights.
- Naspers was selling comparison shopping site Buscape, but was not allowed to acquire the WeBuyCars site.
