The Bottom Line: Streaming wars continue to disrupt broadcaster’s share price
May 25, 2023
In this month’s iSportConnect Sports Business Index our Content Manager, Alex Brinton, dives deep into this month’s movers and shakers with a particular focus on the world of broadcast.
Let’s start by focussing on the wonderful world of television and streaming. There are some big winners and big losers all over the industry. Amazon are the biggest winners of this month, and the year so far, they have seen a share price increase of 38% in 2023, 29% more than the 9% average on the S&P 500. While their Q1 results have not set the world alight, they were better than expected and as a result have result in an encouraging response from the market.
Comcast have had a strong month as well seeing their market cap overtake Disney this month by moving from $155bn to $167bn. It has also been a strong month for Netflix as well with a share price increase of 12.097%, their biggest jump since October 2022. This came after they announced that nearly five million account holders are using the service’s advertisement tier.
Both Comcast and Netflix are benefitting from a growing perception that the major media companies are becoming more rational in their investment decisions together with a general move towards Tech as investors become more positive on the economy.
Further down the list Live Nation, Ticketmaster’s parent company, saw a rise of 23.58% after announcing impressive Q1 earnings. The company’s CEO, Michael Rapone said: “What is clear as we look at our results and operating metrics is that global demand for live events continues to reach new heights — demand has been growing for a long time and is showing no signs of letting up.”
They are benefitting from the pattern of consumers wanting to enjoy live experiences again, which we see across many sectors such as Travel and Entertainment.
Take a look at how the rest of the Index performed below: