Traditional media companies had an amazing year on Wall Street. While the Dow Jones Index increased a respectable 6.7%, the US Broadcasting and Entertainment Index surged 40%. In fact, other than Sony (dragged down by its hardware business), 6 of the top 7 media conglomerates substantially outperformed the NASDAQ 500.
Comcast absorbed NBC Universal and is now the biggest player in the sector, with a market cap of $99.28 billion. Investors shrugged off pesky details at News Corp, such as bribery, phone-hacking and perjury, increasing the share price by 47%. The biggest winner was Lionsgate Entertainment, which reaped the benefits of hugely successful franchises Hunger Games and Twilight.
The worst performing media category was video games. Electronic Arts (-30%), Activision (-13%) and Zynga (-67%) saw their margins eaten by free to play (f2p) casual mobile games.
Even newspaper conglomerates outperformed the S&P 500, which rose by 13.7%. Six of the 8 major US publicly traded companies were up last year, four of those by more than 30%. These stocks have been pummeled over the last few years but investors liked the increase in profits (although revenue continues to fall dramatically), smart investments in digital start-ups and the widespread introduction of pay-walls. Lee (+69), McClatchy (36.8%), EW Scripps (35%) and Gannett (34.7%) were the biggest winners.
In a period of high unemployment and economic uncertainty, Wall Street clearly thinks that “Content is King”
|Time Warner Cable||$97.19||53%|
|Sirius XM Network||$2.89||61%|
|Take Two Interactive||$11.01||-19%|
Latest posts by Levi Shapiro (see all)
- Harvard Professor Yochai Benkler: Cooperation Trumps Self-Interest - November 26, 2013
- Older, Richer, More Customers: Accelerators Go Corporate - November 23, 2013
- French President Hollande Leads Delegation to Meet Israeli Startups - November 20, 2013
Subscribe to VC Cafe via email
VC Cafe Categories