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”
Company |
Price 1/1/13 |
Change |
Walt Disney | $49.85 | 32% |
Comcast | $37.36 | 54% |
Time Warner | $47.83 | 31% |
NewsCorp | $26.24 | 47% |
CBS | $38.05 | 28% |
Discovery | $63.48 | 59% |
Sony | $11.20 | -38% |
Time Warner Cable | $97.19 | 53% |
Charter | $76.24 | 34% |
Dish Network | $36.40 | 25% |
Belo Corp | $7.67 | 21% |
Scripps Network | $57.92 | 31% |
AMC Networks | $49.50 | 32% |
Viacom | $54.27 | 13% |
DirecTV | $50.16 | 13% |
Sirius XM Network | $2.89 | 61% |
Lionsgate | $16.40 | 97% |
Activision Blizzard | $10.62 | -13% |
Electronic Arts | $14.52 | -30% |
Amazon | $250.87 | 45% |
TiVO | $12.31 | 37% |
Apple | $532.17 | 33% |
Netflix | $92.59 | 33% |
Take Two Interactive | $11.01 | -19% |
$26.22 | -30% | |
Zynga | $2.36 | -67% |
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