Music, Film, & TV Scorecard - Thematic Research
As television moves rapidly from scheduled programming to on-demand viewing, a fierce battle is raging in the media sector over who will control the customer relationship: content owners, cable & satellite operators, or the tech titans. In 2019, Apple will enter the TV streaming market in earnest and Netflix’s user base will likely surpass 140 million. This will force further rounds of defensive M&A by the media industry’s incumbents, resulting in a string of copycat deals along the lines of AT&T’s acquisition of Time Warner, Disney’s acquisition of 21st Century Fox’s media assets or Comcast’s bid for Sky. The industry should also be prepared for tighter copyright regulation, with a law on music already approved in the US and a European Union (EU) directive to be voted on in early 2019. If approved, the latter promises to be highly disruptive, due to the high compliance costs involved.
Our thematic scoring methodology is designed to identify tomorrow’s leaders rather than today’s incumbents, based on their competitive position in the most important themes impacting their industry.
To do this, we score the top 600 TMT companies against 60 investment themes, creating a database of 36,000 thematic scores - our thematic engine - to help us identify the strongest and weakest players in each sector over the next two years, once all relevant themes have been taken into account.