This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Who Wins the Original Content War?

Further fueling the fire is the fact that consumers don't care how they watch shows. For every millennial that's comfortable watching shows via their iPhone, a proportionate number of Baby Boomers prefer to watch on a traditional television. Despite the technological difference, they share one common trait: the content has to be good. In the "golden age of content," there has been no shortage - from AMC Networks' (AMCX) Walking Dead to Amazon's Alpha House. Still, a hit show is a formula that no one can 100% predict, so TV networks are not only competing with themselves and premium channels like Time Warner's (TWX) HBO and CBS' (CBS) Showtime, but the slew of nontraditional Web-only companies eager to get in the game.

"These companies are very, very good at analyzing data and they use it to further their businesses, but when it comes to what's going to be a hit show ... It's a very mysterious thing as to what's going to resonate with people," said Paul Verna, senior analyst at eMarketer.

The consumer may have more choice now when it comes to watching television and can even go so far as to drop their traditional cable TV package, but there are still limitations, specifically different companies gaining exclusive content deals. For instance, I don't have Amazon Prime so that means I can't watch Downton Abbey, which Amazon gained the exclusive rights to recently. But I do have Netflix and HBO, so House of Cards and Game of Thrones is viewable.

Verna says this is still a disadvantage for consumers because they're not likely to buy all the services, they will still have to pick and choose what best suits them. And that means it will be hard for one streaming service to win over them all. "The audience is there, but the audience is very fragmented."

Adgate agrees. "There no real reach vehicle online. You're not reaching a lot of viewers. This is just hyper-fragmented," he says. "There's just more and more choices meaning there is just going to be more and more programs to watch and it's going to get harder and harder for any particular program or advertiser" to dominate.

This is where the original content will play an important role. "This is going to be a very competitive landscape in the coming years," Adgate noted.

It will also be "the next hot product category with advertisers. The ones who watch these shows are the ones who advertisers covet -- the 18 to 49 age group," Adgate stated.

Indeed it already is. Yahoo! is hoping to woo advertisers by culling four new Web series that would rival shows on Netflix or premium cable channels, according to The Wall Street Journal.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AMZN $380.16 0.00%
NFLX $474.91 0.00%
AAPL $128.46 0.00%
FB $78.97 0.00%
GOOG $558.40 0.00%

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs