3 Media Stocks in Focus: Viacom’s Digital Growth, Netflix in Europe, DirecTV Raises Prices
Viacom (NYSE:VIAB): Philippe Dauman, Viacom’s president and CEO, touted the company’s digital revenue opportunities in an interview with CNBC. “[Social and mobile media grow] our revenue, and all this technological change is good for us, in particular because our audiences are living on their devices and they also live watching television,” Dauman said. “The more opportunities they have to engage, watch, and experience our content in more places, on more devices, the more revenue we can ultimately generate.” Dauman believes that companies like Facebook (NASDAQ:FB) and Twitter are not competitors to Viacom but enablers of its content, helping the business grow its digital revenues.
Netflix (NASDAQ:NFLX): Netflix increased its exposure in Europe when Com Hem, the European cable provider, announced that the streaming service will be available through TiVo (NASDAQ:TIVO) set-top boxes in December. Netflix Chief Financial Officer David Wells said in a statement, “We would love to reduce the friction to the end consumer, and to be available via the existing device in the home which is the set-top box.” Wells also added that Netflix is still open to similar deals with content and cable providers in the United States.
DirecTV (NASDAQ:DTV): DirecTV President and CEO Michael White, speaking at the Goldman Sachs Communacopia conference, said that his company will have to raise its prices in 2014 as its own programming costs continue to grow. Speaking on DirectTV’s exclusive deal with the NFL through its Sunday Ticket package, White said: “It’s one of the few exclusive properties left in the media space. I’m still optimistic we will still be able to do that. But it’s too soon to speculate.” White added that although Sunday Ticket is a loss leader, it has helped DirecTV increase its subscriber base in the third quarter. Further, White said that any potential merger between DirecTV and Dish Network (NASDAQ:DISH) would likely be hindered by regulators in the U.S.