Deutsche Bank's Entertainment Spotlight

Deutsche Bank has published a research report on the Entertainment industry following 3Q results from the following companies: Walt Disney Company

,$34.97 Buy Liberty Starz

,$67.52 Buy Time Warner

,$31.52 Buy Viacom Inc. (NYSE: VIAb),$37.18 Buy In the report, Deutsche Bank writes "Of total 3Q10 home video -5.5% Y/Y, sell-through was -6.8% and rental -3.1%. Within sell-through, packaged was down 8.7% Y/Y and now 94% of total from 96% last year (blu-ray +70% Y/Y and DVDs -14%) while online was up 37% and now 6% of total, up from 4%. Despite the 9% packaged sell-through decline, it was noted that new release packaged sell-through is actually up, which is encouraging. Within rental, packaged (kiosks, rental stores, DVD by mail) was - 10% Y/Y and now 63% of the total while digital (online, VOD) was up 23% and now 27% of total. It was noted that Blu-ray players now reach 21m U.S. homes, and HDTV set penetration is 53%."