HBO Now, Netflix And More: What Wedbush Analysts Are Watching

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In a report published Tuesday, Wedbush analyst Michael Pachter offered his outlook in the Film and Video On Demand space.
The Big Screen
According to Pachter, second quarter and full year 2015 industry box office revenue will be higher by roughly seven percent. The second quarter will compare favorably against the same quarter a year ago led by the new
Avengers
title that is expected to generate over $550 million at the domestic box office. The third quarter is setting up favorably with a "very easy" year-over-year comparison. The fourth quarter will also compare favorably, led by the new
Star Wars
film and the conclusion of the
Hunger Games
franchise.
IMAX/Disney Deal
Pachter stated that
IMAX Corporation'sIMAX
new release slate deal with
Walt Disney CoDIS
is "not surprising" and the deal is "reassuring" given a "robust" lineup of films. The deal includes two
Star Wars
films and five Marvel titles and two more Pixar titles in addition to four of Disney's own titles. The analyst noted that the deal solidifies IMAX as the theatre destination of choice for Disney's "blockbuster" titles.
HBO Now Debut
HBO Now strategically debuted on April 12 for $14.99 a month, coinciding with the season five debut of
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Game of Thrones.
HBO Now represents an opportunity for some viewers to "cut the cord" and could threaten Streaming Video on Demand competitors given its appeal to millennials with quality content and an expanded partnership with
Vice.Amazon Versus Netflix Battle Heating UpNetflix, Inc.NFLX
was the first mover in subscription-based online streaming and has thus far delivered "compelling" original content but is seeing increased competition from
Amazon.com, Inc.AMZN
. The analyst noted that Amazon has "clearly gained ground" and has seen its original
Transparent
win a Golden Globe for Best TV Series. Moreover, Pachter suggested that Amazon will outbid its competitors to win the library of
Seinfeld
episodes that could result in taking market share, especially from Netflix.
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Posted In: Analyst ColorAnalyst RatingsAvengersHBO NowHunger GamesimaxMichael PachterSeinfeldStar WarsWedbush
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