In a new report, Albert Fried & Company analyst Rich Tullo discusses his take on the cord-cutting phenomenon in TV and the economic factors that are actually at play for leading disruptors Netflix, Inc. NFLX, Amazon.com, Inc. AMZN and Time Warner Inc TWX.
According to Tullo, cord-cutting is only one element of a major shift in media content from tangible devices and paper to digital binary code. Tullo uses the acronym MASS (Media as a Service) to describe the cloud-based nature of the transition.
Related Link: Gabelli & Co's Top Technology, Media And Telecom Stocks For 2016
Tullo believes there are several key forces driving this transition, some of which might surprise casual observers. He said cord-cutting is not driven by cost, but rather by social influences.
"Social Media has and will continue to have an outsized influence on business decisions because decision makers are acting on correlation and not causation," he added.
In addition, Tullo notes international expansion as a long-term MASS trend rather than a short-term hit.
Disclosure: the author holds no position in the stocks mentioned.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
|---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
