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Fox, Viacom & WWE — entertainment stocks on investors’ radar

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MUMBAI: Stock-Callers.com has initiated research coverage on four Diversified Entertainment companies, namely: Twenty-First Century Fox Inc., Viacom Inc., Lions Gate Entertainment Corp., and World Wrestling Entertainment Inc. The Entertainment Industry is a constantly evolving group that mainly comprises television networks and station owners, which are typically involved in programming and production of content. Learn more about these stocks by downloading their comprehensive and free reports at:

Twenty-First Century Fox

New York headquartered Twenty-First Century Fox Inc.’s shares finished Friday’s session 2.03% lower at $27.94. A total volume of 29.19 million shares was traded, which was above their three months average volume of 8.53 million shares. The stock has gained 0.23% on an YTD basis. The Company’s shares are trading above their 200-day moving average by 0.19%. Moreover, shares of Twenty-First Century Fox, which together with its subsidiaries, operates as a diversified media and entertainment company in the US, the UK, Continental Europe, Asia, Latin America, and internationally, have a Relative Strength Index (RSI) of 30.99.

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On May 08th, 2017, Twenty-First Century Fox announced the appointment of Melody Hildebrandt to the role of Global Chief Information Security Officer. In this role, Ms. Hildebrandt will oversee the protection and risk management for enterprise communications, technologies, and assets for 21CF. She joins the Company from Palantir Technologies, where she served as executive vice president and directed the cybersecurity practice. Her appointment is effective on June 01st, 2017.

On May 11th, 2017, research firm Rosenblatt upgraded the Company’s stock rating from ‘Neutral’ to ‘Buy’. FOXA complete research report is just a click away and free at:

Viacom

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Shares in New York headquartered Viacom Inc. ended the day 0.26% higher at $34.61 with a total trading volume of 4.39 million shares. The stock is trading 12.96% below its 200-day moving average. Shares of the Company, which operates as media brand worldwide, have an RSI of 16.05.

On May 05th, 2017, research firm RBC Capital Markets reiterated its ‘Underperform’ rating on the Company’s stock with a decrease of the target price from $35 a share to $30 a share.

On May 10th, 2017, Viacom’s emerging entertainment technology group, Viacom NEXT, premiered an original virtual reality music experience for the song “Withdrawal” by Atlantic Records recording artist Max Frost at the 2017 Microsoft Build Developer Conference. The video harnesses cutting-edge Microsoft Mixed Reality Capture technology, bringing fans face-to-face with photorealistic holographs of Frost, who sings and plays multiple instruments simultaneously in an immersive, underwater environment.

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Lions Gate Entertainment

Santa Monica, California headquartered Lions Gate Entertainment Corp.’s stock rose 1.63%, closing the session at $23.72. A total volume of 528,394 shares was traded, which was above their three months average volume of 488,870 shares. The Company’s shares have gained 1.89% in the last one month. The stock is trading 0.25% below its 50-day moving average. Additionally, shares of Lions Gate Entertainment, which engages in motion picture production and distribution, television programming and syndication, home entertainment, branded channel platforms, interactive ventures and games, and location-based entertainment in Canada, the US, and internationally, have an RSI of 54.96.

On May 05th, 2017, Lions Gate Entertainment announced that it will release its Q4 and full year financial results for the fiscal year ended March 31st, 2017 after market close on Thursday, May 25th, 2017. Senior management will hold its analyst and investor conference call to discuss the Company’s FY17 financial results at 5:00 p.m. ET on that same day. Sign up for your complimentary research report on LGF-B at:

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World Wrestling Entertainment

On Friday, shares in Stamford, Connecticut headquartered World Wrestling Entertainment Inc. finished the session 0.94% lower at $19.94. A total volume of 257,981 shares was traded. The stock has gained 9.02% on an YTD basis. The Company’s shares are trading above their 200-day moving average by 0.06%. Furthermore, shares of World Wrestling Entertainment, which engages in the sports entertainment business in North America, Europe, Middle-East, Africa, Asia/Pacific, and Latin America, have an RSI of 37.08.

On May 04th, 2017, World Wrestling Entertainment announced financial results for its first quarter ended March 31st, 2017. Revenue for the quarter increased 10% to $188.4 driven by the Company’s Live Events, Network, and Television segments. The Company also reported net income of $0.9 million, or $0.01 per share; operating income of $4.0 million; and adjusted OIBDA of $18.6 million for Q1 2017. Get free access to your research report on WWE

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English Entertainment

The end of Freeview? Britain debates switching off aerial tv by 2034

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UK: The aerial is losing its grip. As broadband becomes the default way Britons watch television, the UK is edging towards a decisive, and divisive, question: should Freeview be switched off by 2034? The issue, highlighted in reporting by The Guardian, has exposed deep fault lines over access, affordability and the future of public service broadcasting.

For nearly 25 years, Freeview has delivered free-to-air television from the BBC, ITV, Channel 4 and Channel 5 to almost every corner of the country. Even now, it remains the UK’s largest TV platform, used in more than 16m homes and on around 10m main household sets. Yet the same broadcasters that built it are now pressing for its closure within eight years.

Their case rests on a structural shift in viewing. Smart TVs, superfast broadband and the Netflix-led streaming boom have pulled audiences online. Advertising economics have followed. By 2034, the number of homes using Freeview as their main TV set is forecast to fall from a peak of almost 12m in 2012 to fewer than 2m, making digital terrestrial television, or DTT, increasingly costly to sustain.

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But critics say the rush to switch off risks abandoning those least able, or least willing, to move online.

“I don’t want to be choosing apps and making new accounts,” says Lynette, 80, from Kent. “It is time-consuming and irritating trying to work out where I want to be, to remember the sequence of clicks, with hieroglyphics instead of words. If I make a mistake I have to start again.”

Lynette is among nearly 100,000 people who have signed a “save Freeview” petition launched by campaign group Silver Voices. She fears the government is about to “take [Freeview] away from me and others who either don’t like, can’t afford, or can’t use online versions”.

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Official figures underline the fault lines. A report commissioned by the Department for Culture, Media and Sport estimates that by 2035, 1.8m homes will still depend on Freeview. Ofcom’s analysis shows those households are more likely to be disabled, older, living alone, female, and based in the north of England, Wales, Scotland and Northern Ireland.

Freeview is owned by the public service broadcasters through Everyone TV, which also operates Freesat and the newer streaming platform Freely. After two years of review, DCMS is expected to set out its position soon, drawing on three options proposed by Ofcom: a costly upgrade of Freeview’s ageing technology; maintaining a bare-bones service with only core PSB channels; or a full switch-off during the 2030s.

The broadcasters have rallied behind the third option. They argue that 2034 is the logical cut-off, when transmission contracts with network operator Arqiva expire. By then, they say, the cost of broadcasting to a dwindling audience will far outweigh the returns from TV advertising.

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Ofcom agrees a crunch point is approaching. In July, the regulator warned of a “tipping point” within the next few years, after which it will no longer be commercially viable for broadcasters to carry the costs of DTT.

Others see risks beyond economics. Questions remain over whether internet TV can reliably deliver emergency broadcasts, such as the daily Covid updates, in the way that universally available DTT can. The UK radio industry has also warned that an internet-only future for TV could push up distribution costs and force some radio stations off air if PSBs no longer share Arqiva’s mast network.

“It is a political hot potato,” says Dennis Reed, founder of Silver Voices, who says he has “dissociated” his organisation from the government’s stakeholder forum, which he believes is “heavily biased” towards streaming.

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The Future TV Taskforce, representing the PSBs, counters that moving online could “close the digital divide once and for all”. “We want to be able to plan to ensure that no one is left behind,” a spokesperson says, adding that rising DTT costs could otherwise mean cuts to programme budgets.

The numbers show the scale of the challenge. Of the 1.8m Freeview-dependent homes projected for 2035, around 1.1m are expected to have broadband but not use it for TV. The remaining 700,000 are forecast to lack a broadband connection altogether.

Veterans of the analogue switch-off, completed in 2012 after 76 years, recall similar fears of “TV blackout chaos”. Around 6 per cent of households were labelled “digital refuseniks”, yet a targeted help scheme and a national campaign, fronted by a robot called Digit Al voiced by Matt Lucas, delivered a largely smooth transition.

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This time, the BBC is less keen to foot the bill. Tim Davie, the outgoing director general, has said the corporation should not fund a comparable support programme for a Freeview switch-off.

Research for Sky by Oliver & Ohlbaum suggests that with early awareness campaigns and digital inclusion measures, only about 330,000 households would ultimately need hands-on help ahead of a 2034 shutdown.

Meanwhile, viewing habits continue to fragment. Audience body Barb says 7 per cent of UK households no longer own a TV set, choosing to watch on other devices. In December, YouTube overtook the BBC’s combined channels in total UK viewing across TVs, smartphones and tablets, albeit measured at a minimum of three minutes.

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That shift may accelerate. YouTube has recently blocked Barb and its partner Kantar from accessing viewing session data, limiting transparency just as online platforms consolidate power.

“When the government chose British Satellite Broadcasting as the ‘winner’ in satellite TV it was Rupert Murdoch’s Sky instead that came out on top,” says a senior TV executive quoted by The Guardian. “There already is such an outsider ready to be the winner in the transition to internet TV; it is YouTube.”

Freeview’s future now hangs on a familiar British dilemma: modernise fast and risk exclusion, or protect universality and pay the price. Either way, the aerial’s days as king of the living room look numbered.

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