Instant Video Not Enough for Netflix, Amazon
24/08/12 14:50
Netflix (NASDAQ: NFLX) is still experiencing problems. They have had slower subscriber growth and a sharp drop in their second quarter earnings. The streaming video company is also facing threats from companies such as Verizon Communications (NYSE: VZ) and Coinstar (NASDAQ: CSTR), which are launching their own streaming video services. Content costs are rising. At the same time pricing moves by internet service providers could lead to lowered bandwidth use.
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Lions Gate Swings Low
16/08/12 10:24
Lions Gate (NYSE: LGF) recently reported a second quarter net loss of $44.2 million compared with a gain of $10.3 million the year prior. Revenue increased 81% fueled by the release of "The Hunger Games." This revenue was not enough to offset the higher marketing costs to release the movie. Lions Gate released 5 movies in theaters in the second quarter, an increase from just one the year prior. The company has yet to see the benefits from home video sales of these releases, which is set for the third quarter. Lions Gate also cited the expense of integrating Summit Entertainment as a cause of profit loss. Lions Gate acquired Summit Entertainment, which made such films as "Twilight," for $412.5 million in January.
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Newspapers Face Tough Transitions
10/08/12 11:39
The New York Times (NYSE: NYT) recently announced that they will be selling About.com to Answers.com for $210 million. The About.com unit took a nearly $200 million write-down in the second quarter while revenue declined 8.7%. The site has had difficulty coping with changes to Google’s algorithms. The change affected online traffic, leading to a decline in display and click advertising. Since the New York Times purchased About.com in 2005, the site has produced profits that helped bolster the company’s financial picture. At the same time the company’s newspaper business struggled to make the transition to digital.
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