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The AlphaSense holiday guide to the entertainment industry

AlphaSense

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December 17, 2019


4 gifts with tags from AMC, Disney and IMAX.
4 gifts with tags from AMC, Disney and IMAX.

Key insights and trends you need to cut to the heart of the entertainment industry this holiday season.

Streaming services are the future, with juggernauts like Netflix and Amazon on the verge of disrupting the old-fashioned cinema experience. Or so the conventional wisdom among investors often goes.

But don’t tell that to audiences worldwide lining up to watch marquee titles on the big screen. This year, Disney’s (DIS) Frozen 2 breezed by the $1 billion mark at the global box office, becoming the sixth Disney film and the eighth release this year to cross that mark. Both are records.

As the end of the year approaches, entertainment companies and their investors face a time of extreme pressure as companies square off for consumer attention and cash.

This holiday season, AlphaSense has you covered. Over the next several days, we’ll bring you the key insights and trends you need to cut to the heart of the industry. We’ll also analyze the key players and key opportunities in this dynamic sector.

A key focus for this time of year: Box office releases, performances, and attendance as consumers flock to the movies. This interest is reflected in searches for “Theatrical Releases” in the AlphaSense platform, which are soaring:

AS-Blogpost-Holiday-Guide-Document-trends

Despite the slew of streaming services vying for customer attention, the in-theater experience remains distinct. As a result, the domestic box office is slated to take in $11.5 billion to $11.9 billion, according to Barclays, on par with 2018’s record $11.9 billion. 

According to JP Morgan, those revenues are driven by rising ticket pricing, which exhibited a Cumulative Average Growth Rate of 3% since 2000. Meanwhile, theater attendance has remained consistent since 2010, even as the amount of streaming services has increased since then.

As the holiday season gets into full swing, investors will keep a sharp eye on where that near-record movie theater spending is flowing and which companies will be the biggest beneficiaries.

The sell-side champion companies that add the most value to theater-going experience as top picks and the beneficiaries of these trends. IMAX (NYSE: IMAX) and AMC (NYSE: AMC). Programming juggernaut Disney (NYSE: DIS) continues its hit streak and is another big winner.

Over the next several days, we’ll dig into sentiment analysis, critical analyst commentary, and more for the industry’s top picks.

Stay tuned for IMAX, AMC, and Disney teardown this week.

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