From Nasdaq:

Media companies are facing challenges due to the rise of streaming platforms and declines in traditional television. Advertisers are hesitant to spend in the face of inflation and cord-cutting. However, companies like Disney are benefiting from high-speed broadband demand and technological advancements.

Investing in media companies with original content creation and high-speed internet demand presents a compelling opportunity for growth. Successful content creation enhances subscriber loyalty while diversifying revenue streams through diverse digital platforms, such as websites and targeted advertising.

Media companies are altering business models to provide cost-effective options to consumers. This shift in consumer behavior has resulted in the industry adopting alternative business models, such as skinny bundles, to attract a wider audience and enhance competitiveness.

With the growing demand for high-speed internet, companies providing engaging digital experiences are seeing growth opportunities. Continuous investment in technology, content innovation, and strategic partnerships will be crucial for companies to stay ahead.

Disney and Paramount Global are set to report earnings soon. Disney has been benefiting from a solid revival in theme parks and a focus on sports streaming. Paramount Global has seen a spike in viewership for its streaming services and is expected to have strong subscriber growth.

Zacks proprietary methodology recommends media stocks like Disney and Paramount Global, which have the potential to beat earnings estimates. Disney is expected to report first-quarter fiscal 2024 results on Feb 7, while Paramount Global is set to report fourth-quarter 2023 results on Feb 28.



Read more: 2 Media Stocks Set to Beat Estimates This Earnings Season