In this article, we will discuss the 5 biggest broadcasting companies in the world. If you want to read our analysis of the broadcasting industry, you can head on to the 15 Biggest Broadcasting Companies in the World.
5. BCE Inc. (NYSE:BCE)
Market Cap: $41.30 billion
BCE Inc. (NYSE:BCE) is a telecommunications and media firm that serves residential, business, and wholesale customers in Canada with cellular, wireline, Internet, and television (TV) services. BCE Inc. (NYSE:BCE) is one of the big three national wireless carriers, with roughly 10 million customers constituting about 30% of the market in Canada. The corporation is divided into three divisions: Bell Wireless, Bell Wireline, and Bell Media. Bell Wireless provides wireless phones, data communication products, services, and consumer gadgets. Bell Wireline provides data services such as internet access, Internet protocol television (IPTV), local telephone and long-distance services, other communication services and products, and satellite TV and connectivity services.
BCE Inc. (NYSE:BCE) reported revenue of $18.5 billion in 2021, up 3.11% from $17.9 billion in 2020.
4. Charter Communications, Inc. (NASDAQ:CHTR)
Market Cap: $54.46 billion
Charter Communications, Inc. (NASDAQ:CHTR) is an American broadband connectivity company and cable operator serving 41 states with a customer base of more than 32 million through its Spectrum brand. The company provides business-to-business internet access, data networking, business phone services, and video and music entertainment. Spectrum Reach, its advertising sales branch, provides regional businesses with a chance to advertise on cable television networks and advertising platforms in individual and multiple service areas.
Charter Communications, Inc. (NASDAQ:CHTR) ‘s revenue for 2021 was recorded at $51.6 billion, an increase of 7.45% from $48.0 billion in 2020.
Here is what Oakmark Funds specifically said about Charter Communications, Inc. (NASDAQ:CHTR) in its Q3 2022 investor letter:
Charter Communications, Inc. (NASDAQ:CHTR) is also trading like a bank stock due to concerns about broadband subscriber growth and competition. With the stock trading for a high-single-digit P/E on next year’s consensus earnings forecasts, we believe the market’s assumptions are overly punitive. Charter remains the dominant broadband provider in 60% of its footprint, and we expect continued operating profit growth even in a tougher competitive and macro environment.
3. Netflix, Inc. (NASDAQ:NFLX)
Market Cap: $114.28 billion
Netflix, Inc. (NASDAQ:NFLX) is one of the world’s biggest entertainment services, with over 222 million paid subscribers in over 190 countries enjoying TV shows, documentaries, feature films, and mobile games in various genres and languages. Netflix, Inc. (NASDAQ:NFLX) started selling and renting DVDs by mail in 1997. After a year, Netflix, Inc. (NASDAQ:NFLX) focused on the DVD rental business. However, the company launched streaming media and video on demand in 2007 and has become a pioneer in this segment ever since.
Netflix, Inc. (NASDAQ:NFLX) ‘s revenue for 2021 stood at $29.6 billion, a rise of 18.8% YoY from $24.9 billion in 2020.
Here is what Polen Capital has to say about Netflix, Inc. (NASDAQ:NFLX) in its Q3 2022 investor letter:
We have spent months analyzing Netflix, Inc. (NASDAQ:NFLX) ‘s ability to monetize shared passwords, as there are over 100 million households that use, but do not pay for, Netflix. We believe Netflix has outlined reasonable plans for cracking down on password sharing and now expect the company to be able to monetize roughly 30% of that user base in the short term, which has the potential to add billions of dollars to annual free cash flow. In addition, we have analyzed the opportunity for an advertising-supported subscription model, and Netflix has also made meaningful progress in this area by partnering with Microsoft and attracting new digital advertising talent. .… (Click here to read the full text)
2. Comcast Corporation (NASDAQ:CMCSA)
Market Cap: $135.71 billion
Incorporated in 2001, Comcast Corporation (NASDAQ:CMCSA) is a global media and technology conglomerate comprising three major businesses: Comcast Cable, NBCUniversal, and Sky. The company acquired NBC Universal and Sky to broaden its broadcast network. The company offers a wide range of entertainment, news and information, sports, and other content, as well as communication products and services. The organization caters to small and medium-sized businesses, as well as residential and commercial clients, and has a presence in the United States, Europe, and other places.
Comcast Corporation (NASDAQ:CMCSA)’s sales during 2021 stood at $116.3 billion, up 12.3% from $103.5 billion in 2020.
ClearBridge Investments made the following comment about Comcast Corporation (NASDAQ:CMCSA) in its Q3 2022 investor letter:
The Strategy was not completely insulated to macro headwinds and some companies saw tough comparisons after strong pull forwards in demand during the COVID-19 pandemic. Media companies including Comcast Corporation (NASDAQ:CMCSA) were hurt by both factors in the quarter.
After extremely strong broadband growth during the early days of the pandemic, Comcast is now experiencing slowing to negative growth in its broadband business due to new competition and less consumer moving activity along with headwinds on the programming side, where advertising budgets have been more stressed.
1. The Walt Disney Company (NYSE:DIS)
Market Cap: $158.15 billion
The Walt Disney Company (NYSE:DIS) is a global entertainment company that operates a wide range of entertainment outlets. The company is divided into two primary segments: Disney Media and Entertainment Distribution (DMED) and Disney Parks, Experiences, and Products (DPEP). The DMED section includes the company’s global production and film and episodic television programs distribution. The DPEP division encompasses important lines of business, such as parks and experiences, as well as consumer products. The Walt Disney Company (NYSE:DIS) also creates and publishes novels, comic books, and periodicals and sells branded items through retail, online, and wholesale outlets.
The Walt Disney Company (NYSE:DIS) reported revenue of $67.4 billion in the fiscal year 2021, an increase of 3.1% from $65.3 billion in 2020.
Third Point commented on The Walt Disney Company (NYSE:DIS) in a Q3 2022 investor letter,
As disclosed in our Q2 letter, we reinitiated a significant position in The Walt Disney Company (NYSE:DIS) when the company retested its Covid lows earlier this year. At the current price, Disney is trading for little more than the stand-alone value of its Parks business and a mere 15x ’24 “street” consensus. The company remains early in its Direct to Consumer (“DTC”) transition with a leading market position, and yet the current stock price ascribes negligible value to the streaming business. We believe this is due to questions around the terminal economics of streaming, given large losses being generated today at Disney (>$1 billion dollars last quarter) and stagnating margins at peers such as Netflix. On the last earnings call, management highlighted three items that could lead to an inflection in DTC profitability over the next 12 months: a 38% price increase for Disney+ in the US; moderating growth in cash content expense; and an advertising tier for Disney+ launching in two months that can drive additional ARPU given high demand for the Disney brand amongst advertisers.
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