4 Broadcast Radio & TV Stocks To Tap In A Prospering Industry

Lockdowns and shelter-in-place guidelines aimed at flattening the infection curve from coronavirus outbreak have impacted the Zacks Broadcast Radio and Television industry negatively. The increasing rate of cord-cutting and significant delays in production of movies and shows has cast a shadow on the industry’s prospects.

Nonetheless, TEGNA (TGNA - Free Report), Gray Television Inc. (GTN - Free Report), The E.W. Scripps Company (SSP - Free Report), and Entravision Communications Corporation (EVC - Free Report) are a few industry participants set to benefit from their diversified customer offerings which is original, regional, short and suitable for small screens (smartphones and tablets), increased content consumption and improved Internet speed and penetration, and technological advancement.

Industry Description

The Zacks Broadcast Radio and Television industry comprises companies offering entertainment, sports, non-fiction, and musical content over television, radio and digital media platforms. These companies majorly derive revenues from the sale of advertising slots as well as subscriptions.

4 Broadcast Radio and Television Industry Trends to Watch Out For

Shift in Consumer Preference a Key Catalyst: To adapt to the changes in the industry, companies like Fox Corporation (FOXA - Free Report), ViacomCBS, and Discovery (DISCA - Free Report) are coming up with varied content for over-the-top (OTT) services in addition to linear TV. Additionally, they are adding OTT services to their content portfolio. This is helping companies easily reach a global audience and expand their international user base. This, in turn, attracts advertisers to their platforms, thereby boosting ad revenues. Moreover, the use of services to help advertisers measure their ROI and enhance their use cases is expected to benefit advertisers and industry participants. Also, major leagues and events such as NFL, NHL, Olympics, European Games, EPL and elections attract significant ad dollars. However, cancellation or postponement of sports events due to the coronavirus outbreak is a major concern.

Increased Digital Viewing Aids Content Demand: Many industry participants, who are either launching their own OTT services or acquiring other OTT services, are banking on user insights to deliver the right content. Increased digital viewing is making consumer data easily available to companies, thereby allowing them to apply AI and machine learning techniques to create/procure targeted content. The move not only boosts user engagement but also lets industry participants raise prices of their services at appropriate time without the fear of losing subscribers.

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