Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche

CBS (NYSE: CBS)

Opportunities

Can Viacom Save CBS from Oblivion?

My guess is that Redstone wants to combine Viacom and CBS’s streaming video services to generate more cash from subscriptions.

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Opportunities

Is CBS (CBS) the Future of Television?

First, CBS is an old-fashioned broadcast network with a historic brand that is declining fast. Second CBS is a digital video streaming service CBS All Access with 2.5 million viewers.

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Market Commentary

Threats to Netflix (NFLX)

In particular, Amazon had 30.8 million video-streaming subscribers in America in 2017. Impressively Statista projects that number to grow to 46.3 million U.S. subscribers by 2020.

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The Death Spiral

CBS is dying while Netflix is Booming

The suspicion that nobody besides aging Baby Boomers is watching network TV is being provided correct. CBS also has serious problems because it had one only hit; The Amazing Race, and only one scripted show that experienced a ratings increase in the under 50 demographic Mom.

The ratings indicate that CBS is no longer capable of sustaining an audience. Investors will have to ask if CBS is sustainable or viable business. The ratings indicate it might not be.

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Opportunities

Is the WWE really making money?

That makes WWE a pretty good metric for other traditional entertainment companies that are trying to transition to digital-content providers. We might be seeing the future of companies as diverse as TV networks like CBS (NYSE: CBS) and movie studios like Lionsgate Entertainment Group (NYSE: LGF.A) at WWE.

The advantages of this business model are that the WWE can generate cash flow without having to pander to advertisers.

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The Junk Pile

Are CBS and Viacom Making Money?

All of CBS’s renewed scripted dramas experienced a double-digit ratings collapse among 18 to 49-year-olds. Three of them; Scorpion, NCIS: Los Angeles, and Criminal Minds, lost more than one-quarter of their audience between 2017 and 2018, ratings indicate.

These figures spell disaster for CBS because the 18 to 49 year old demographic includes most of the population including; Generation Z (18-19 age group), Millennials (age 20 through 35) and Generation X (age 36 through 50). Since are around 79.41 million Millennials, 65.72 million Generation Xers, and 73.51 million members of Generation Z, according to Knoema, it appears that CBS has lost the entertainment wars badly.

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The Death Spiral

Is CBS Making Money?

Acquiring CBS makes a lot of sense for the Everything Store. Owning CBS would give Amazon; a library of full popular shows, the TV and video rights to the Star Trek franchise, a news department, production facilities including a studio in Los Angeles, a sports department, and the right to show NFL games on Amazon Prime. Trump would hate that because it will probably end CBS’s gentle treatment of him.

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Hyperloop

Is Musk’s “New York to Washington DC Hyperloop a Joke?”

Strangely enough Musk’s tunnel is technologically feasible. Hyperloop One is already testing a full-sized Hyperloop in North Las Vegas. It would be a fairly simple; but expensive, matter to bore new tunnels under Washington, New York and Philadelphia – or repurpose some older tunnels.

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The Death Spiral

WWE shows why Old Media is dying

Investors need to pay attention to Matt Hardy, because his success might be repeated by any performer using open sourced media to totally disrupt the business. This professional wrestler from North Carolina might be showing us the future of entertainment.

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The Death Spiral

Will Falling NFL Ratings Destroy CBS?

It looks as if two entire generations; the 18-35 year-old Millennials and the 35-50 year-old Generation Xers, are tuning out network TV; or at least CBS. One has to wonder how long the company can survive with older viewers dying off, and younger couch potatoes tuning out.

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