Consumers are enjoying entertainment content in new and innovative ways. People are cutting their cords and flocking to streaming services like Netflix (NFLX) to consume content without contracts and large commitments.
Investors that are uncertain about entertainment stocks will need to look no further than these two stocks that have remained stable due to improved subscriber growth and cost cuts:
1. Disney (DIS)
Disney has had a rough start to the year, as the company has struggled amid slumping ESPN subscribers. The stock is down 0.5% on the year, but has been on the uptick over the past 60-day period.
Disney’s diversity has allowed the company to gain stability.
The company’s ESPN platform is in talks with both Facebook (FB) and Amazon (AMZN) to offer more content to consumers. Blockbuster animated movies are also dominating the box office, which is good for Disney, as numerous animated films has been released by the company this year:
- Zootopia
- The Jungle Book
- Finding Dory
Finding Dory was a hit for the company, boasting a $136.2 million opening. The movie tripled its budget so far, with total gross sales of $651 million worldwide.
2. Time Warner (TWX)
Time Warner has broken all of the rules, and has benefited as a result. The company does not have the diverse portfolio of Disney, but they’re innovators that took HBO off of the mainstream to offer standalone service for $15 a month.
The move allowed the fans of Game of Thrones and other hit shows to watch HBO content without a costly cable subscription.
The company’s stock is up 14% on the year. Time Warner was under a hostile takeover bid by billionaire Rupert Murdoch’s Fox network, and since the takeover failed, the company has excelled. The company is focusing on content through HBO and sports programming, too.
Time Warner’s move to offer HBO as a standalone product allowed the company’s hit show, Game of Thrones, to have more than 8.9 million viewers.
