If you are a believer, Walt Disney is making the right move when it comes to the consolidation of premium TV content -- buying up Fox media assets. Here is added evidence that Disney is headed in the right direction.
More live-streaming video competition is coming from increasingly established media companies that aren’t going away: Think Twitter.
Twitter got a major upgrade from Doug Anmuth, media analyst at JP Morgan, because of what he believes will be steady revenue growth, partly attributable to leveraging video and live streaming. Anmuth expects the social media company to grow its daily active user base by 10% and earn a 8% increase in advertising revenue.
On this news, Twitter’s stock was up sharply -- 11% on Monday -- to $24.68. Year-over-year, the stock is up 35%. Since April 25, it is 68% higher. Still, Twitter’s stock is down from its $69 price in 2014.
Now, we have heard some of this blue-sky stuff before -- especially with social media companies (but not necessarily Twitter). Still, Twitter doesn’t seem to be going away -- even with its stagnant user base of 68 million in the U.S. and 328 million globally.
Video-wise, a year ago, Twitter had NFL streaming video for Thursday night games. Now Amazon has that package.
Twitter has had live-streaming deals with LiveNation, the NFL, MLB, the PGA Tour and WNBA, along with a new 24/7 sport channel, Stadium. So its users have had a taste of what might be coming.
Do we think Twitter will rise to the favorability that Facebook, Google, Amazon, or even Netflix enjoy? Not so fast.
The fact is that Twitter’s main social media function is still hanging around -- being used, promoted and mulled over when it comes to daily tweets by celebrities, and of course, big-name politicians.
And there are all those big media mergers happening: Disney-Fox, AT&T/Time Warner and Sinclair/Tribune. Is Twitter getting caught up in it?
Whatever it is, Twitter still needs to find the right tools to connect with video. More importantly, it also must continue to avoid nefarious and disturbing ad content that is automated and unchecked.
After that, any sports TV announcer might say: Let’s go the video.