Trefis Weekly Notes: Media, Semis & Telecom

September 23rd, 2011 by Trefis Team
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Below we present some of the key events and news from the past week concerning telecom, media and semiconductor industry. More specifically, these updates pertain to Netflix (NASDA:NFLX), Sirius XM (NASDAQ:SIRI), Pandora (NYSE:P), Disney (NYSE:DIS), Nvidia (NASDAQ:NVDA), AMD (NYSE:AMD), Dish Network (NASDAQ:DISH), Comcast (NASDAQ:CMCSA) and Time Warner Cable (NYSE:TWC).

New Developments

Netflix

This past Sunday, Netflix’s CEO Reed Hastings apologized to the Netflix community for not being communicative enough about Netflix’s service restructuring. He also added the Netflix will be re-branding its DVD business as Qwikster. Following this news, the company’s stock took another dip. [1]  [2] Adding fuel to the uncertainty around Netflix’s stock, an analyst from Wedbush Securities has speculated that Netflix’s decision to separate DVD business could open doors for potential acquisition of the company by Amazon. [3]

On the competition side, Netflix’s rival Hulu has crossed 1 million paying subscriber mark, reports Reuters. There is still a long way for Hulu to go, but it seems like the service achieved this target sooner than expected. [4]

The week has not all been bad. On the positive side, Netflix has expanded its licensing deal with Discovery Communications. We should see a lot more developments from Netflix in this direction. [5] Additionally Netflix has announced integration with Facebook, for users outside of the U.S. These users will now be able to see what their friends on Facebook are watching via Netflix and share their own viewing habits. [6]

Sirius XM

According to J.D. Power and Associates, the new retail vehicle sales in September are likely to hit the highest level since April. Amidst week economy, this comes as is a small positive for Sirius XM. [7]

Pandora

Pandora revealed that it has redesigned its website to make it faster and give it a better look for its users based on feedback collected over the years. [8] We should expect more improvements of this nature as competition has become more intense than ever, especially with Clear Channel launching its Pandora-like app.

Additionally the company announced that it will be hosting Kaufman Bros. Investor Bus Tour on Sept 29, 2011 [9]

Disney

Disney reaped tremendous box-office success with its 3D remake of The Lion King on opening weekend, which was first released 17 years ago. [10] The company also announced that it will be working with Cameron’s Lightstorm Entertainment and Fox to create blockbuster Avatar themed lands in its theme parks. [11]

Nvidia

Nvidia has revealed that its quad-core mobile chip will contain an extra 5th core to improve power consumption. These mobile chips will appear in the market by year-end. [12]
AMD

AMD announced couple of management changes this week. This includes AMD’s products group chief leaving and the company recruiting new executive as corporate vice president and general manager of commercial business division. [13] In addition to this, the company also announced that it will be holding financial analyst day on Feb 2 2012. [14]

Dish Network

Dish Network is launching its Blockbuster streaming service today in an event titled “A stream come true” in San Francisco. [15]

Comcast

According to a report, Microsoft may be in talks with Comcast and Verizon to allow their subscribers to navigate through pay-TV content using Xbox. [16]

Earnings Schedule Announced

Time Warner Cable

Time Warner Cable has announced that it will be reporting its Q3 2011 results on Oct 27 2011 before the market opens. [17]

Notes:
  1. An Explanation and Some Reflections, Netflix’s Blog, Sept 18 2011 [↩]
  2. Market Signals Big Netflix Swings Ahead, The Wall Street Journal, Sept 20 2011 [↩]
  3. Netflix split to set up Amazon streaming merger?, ZDNet, Sept 22 2011 [↩]
  4. Hulu has more than 1 million paying subscribers: CEO, Reuters, Sept 21 2011 [↩]
  5. Netflix Expands Its Discovery Pact, The Wall Street Journal, Sept 22 2011 [↩]
  6. Watch this now: Netflix and Facebook, Netflix’s Blog, Sept 22 2011 [↩]
  7. September Auto Sales Upbeat: J.D. Power and Associates, Satellite Radio Playground, Sept 22 2011 [↩]
  8. Pandora Unveils Redesigned Site to All Listeners, Pandora Press Release, Sept 21 2011 [↩]
  9. PANDORA® to Host Kaufman Bros. Investor Bus Tour, Pandora Press Release, Sept 22 2011 [↩]
  10. Box office: ‘The Lion King’ roars again in 3-D, Los Angeles Times, Sept 19 2011 [↩]
  11. DISNEY, FOX AND JAMES CAMERON TO BRING AVATAR TO LIFE AT DISNEY PARK, Disney Press Release, Sept 20 2011 [↩]
  12. Nvidia Quad-Core Chip Includes A Fifth, Low-Power Core, The Wall Street Journal, Sept 20 2011 [↩]
  13. AMD Announces Executive Changes, AMD Press Release, Sept 22 2011 [↩]
  14. AMD Announces Financial Analyst Day, AMD Press Release, Sept 20 2011 [↩]
  15. Dish Network to unveil Blockbuster streaming video service Friday, FierceCable, Sept 19 2011 [↩]
  16. Microsoft may team with Comcast, Verizon to deliver video through Xbox, FierceCable, Sept 20 2011 [↩]
  17. Time Warner Cable to Report 2011 Third-Quarter Results, Time Warner Cable Press Release, Sept 20 2011 [↩]
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