Foxy Deal For News Corp. Helps Drive Stock To $20

News Corp. is Glee-ful

News Corp’s 20th Century Fox Studios recently signed a deal with NCR’s Blockbuster Express to delay DVD rentals by 28 days for new releases. This follows a similar deal that NCR signed with Universal last month.

Fox studios signed similar deals with Netflix earlier this year and Sony and Time Warner have also announced similar deals with distributors. At its root, studios are trying to protect potential sales from new releases in exchange for offering content to distributors like NCR or Netflix.

For News Corp, we estimate that Fox Studios constitutes about 18% of the stock and majority of that value is derived from DVD sales.

We currently have a $19.91 price estimate for News Corp, which is about 30% ahead of the current market price.

Special Offer:? Once a month, Jim Oberweis updates his model portfolio of small cap growth stocks that often return 1,000% and more–a hit parade of monster stock tickers like HANS, BIDU, NTES, FMCN, CTRP, CHS, LULU. His readers bought Netflix in 2003 at $13 per share. What’s new for December and yearend? Click here for the December Oberweis Report.

Rentals, Streaming Replacing DVD Sales

As a result of increased digital distribution, a shift towards rentals and streaming content and increased piracy, the global demand for DVDs has been declining. Additionally, lackluster adoption of the new Blu-Ray disc format has not offset DVD declines.

According to a research report published by the Strategy Analytics earlier this year, global DVD sales decreased by 9% in 2009 amounting to $33 billion and are expected to further decline by 12% in 2010. While global Blu-Ray sales are predicted to reach $6.50 in 2010, they are not expected to offset drop in DVD sales.

New Distribution Necessary

News Corp must find new ways of monetizing its content in view of declining DVD sales. More digital distribution deals with online platforms like Netflix, Hulu etc. as well as pay-per-view and on-demand business are likely to help.

If DVDs sold per household drop to 5 per year by the end of Trefis forecast period, our price estimate can see a downside of 5%. We did not factor in additional pricing pressure on DVDs due to reduced demand in this scenario but include the chart above for you to make your own estimates.

You can see the complete $19.91 Trefis price estimate for News Corp’s stock here.

Like our charts? Embed them in your own posts using the Trefis Wordpress Plugin.

2010-12-03 17:36:00

This entry passed through the Full-Text RSS service — if this is your content and you're reading it on someone else's site, please read our FAQ page at fivefilters.org/content-only/faq.php
Five Filters featured article: Beyond Hiroshima - The Non-Reporting of Falluja's Cancer Catastrophe.

View the original article here

Ton-up Younus helps Pakistan draw first Test

Younis Khan raises his bat and helmet as he celebrates after scoring a century 100 runs against South Africa. PHOTO: AFP

DUBAI:?Younus Khan scored a resolute century as Pakistan reached 284-3 at tea on the fifth and final day of the first Test match against South Africa on Tuesday.

The 32-year-old batsman reached his 17th Test century with a towering six off spinner Johan Botha three overs before the tea interval to further Pakistan’s fight. They still need to bat out 29 overs to draw or score 167 for an unlikely win.

Pakistan, set a daunting 451-run target, owed their fight for survival to Younus who is playing his first Test since July last year because of an indefinite ban and differences with fellow players.

Younis, 102 at tea, was ably supported by skipper Misbah-ul-Haq, unbeaten on 52, as the pair added 127 runs for an unbroken fourth wicket stand– a new record in Pakistan-South Africa Test matches.

The previous best of 119 was between Jacques Kallis and Hashim Amla at Johannesburg in 2007.

Younis has so far hit nine boundaries and two sixes during his 191-ball knock, his third century against South Africa.

Misbah, who also completed his half-century with a six off Botha, has so far hit six boundaries and a six off 127-balls and together with Younis frustrated the South Africans who managed only Azhar Ali’s wicket in the two sessions.

Ali scored 63 before he was bowled by spinner Paul Harris before lunch, but not before adding 82 for the third wicket with Younis to keep Pakistan’s hopes of saving the Test alive.

Ali, who made 56 in the first innings, hit seven boundaries during his dour 150-ball knock.

With scant assistance from the pitch, South Africa also fell short on fielding as they dropped three crucial catches – two off Younis and one off Misbah, hurting their chances of taking the lead in the two-Test series.

Resuming at 109-2, Pakistan had a lucky escape in the fourth over of the day when Younis, on 16, edged paceman Dale Steyn, but wicket-keeper Mark Boucher failed to hold a regulation catch towards his right.

Younis also had luck at 73 when Kallis failed to hold a difficult chance in the slips off Steyn.

Misbah was also lucky when Hashim Amla dropped a bat-pad edge off Johan Botha at short-leg when the batsman had made eight.

This entry passed through the Full-Text RSS service — if this is your content and you're reading it on someone else's site, please read our FAQ page at fivefilters.org/content-only/faq.php
Five Filters featured article: Beyond Hiroshima - The Non-Reporting of Falluja's Cancer Catastrophe.

View the original article here