Three stocks to watch as media landscape goes wireless

These traditional media companies are adapting their business models to changing consumer habits.

Vikram Barhat 8 November, 2016 | 6:00PM

The US$85-billion acquisition of  Time Warner (TWX) by  AT&T (T) announced at the end of October has put the spotlight on the media industry. Although subject to regulatory approval, the deal signals a seismic shift in the media industry, which is evolving to adapt to emerging technology trends, viewing patterns and growing competition from streaming media titans such as  Netflix (NFLX) and  Amazon (AMZN).

The shake-up in the industry could create attractive buying opportunities for investors as media companies find creative ways to attract new customers, coax existing subscribers to stay, and regain millennial cord-cutters. With new-age media companies rapidly growing their content-making muscle, traditional entertainment powerhouses are quickly adapting to the new landscape and shifting trends in content consumption.

Lacking neither in will nor wherewithal, legacy media enterprises are already moulding and enhancing their business models as per changing viewing habits of consumers. They own vast and valuable catalogues of content and media networks, and are nimble enough to participate in the industry's digital transformation. They also have robust fundamentals and strategic business mix that act as a bulwark against competitive pressures, according to Morningstar equity research.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Amazon.com Inc3,220.08 USD1.64
AT&T Inc28.87 USD0.42
Netflix Inc504.58 USD2.83
The Walt Disney Co149.44 USD0.97
Twitter Inc46.67 USD0.34

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a Toronto-based financial writer specializing in investing, stock markets, personal finance and other areas of the financial services industry. He also writes for CNBC, BBC, The Globe and Mail, and Toronto Star.

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