🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Stocks

Raymond James: Hulu/Spotify bundle needs to catch on in media

Published 09/11/2017, 01:53 PM
© Reuters.  Raymond James: Hulu/Spotify bundle needs to catch on in media
DIS
-
SIRI
-
CMCSA
-
TFCF
-
TWX
-
NFLX
-
P
-
TMUS
-
TFCFA
-
  • Raymond James notes that a bundle created for college students by Spotify (Private:MUSIC) and Hulu (CMCSA -1.6%, DIS, FOX +0.8%, FOXA +0.8%, TWX +0.4%) will likely be at the forefront of a trend, with subscription services sprouting like weeds.
  • The two companies will offer services that would cost $13/month on a stand-alone basis for just $4.99/month together, in a bundling move that's "frankly overdue" for media companies, says analyst Justin Patterson.
  • Fragmentation among subscription media services is growing, and marketing them isn't cheap, he notes. And Spotify and Hulu can add customers through the deal since there's modest overlap for the two among millennials.
  • Looking at other stocks, he notes Netflix (NFLX +3%) already struck a deal with T-Mobile (TMUS +0.2%) and so technically it's part of a bundle of sorts (not quite a content bundle like Spotify/Hulu), but that Netflix's competitive position is secure. And a relationship with Sirius XM (SIRI +0.8%) is a potential catalyst for Pandora (P -2.4%) as customers await possible bundles there.
  • Now read: Disney 's Stock: Short-Term Challenges


Original article

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.