Over the past thirty years that my wife and I have known each other, we have always enjoyed watching our favorite television programs together. Fortunately for us, we have about the same tastes in shows. With all of the steaming options available today--and so-called "Prestige TV--it is an endeavor to find what is going to be on our screen next. So, my job is to do some research to find the next series or limited series that will appeal to both of us. I have to stay on my toes with this task, because if I fail to deliver, my wife will tune in to her default option, the Hallmark Channel. I have nothing against these programs, but it seems to me that all of their movies have essentially the same plot, with the main variable being who Lacey Chabert, Hallmark's ridiculously cute perennial heroine, will fall in love with this time. I guess my chromosomes are showing, as Hallmark fare seems to have the greatest appeal for the female audience.
Thinking back on how our viewing habits have changed, I realize that the only scripted show we continue to watch on traditional network television is Blue Bloods, and that show is in its final season. My wife has been talking about how we should "cut the cord" with our cable tv service, and I know a lot of other people who are thinking the same thing (if they have not severed it already). The real game-changer here, poised to push us over the edge, is YouTube TV, which seems to offer just about everything that cable delivers. This cord-cutting trend has had me questioning our small position in Comcast (CMCSA, $43). I don't like to invest in companies that are losing customers. However, Comcast also owns NBCUniversal, so they have quite a collection of assets under their roof. A major investment thesis of mine involves content, and the demand for programming to put on all of these channels and services. I have held this view for many years, and I'll have to admit that it hasn't played out as I had expected. To further make the point, consider Disney (DIS, $123). They own everything from Snow White to Frozen, and that means all of the merchandise based on those films (I have a granddaughter who loves to sing Let it Go, almost to the point sometimes that I could use a Valium). Comcast and Disney are each up just 7% over the past five years, underperforming the S&P 500, but I continue to think that the market is not properly valuing those assets. Consider that Apple (AAPL, $171) has a market capitalization of $2.6 trillion, while Disney's market capitalization is $225 billion. Is Apple really worth ten times more than Disney? I don't think Apple is worth too much--I think Disney is worth too little.
I tried recently explaining to a young person how television watching has changed in my lifetime. I started out by noting that what used to come over the airwaves (television) now comes through a wire, and what used to come through a wire (telephone service) now comes over the airwaves. I guess I should have started my story with something more attention-grabbing for such a young mind. Maybe my contemporaries will appreciate the nostalgia of a rooftop television antenna and the four channels we had when I was a lad. My favorite business story, however, is the transformation of Netflix. Do you remember their mail-order business? Those red envelopes? Now Netflix is a media behemoth with plenty of its own content. I remember once on one of my many trips to rent movies at Blockbuster (especially the one in Destin, just across the highway from our condominium) I wondered what would happen if Blockbuster could deliver their movies over cable, saving us all our trips to their locations. I wonder if Blockbuster even considered buying Netflix. Actually, Netflix tried selling itself to Blockbuster at one time, but the latter company wanted nothing to do with it. This is what we can chalk up to "a failure of imagination."
If you are looking for the next bit of quality programming to watch, I have found that Internet Movie Database (IMDb) is my indispensable resource. I have the app, IMDb, on my iPhone, and I consult it constantly. This will tell you everything you might want to know about any series, movie, performer, etc. It has certainly helped me pull my wife out of the Hallmark quicksand.
I imagine that someday soon I'll be hauling our cable boxes off to the Comcast store to complete the cord-cutting--and get the credit I am due for surrendering the equipment. If you might be following in my footsteps, here's a tip: I always go to the Comcast location in Germantown. It is worth the extra drive, because the location closest to my house always seems to be filled with people who are trying to pay their bills to avoid a service shut-off. Apparently, the good people of Germantown pay their bills the old-fashioned way--on time.
For now, my wife and I seem to be set in our new ways and content with all of our streaming options. But, if you notice that we are eating 5:30 dinner at Piccadilly and rushing home to catch Wheel of Fortune every night, it will probably be time to call the Intake Team at Trezevant Manor. And one more thing: if you have cut the cord or are thinking about doing so, please send me an email about your thoughts and experiences at my email address below.
Life is short. Get busy.
Jim
Disclosure/Disclaimer: My family members and/or I own shares of CMCSA, DIS, and AAPL. Individual stocks are mentioned here for the sole purpose of illustrating investment concepts, and nothing stated here should be construed as the advice to buy or sell any security.
Copyright 2024 James Brinkley Taylor, Jr.
I welcome your thoughts, questions and feedback, so please email me here:
jbrinkleytaylor@gmail.com
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