Bernstein recently hosted its Future of Media Summit, which focused on the future of media, how the landscape is changing and the implications that those changes will have for investors. Analyst Todd Juenger attended the summit and summarized the key themes from the event in a new note.

The traditional U.S. television business is in the middle of a long-term secular decline, Juengersaid, but some media companies won’t be hit as hard as others. Here’s a look at Bernstein’s takeaways from the summit:

• 1. The flow of viewers out of traditional TV and into digital, on-demand services is no longer up for debate; it has been repeatedly verified and is now considered a fact.
• 2. Alphabet Inc GOOGL 0.17%GOOGL 0.17%’s YouTube has emerged as a major revenue generator for original content producers, with Amazon.com, Inc AMZN 0.29%lurking as a major wildcard.
• 3. Presenters who argued that the TV advertising business could be on the upswing centered their arguments on what they consider to be mispriced inventory.
• 4. Cross-platform measurement capabilities are increasing, but there’s a lack of consensus about how close companies such as Nielson N.V. Ordinary Shares NLSN 1.31% and comScore are to accurately measuring audience sizes.
• 5. A focus group of cord-cutters showed no interest in OTT/VMVPD services, including the hypothetical “$15 Entertainment Bundle” that Viacom, Inc. VIAB 0.42%, Discovery Communications Inc. DISCA 0.19% and AMC Networks Inc AMCX 0.23%have reportedly been working on.

Instead of looking at legacy television providers, Juenger said investors should focus on the new wave of on-demand video content providers.

“Among core large cap media companies (which derive most of their cash flow and value from TV networks), we favor…

Click here to continue reading

Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!