RT Ed Ludlow (@EdLudlow)Powerhouse panel alert 🚨Gaming, streaming, and content creation all collide at Bloomberg Screentime. Thrilled to moderate a convo with Pokimane (Imane Anys) @pokimanelol and Twitch CEO Dan Clancy — diving into communities, trends, collabs, and IRL shifts.October 9 • Los Angeles @BloombergLiveThis lineup is straight POG 🙌 ...

Company Leadership Changes - Founder Daniel Ek is stepping down as CEO to become the executive chair, with Gustav Söderström and Alex Norström appointed as co-CEOs effective January 1 [1][2] - The leadership transition formalizes the operational structure that has been in place since 2023, where Söderström and Norström have been leading strategic development and operational execution [2] Executive Chair Role - Ek emphasized that his new role as executive chair will not be ceremonial, as is often perceived in the US, but will involve active participation in the business and engagement with stakeholders [3] - The role will focus on long-term strategic goals and maintaining growth opportunities [3] Growth Opportunities - Ek identified significant growth potential in regions like Asia and Africa, where streaming is not yet widely adopted, as well as advancements in technology such as artificial intelligence [4] - The company aims to remain forward-looking and focused on long-term objectives [4] Company Overview - Since its founding nearly two decades ago, Spotify has transformed the music industry, boasting over 700 million subscribers and a library that includes more than 100 million songs, 7 million podcast titles, and 350,000 audiobooks [5]

Group 1: AI Strategy and Competition - Apple is at risk of falling behind in the artificial intelligence race due to a lack of bold moves while competitors invest heavily in AI [1][2] - The company has focused on incremental changes to the iPhone rather than developing proprietary AI models, which is essential for long-term success [2][4] - Ives criticized Apple's app ecosystem model, suggesting that merely collecting fees will not suffice in the competitive landscape [3] Group 2: Stock Performance and Market Outlook - Ives projects that Apple's stock could reach $270–$280 based on its current trajectory, but true outperformance requires integrating proprietary AI into devices [4] - Despite AI challenges, the iPhone 17 is experiencing strong demand, particularly in China and India, leading to a raised stock target of $310 [7] - Apple shares closed at $254.43, down 0.40%, with a further decline of 0.38% overnight, although the stock shows favorable price trends in the short, medium, and long terms [8] Group 3: Internal Culture and Talent Retention - Ives criticized Apple's internal culture and M&A strategy, labeling its innovation as "lackluster" and highlighting a significant strategic mistake in not acquiring Netflix [5][6] - The company is struggling to retain top talent, with developers moving to competitors like OpenAI and Palantir, indicating a need for innovation through acquisitions [6]

Group 1 - The Walt Disney Company is recognized as one of the most undervalued stocks in the Dow, with analysts recommending it for investment [1][4] - Disney+ has launched significant content, including the new "Lilo & Stitch" movie and the series "Marvel Zombies," which supports subscriber growth and reinforces Disney's streaming leadership [2][4] - The company is diversifying revenue streams through collaborations, such as the Harry Lambert for Zara x Disney collection, which showcases iconic characters in pop-up events across multiple countries [3][4] Group 2 - Under the leadership of CEO Bob Iger and CFO Hugh Johnston, Disney is implementing a growth-focused strategy aimed at increasing profitability, including initiatives like a standalone ESPN app and Disney Cruise Line expansions [4] - Disney has raised its full-year guidance, targeting double-digit EPS growth, with international market expansion being a key focus for long-term growth [4] - The company has taken a cautious approach to brand management, temporarily suspending "Jimmy Kimmel Live!" due to content timing concerns, reflecting its commitment to maintaining a positive public image [5]

Core Viewpoint - Needham Securities analysts propose that Disney should cease broadcasting on traditional platforms and transition all content to streaming services like Hulu and the ABC app, which would mitigate regulatory risks and allow for better valuation of its growing sectors [2][3][6]. Financial Implications - Shutting down ABC without selling the broadcast licenses could result in a write-off of approximately $1.7 billion to $2.7 billion in free spectrum value and an annual loss of about $1.4 billion in free cash flow, equating to a total value loss of around $8.3 billion based on current TV trading comps [4]. - Despite these losses, the analysts argue that the value destruction would be minimal, representing only a small percentage of Disney's $204 billion market capitalization, and would be a one-time event that Wall Street would likely add back [5]. Audience Reach and Market Dynamics - ABC's current viewership is low, averaging only 2.4 million viewers in prime time, and the network generates about $4 billion in revenues, which is an 11% decline from 2024 [5]. - Transitioning to streaming could enhance Disney's valuation multiples by 40 to 60 basis points annually over the next decade, potentially adding 10% more value for shareholders [6]. Regulatory Environment - The proposal is driven by the need to avoid political distractions and regulatory headaches, especially as the media landscape is rapidly evolving due to generative artificial intelligence [7]. - While broadcast ratings are declining, they still provide a significant reach to a broad audience, which is crucial for major sports leagues that rely on broadcast to attract casual fans [9]. Industry Context - Recent lucrative contracts in sports broadcasting, such as the NBA's and NFL's, highlight the importance of having a broadcast component for media companies to secure valuable programming rights [10][11]. - The potential for expanded regulatory power by the FCC poses a risk for traditional media companies, as it could complicate their operations if they move away from broadcast [12][13]. Historical Significance - Disney's historical connection with ABC dates back to the 1950s, and the legacy of this relationship may influence current decision-making regarding broadcasting [14][16]. - The upcoming transition in leadership at Disney, with a potential successor to Bob Iger, could also impact strategic decisions related to broadcasting and streaming [17][18].

Group 1 - The core viewpoint is that Netflix has raised its full-year revenue guidance while expressing concerns about declining operating margins due to increased content spending [2][3] - In Q2 2025, Netflix reported sales of $11.08 billion, reflecting a 15.9% year-over-year increase, which met analyst expectations [2] - The company raised its full-year revenue guidance to $45 billion at the midpoint, up from a previous forecast of $44 billion [2] Group 2 - Netflix anticipates lower operating margins in the second half of 2025 compared to the first half, primarily due to increased content amortization and sales and marketing costs [3] - The company is heavily investing in content, including major original productions and licensed content, which is supported by substantial marketing expenses [3] - As of September 09, 2025, Netflix's weekly performance dropped by 2.28%, but it has a six-month performance of 23.51% and a consensus upside potential of 17.95% [4]

Group 1: Media Landscape and Company Strategies - The refusal of Sinclair and NextStar to air "Jimmy Kimmel Live" on their ABC affiliates raises questions about Disney's future in linear TV, with suggestions that Disney might consider divesting from ABC entirely [1][4] - The situation with Kimmel highlights the challenges for traditional media companies, as content is increasingly pushed towards streaming platforms, which could harm the long-term viability of broadcast television [7][10] - The ongoing trend of cord-cutting and the shift of advertising to streaming platforms are significant headwinds for broadcast networks, making consolidation within the industry a potential necessity for survival [9][14] Group 2: Consolidation and Future of Streaming Services - Industry experts predict that more media companies will need to consolidate due to the structural challenges in the market, with a focus on creating larger, more competitive streaming services [14][18] - The integration of Hulu into Disney Plus is anticipated, indicating a trend towards fewer standalone streaming services as companies seek to streamline operations and enhance scale [15][16] - The potential acquisition of Warner Brothers by Paramount is under scrutiny, with concerns about the financial feasibility of such a deal given the current market conditions [20][22] Group 3: TikTok and Competitive Landscape - The recent joint venture involving TikTok suggests that the platform will maintain its existing user experience and algorithm, countering expectations of significant changes following the deal [26][28] - The partnership is seen as beneficial for both TikTok and its parent company ByteDance, while also indicating that competitors like Meta and Snapchat will not see a reduction in competition from TikTok [28][29]

Group 1 - Netflix, Inc. has been upgraded to a Buy rating by Loop Capital analyst Alan Gould, with a new price target of $1,350 per share, up from $1,150, indicating an 11% upside potential [1][2] - The stock has gained 37% year-to-date as of September 23, reflecting strong market performance [2] - Gould acknowledged his previous downgrade of Netflix as a mistake, citing strong engagement in Q3 and a robust content slate for Q4 as key factors for the upgrade [2][3] Group 2 - The analyst raised third-quarter estimates for Netflix, highlighting its dominant position in the entertainment industry despite competition [3] - Long-term margin assumptions have increased, with each dollar of content generating more revenue, leading to higher earnings and free cash flow [2]

Group 1: Anthropic and Legal Settlement - A federal judge has given preliminary approval for Anthropic's offer to pay $1.5 billion to settle a class action lawsuit with a group of authors alleging illegal downloading of books from pirated databases [1][2] Group 2: Six Flags and Activist Investor - Shares of Six Flags have increased following reports that activist investor Land and Buildings Investment Management plans to pressure the company to spin off its real estate holdings and implement changes to boost share price, holding approximately a 2% stake in the company [2][3] - Six Flags' shares have declined more than 50% so far this year [3] Group 3: U.S. Chip Manufacturing Plan - The White House is considering a new plan to reduce U.S. dependence on overseas chips, requiring chip companies to manufacture an equal number of chips domestically as they import from overseas, or face tariffs [3] Group 4: SEC Investigation into Crypto Companies - Federal regulators, including the SEC, are investigating unusual trading patterns in companies identifying as crypto treasuries, reaching out to over 200 companies regarding high trading volumes and stock price gains that may violate fair disclosure regulations [4] Group 5: Netflix and Major League Baseball - Netflix has signed a deal to stream Major League Baseball's opening day game between the New York Yankees and San Francisco Giants next year as part of a three-year agreement, which will also include the home run derby and other special regular season games [4][5]

Company Overview - Paramount Skydance Corporation (PSKY) has a market cap of $12.9 billion and operates in film, television, streaming, and interactive content [1] - The company is classified as a "large-cap" stock, with notable brands including Paramount Pictures, CBS, Nickelodeon, MTV, BET, Comedy Central, Showtime, Pluto TV, and Paramount+ [2] Stock Performance - PSKY shares have decreased over 9% from their 52-week high of $20.86, but have increased by 55.3% over the past three months, outperforming the S&P 500 Index's 8.2% gain [3] - Year-to-date, PSKY stock is up 81.5%, significantly surpassing the S&P 500's 12.1% rise, and has risen 79.9% over the past 52 weeks compared to the S&P 500's 15.2% return [4] Financial Results - Following Q2 2025 results on July 31, PSKY shares rose 3.5% as adjusted EPS of $0.46 exceeded consensus estimates [5] - Direct-to-Consumer (DTC) revenues increased by 14.9% to $2.16 billion, with subscription revenues up 21.8% and Paramount+ reaching 77.7 million subscribers, alongside a 9% growth in ARPU [5] - DTC adjusted OIBDA improved by $131 million, supported by strong theatrical performance from "Mission: Impossible – The Final Reckoning," which grossed over $590 million globally, and SG&A cost savings of 11.3% [5] Merger Activity - On August 7, Skydance Media and Paramount Global completed their merger to form Paramount, a Skydance Corporation (PSKY), combining Paramount's legacy content and distribution with Skydance's production and technology expertise [6]