Currently, most people watch TV through either Cable or Satellite. It gives these distribution companies lots of power and stable cash flow. But the time has arrived for a big change. The future TV will most likely through streaming, either directly from the content provider (such as sports franchise) or a content distributor (such as netflix). You can choose your own news and sports provider through its own streaming. If you are a New York sports fan, you can sing up with MSG and get live streaming directly from MSG. If you like CNN, you should be able to get streaming from CNN. For movies and shows, most likely they will go through a distributor. The power will shift to content provider, that's no question about it.
Disney, MSG, Lionsgate and etc will benefit from the trend. The margin for distributor like netflix will be thin because of the competition and very low barrier for entry. Currently, my favorite picks are MSG and Lionsgate (LGF). I will write about LGF in another blog.
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