Netflix, Inc. (NASDAQ:NFLX) and Time Warner Inc. (NYSE:TWX) are set to be the biggest beneficiaries of the effects of changing television viewing trends, according to Yahoo! Finance’s Michael Santoli.
The ongoing change is a concern especially for advertising companies who have always tried to attract the young generation who are known to be susceptible to changes, in terms of product usages. According to a research by MoffetNathanson Research, cited by Santoli, television viewing patterns are changing faster than earlier thought, as Americans under the age of 50 turn away from various TV networks.
The research findings were mainly based on Nielsen ratings and only focused on shows watched on television during live broadcasts. The findings did not take into consideration any shows that might have been watched on phones, tablets or after seven of live broadcast.
The results of the research clearly show that most networks are now trying to capture the older demographics with TV sets as opposed to how it sued to be done in the past.
Live sports are expected to be expensive as these remain some of the few programs that are able to attract the young generation to their TV sets. Social Networks such as Facebook Inc. (NASDAQ:FB) are expected to benefit a great deal from the changing patterns in TV watching as more advertisers will use these kinds of platforms to catch the attention of the young generation with their adverts.
Netflix, Inc. (NASDAQ:NFLX) stands a perfect position to gain great deal from the ongoing changes in the television industry as more programmers are expected to shift to video streaming for airing their programs online. Netflix, Inc. (NASDAQ:NFLX) remains a viable solution in the sense that viewers will be able to watch whatever they want whenever they want, are as long as they have internet connected screens.
Streaming outlets are emerging as some of the viable options that advertisers can use to pursue the young generations seen by Time Warner Inc. (NYSE:TWX)’s Warner Brothers selling its streaming rights to Netflix for the upcoming ‘Gotham’, a series inspired by Batman.
Carl Icahn‘s Icahn Capital Lp held 1.76 million shares of Netflix, Inc. (NASDAQ:NFLX) with a reported value of $777.62 million at the end of the second quarter of 2014.
Disclosure: none
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