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I sold my holding at 64.5p.
@RS2002
Didn't you read the NYC article. Studios aren't stupid. They know they will lose money in the short term. They're in for the long game to build their user base.
Disney + have around 75 million subscribers, paying roughly $6 a month. That is constant income stream of $450m a month!!
This is a long term strategy from WB.
Haven't you heard, they've committed the whole of 2021 to see what happens. It's like their year long clinical trial.
I don't care what anyone says. If I have to pay £10-15 to get a subscription to HBO max so I can watch Matrix 4, Wonder Woman 2, etc, then I will fork out for it. It costs far less than a single trip to the Cinema for 2 costs around £40.
That's the bet they're making and I kind of see the method to their apparent madness.
Ultimately, people pay for content because it's relatively cheap and one of life's simple pleasures.
Doesn't matter if they're correct. It's their decision. Their business. Their company.
Netflix and Amazon Prime have shown them the way.
We're in the advent of fibre optic broadband, cost effective entertainment hardware, HDMI 2.1 specs etc etc.
Streaming is the future and Cinemas will likely retreat to being a niche pastime for special occasions, rather than the de facto way to consume new content.
I think that is the strategy Studios are pursuing going forward. They know this means the death knell for cinemas as we know it and I think that's the point.
@RS2002
I think the CEOs of all these studios pursuing streaming as the way forward know more about this than any of us.
And clearly, the couldn't give a 5h1t
Unfortunately, they have no leverage.
They haven't been open all year and their 2021 isn't looking like it will get back to normal, at least until Q3/Q4 at the earliest.
The studios pushing their streaming platforms and already making decisions to favor their streaming platforms have all the cards in their hands.
If studios were concerned about losses from theaters, they wouldn't be pursuing streaming in the first place.
Here are a few key tidbits as to why WB are pursuing this root...
HBO Max subscribers will receive instant access to big-budget extravaganzas like:
a Suicide Squad sequel
Godzilla vs. Kong
Dune
The Matrix 4
Wonder Woman 2
Conjuring
Space Jam: A New Legacy
a Sopranos prequel called The Many Saints of Newark
When asked why they are going down this root, they said..
"It’s not clear that full normal will return even well into the fourth quarter of next year,” Mr. Emmerich said in a separate interview. “The epidemiologists who have been consulting with the company have painted a cautious picture."
WB are planning this for the whole of 2021 only and have not said they would go beyond that year however....
"Many people in Hollywood saw WarnerMedia’s positioning of its move as disingenuous: It will be almost impossible to go back, and it may force other studios to abandon the old model. Fans trained to expect immediate gratification will not be eager to return to the days of giving theaters an exclusive period to play movies. "
So why have they done this? Simples. Money. Lost money in box office revenue will be recouped via the streaming platform that they themselves own and can market......
"As it moves to bolster HBO Max, WarnerMedia is almost assuredly giving up hundreds of millions in box office revenue, which means that some of its big-budget movies ($200 million or more in production costs, plus tens of millions of dollars in marketing spending) will lose money, regardless of their reception by audiences. But AT&T is mostly interested in the financial windfall that it stands to make in the longer term by turning HBO Max into a success.
The Walt Disney Company, for instance, has taken a beating from the pandemic, with its theme parks struggling in particular. But Disney shares are nonetheless trading at all-time highs because of the success of Disney+ over the last year. Next week, Disney will hold an investor day and outline its own plans for supercharging its streaming services, which include Hulu. Disney is also expected to shift release plans for coming films, making titles like “Cruella” instantly available online."
https://www.nytimes.com/2020/12/03/business/media/warner-brothers-movies-hbo-max.html
Who knows. Looking at the US offing...
Cinemark which dropped 22% yesterday is currently up 5% pre-market
AMC which dropped 16% yesterday is currently up 1% pre-market
FFS give it a rest.
You're blatant deramping posts have no effect on the SP of a FTSE share and you're just showing everyone what a bell-end you are.
Enough with the soundbite posts.
@PinkEye
You either don't read what I write or can't read what I write.
I clearly stated this would open 20% down, and it did, I also said I would see what happens, rather than sell. I also said the FDA approval will act as a catalyst which is expected next week.
Stop cherry picking what I write.
This is no longer a long term recovery share with the decision that WB have made. It is a trading on sentiment share. The fundamentals have changed to the downside.
@Jm4tw
I play the market sentiment AND the fundamentals.
Covid-19 is fluid and fundamentals are changing all the time. Ultimately, money is the decising factor on if you are wrong or right on a share. I have made lots of money on Cineworld. I stand by my analysis as sound.
It is entirely possible for a share to get such good news that it becomes a steal to buy, and then for really bad news to materialize for the share to become a turd. I use that to my advantage. As should all traders/investors.
It's worked really well for me.
" abandoned it for BOO"
You make it sound like Cineworld is my child and I did a terrible thing by selling and buying some other stock.
Laughable.
@sally26
If you learn to read, you will know that I have not yet sold. But you are welcome.
@Jm4tw
Disney Product = Marvel, Star Wars etc etc
Disney Platform = Disney +
They have the product and the means to distribute.
The CEO of Disney and WB would disagree with you. You should go tell them that you know better.
@bullsbears
Thanks for a diplomatic reply.
The problem with the news is, WB is doing this just so they they can enter the fray in the streaming space with HBO Max. They are likely to make big losses from reduced Cinema revenue by going down this root but since competitors have streaming platforms, WB are pursuing this as a strategy to garner a large user base fast. Kind of like starting a restaurant business. The first year or so are losses but then you aim to materialize gains once established and the outlay has been paid off.
For cinema, it is a perfect storm of huge debts, and diminished returns with potentially many staying at home to stream whilst of course some people still going to the cinema.
With the advent of PS5 and Xbox Series X, there will be many in the Cinema target age rage of under 40's looking to upgrade their hardware, buying newer, larger TVs and sound systems. I myself did so mere months ago.
Whatever way you cut it, this doesn't bode well for cinemas in the long run. It would be different if Cinemas weren't already on their knees.
I suspect some sort of deal will be reached between Cinemas and Studios but who knows what that will look like. Either way, Studios hold the cards right now and I envisage that with Disney promoting streaming and now WB, who took a gamble with Tenet and then did a complete U turn and decided to send 17 movies to streaming, including blockbusters, others will likely follow suit as the streaming space competition heats up.
Everyone is after that Netflix pie.
@Jm4tw
I haven't sold yet. Still in good profit so am seeing how today plays out. I am expecting some positivity with FDA approvals. All you rampers will jump on that and I'm looking to use that sentiment wave to my advantage. Not that I share it. I am here to make money. Not to bind my life to Cineworld, come what may. This WB news is horrendous news. Fundamentals changing news.
The only way I see to maybe salvage this is if all the Cinema chains come together and hammer out some sort of deal, similar to the Universal deal, to try and getting some better terms with studios but let's see.
Rampers do you see what I mean about material news. I'm sure you'll still find a way to shine up this turd that is a 20% drop.
This news is really bad for Cinemas. Like really bad.
@toes1664
Amen brother
No set buy- back in price. This is a share to trade. I don't see this as a long term investment. Never did. Too much is going against the Cinema industry, mainly the studios who were once friends but now turned foe.
If I buy, it'll be to trade on sentiment, not on fundamentals.
@Jm4tw
Tin foil hats at the ready. There's a good conspiracy theory nutjob in love with a share.
@PinkEye
"Most serious guys would laugh at you classing 4 stocks as diversified."
Who are these most 'serious guys'? I'd like to meet them. Are you a 'most serious guy'? Are these 'most serious' guys in Cineworld and about to face the same drop we are? Do these 'most serious guys' consider you to be a ' most serious guy'. Are you their friend? How does one join the elite club of 'most serious guys'. Do 'most serious guys' always make profits? So many questions.
See what I mean. Facing a cliff edge drop yet still attacking the realists.
Rampers have Stockholm Syndrome