DOW JONES- $13,437.13

S&P 500- $1,440.67

NADSAQ- $3,116.23

The Walt Disney Co.- $52.28

News Corporation- $24.79

Time Warner Inc.- $45.33

This week in the industry of entertainment diversified, according to the Motley Fool, Google Inc. has proven that their YouTube segment can develop and market content to compete with major broadcast channels. One of the YouTube funded video-series was picked up by ABC, which is meant as an example of the potential and quality of some videos on YouTube. Google plans to extend its’ program to fill a 30min. time slot on Disney’s ABC network. Google is hoping this is a sign of bigger and better things to come. It has always been a desire of YouTube to become a key player in the entertainment industry. They we blocked by ABC, CBS, and NBC in 2010 from having their online versions of their full programs played. This kept Google TV from reaching its full potential. If the big name companies would not have blocked their shows from playing on YouTube, they would have had an advantage over cable companies.

If YouTube does increase its reach and its programing, it could lead to decreases in the value of the stocks of The Walt Disney Co., News Corp, CBS Corporation, and Time Warner Inc. However, even if YouTube does become a key player in the entertainment industry, they will not be able to generate near the amount of revenue that the previously mentioned companies do. Therefore, the overall negative effect on these companies will not be great.

Also in news form my industry, I read that ticket sales at movie theatres are still falling short of the same weeks in 2011. None of the four movies that opened this past weekend drew large crowds. The movie End of Watch led the way with $13.2million in ticket sales, the Avengers sold around 16 times as many tickets when it opened. This continuing trend of low sales could mean a big problem for Hollywood and the entertainment industry as a whole.

DOW JONES- $13,579.47

S&P 500- $1,460.15

NADSAQ- $3,179.96

The Walt Disney Co.- $52.74

News Corporation- $25.08

Time Warner Inc.- $45.90

In the industry of Entertainment Diversified, I found out that the U.S. government is dropping a lawsuit against News Corp.’s Fox network over their refusal to pay indecency fines for a 2003 broadcast. The Justice Department said, without elaboration, that they are voluntarily dismissing the case. I believe this action could lead to higher stock prices for News Corp. since there is no chance of them having to pay a large fine for the incident. Without this lawsuit hanging over their heads they are free to move on to focus on more pressing matters of business.

Also in my industry Walt Disney hit a new 52-week high. TheStreet Ratings rates Walt Disney as a buy. They say the company’s strength can be seen in multiple areas. These strengths outweigh the fact that the company shows low profit margins. As stated in my previous blog,  many people believe Disney is an undervalued company that has a huge market in the United States and is expanding their reach to other areas of the world.

Another very interesting article I read about my industry was about Disney joining forces with J.C. Penney. The Walt Disney Company will partner will J.C. Penny to open more than 500 in-store boutiques featuring Disney products designed exclusively for the retail giant. According to The Motley Fool, an account from one person claims that each Disney shop will sell costumes, figurines, footwear, apparel for boys, girls, and babies. Some see this move as a speculative play, because of J.C. Penney’s decrease in same-store sales in excess of 20% and a net loss of $81 million. However, Swiss bank Credit Suisse raised its price target on Disney to $58 a share from $56. I am hoping this move pays off and Disney stocks increase and not decrease significantly because of this move. I am an optimist and believe Disney can make this work for their benefit. 

DOW JONES- $13,593.37
S&P 500- $1465.77
NASDAQ- $3184.95

The Walt Disney Company- $52.35
News Corporation- $24.91
Time Warner Inc. - $44.71

In the news for my industry, Entertainment Diversified, I found out that the movie industry may be dying. According to The Motley Fool, the movie industry received its’ lowest levels in over ten years, bringing in just under $52 million from the top twelve grossing films. The last time these levels were that low, it was two weeks after the September 11^th attacks.  September has always been a bad month for Hollywood, being named a “dumping grounds,” but there seems to be something more going on this month.  Some speculate a reason for this may be the lack of newness or change in the movie-going experience in the last decade. As a result, the theatres and studios are finding it hard to make a profit on many of their movies.

I am not sure how much truth there is to the speculation of the industry’s decline because all of my stocks have only increased in value. However, if these levels continue to stay low, my stocks could be severely affected and their value diminished. Hopefully some new technology or innovation can be brought to the movie industry that helps boost revenue and allows stock prices to rise.

Also in my industry, according to Bloomberg.com, News Corporation has decided to separate its LA film and television production units. Along with the decision to separate the two units, co-chairman and CEO of Twentieth Century Fox movie studio, Tom Rothman resigned. Rothman helped oversee both the movies “Avatar” and “Titanic” which happen to be the first and second highest grossing movies on the all-time list, globally. This is a huge loss for News Corporation and I fear their stocks may lose some value for a while as a result.

DOW JONES- $13,306.64
S&P 500- $1,437.92
NASDAQ- $3,136.42

The Walt Disney Company- $51.74
Time Warner Inc.- $24.66
News Corp.- $43.64



I chose Entertainment Diversified as my industry because I thought that companies such as Universal, Paramount, and Disney would be included in the industry. However, when I went to pick my three companies for my stock portfolio I was surprised to find how few public companies were in my industry. The Walt Disney Company was a publicly traded company so I chose it because Disney is a largely successful company and I knew it would be a safe investment. I chose my other companies by looking at their revenue streams and chose my other two companies based which company brought in the most profits per year. I was quite surprised how cheap a single share in Disney, only being around $50. I knew it was a safe investment because everybody loves Disney. Then while reading news on my industry I found that other people agree that Disney is undervalued. Disney, not only has a huge market in the United States already, they are increasing their fleet and also transforming their Disney California Adventure, and Disney is expanding their reach, building parks in Hong Kong and Shanghai.

Also in my industry, I read that CNN led cable news ratings for Obama's convention speech. Time Warner Inc., which owns CNN, averaged 5.56 million viewers. The Walt Disney Companies' ABC drew 4 million viewers, CBS Corp. received 3.29 million, and News Corporations' Fox received 2.91 million viewers. Before reading this article I did not know which companies owned companies such as Fox, ABC, and CNN. This article gave me much insight into my industry and the companies involved in this industry.