Corus gets in on the streaming platform market dream team
New media delivery is already here, providing consumers with much greater and diverse content than ever before. Online based delivery content is taking over. Internet speeds are changing the way we view and access entertainment content. No longer do we need to subscribe to a service that provides home-based content only, an online service can be accessed anywhere there is a high-speed internet connection, giving more flexibility and mobility.
Corus Entertainment (TSX: CJR.B) is a leading Canadian mass media and content company that creates and delivers high- quality brands that are compelling, engaging, interactive and informative, to millions of people every day. The Company’s portfolio encompasses 37 specialty television channels and 15 conventional television channels that include premium brands like the Oprah Winfrey Network Canada,HGTV Canada, Food Network Canada, History®, Showcase, National Geographic, and Disney Channel Canada to name just a few. Representing the most-listened to stations in Canada, Corus owns 39 radio stations that are located in 8 out of the 10 top markets and boasts a world-class content that is sold in more than 160 countries across the world. Corus are a media and content powerhouse
Corus Entertainment has leading content
Children are not going to be left out asNelvana , the cornerstone of the Company’s kid’s content, produce and distribute globally recognized brands that include Franklin, Little Charmers, Max & Ruby and Beyblade. Another part of the Corus family is Toon Boom, a global leader in animation creation software, and Kids Can Press, Canada’s leader in children’s publishing. Targeted to women and families, the Company’s business content includes a growing slate of original unscripted lifestyle content.
Corus Entertainment is embracing new online distribution channels and content
In a strategic move to keep up with current trends and media demographics, Corus Entertainment Inc. has joined the Global Video Measurement Alliance. This is a new industry effort to determine the effectiveness of social media programming and advertising. It uses technology that tracks and analyses what’s being watched on various social media platforms around the world. As one of Canada’s largest producers and distributors of digital content through social media platforms, Corus Senior Vice-President Dervla Kelly says the standardization of social video metrics is long overdue. Corus’ social digital agency has been developing new advertising supported formats to complement the Company’s television and radio businesses.
An example of Corus embracing change is when theyrecently announced a move into the digital streaming market, announcing “Corus’ Global TV is now streaming on all Roku devices in Canada”. This makes Corus the first Canadian broadcaster to join the streaming platform market.
Drew Robinson, Vice President, Content Distribution, Corus Entertainment stated: “We are thrilled to be the first Canadian broadcaster to bring our premium programming to Roku’s extensive and highly-engaged user base…Global continues to offer viewers anytime, anywhere options to access our content and we look forward to growing our audiences even further with Roku.”
Growth in digital advertising to help drive revenue growth
Corus’ revenues are generated from advertising, merchandising distribution and content subscriptions. Revenues in the second quarter of 2019 increased 5% from the prior year as a result of an 11% increase in advertising revenues; that was offset by a 13% decrease in merchandising, distribution and other revenues. Improved pricing flexibility, on both global and certain specialty channel advertising, traction in ad tech, growth in digital advertising, and a new revenue focus on direct to consumer businesses was the main driver behind the increase in advertising revenues. Corus’ powerful combination of entertainment assets already makes them an industry leader in Canada and a significant player in the international marketplace. Their recent move into the online streaming market further establishes the Company as an industry leader heading in the right direction.
Corus Entertainment has a market cap of C$1.4b; and an analyst’s consensus price target of C$8.36 representing 27% upside.