It's Friday, so it is time for the Avory Chart of the Week!
The consumption of content has evolved from very static viewing abilities to more dynamic technologies. We think there is a long runway for growth. Enjoy!
The world has changed. In 2001 nearly 100% of the population had a VCR to watch content, today that number has dropped to .02%. The original challenger was the DVD player back in the early 2000's. Sure, the DVD player still holds a 69% share of households, but that is certainly not the future we want to be focusing on. Alternatively, we highlight a chart which exhibits the demise of the VCR and the growth in streaming on demand (SVOD) and the penetration of Internet Connected Devices (ICD). As connectivity advances and more and more devices are internet enabled, the multiplier effect of value will persist. Content creators will create more content as the overall audience grows, distribution platforms will have a more extensive offering by which they can monetize, and consumers will be immersed with entertainment options. The battle for distribution + content is upon us. Apple bought rights to original content from Oprah, Disney and Comcast are fighting for Fox assets, Netflix continues its dominance, and Amazon/Facebook are challenging. The next 3-5 years will be exciting to watch how this plays out.
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Sean D. Emory
Avory & Co. Founder & Chief Investment Officer
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