Skip to Content
US Videos

The 4 Drivers of Moat in Media Today

Long-term success will require producing a variety of programming across multiple sectors, a strong portfolio of network brands, lower exposure to advertising revenue, and more exposure to international markets.

Mentioned: , , ,

Neil Macker: We recently published a report looking at the television ecosystem and outlining a four-part moat framework for media companies. As a result of this work, we've downgraded Discovery Communications (DISCA) to a narrow moat from wide moat. In our report, we looked at some of the challenges facing the media industry, such as cord-cutting, and how the media industry can evolve to tackle these challenges.

We've examined trends facing the industry, including declining television penetration and lower viewership by young adults, along with some common reasons given for these problems such as pricing. We believe that the industry is ripe for innovation on the distribution side and believe that content owners should work with new distributors such as Apple and Sony to protect the value of the bundle to consumers. Based on this work, we've created a four-part framework for evaluating the competitive positioning of media firms within the industry.

Neil Macker does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.