Redbox (RDBX): Can This SPAC Transition from DVDs in Front of 7-11 Stores to a Force in AVOD?

Leading Independent Investment Research, Morningstar, Inc.

Morningstar

Leading Independent Investment Research

Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. We offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. 

Morningstar provides data on more than 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 16 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $180 billion in assets under advisement or management as of June 30, 2015. We have operations in 27 countries.

Download the Morningstar Fact Sheet : http://corporate.morningstar.com/US/documents/MarketingFactSheets/AboutMorningstarFactsheet.pdf

Thematic (Sector/Industry)

Poland Consumer discretionary / Thematic (Sector/Industry)

Over the past 10 years, subscription video on demand has transformed from an add-on repository of older rerun content to a primary or secondary viewing platform with high-quality, first-run programming. Although <a href="https://www.smartkarma.com/entities/20451" target="_blank" data-smartkarma-citation="entities:20451:1">Netflix Inc (NFLX US)</a> has emerged as a winner in the SVOD marketplace so far, we have reservations about its ability to meet or exceed market expectations around future subscriber growth and margin expansion, and we reiterate our $73 fair value estimate for this narrow-moat firm.Our report examines the SVOD market, rapidly changing video-viewing trends, and opportunities for SVOD players both in the U.S. and internationally. In short, we see increased competition and the availability of broadband as constraints on Netflix's future growth. In the U.S., we see threats from <a href="https://www.smartkarma.com/entities/409" target="_blank" data-smartkarma-citation="entities:409:1">Amazon.Com Inc (AMZN US)</a>, Hulu, and a growing list of niche SVOD providers as dampeners on Netflix's ability to add subscribers.We prefer investing in SVOD on the media side, particularly with wide-moat firms like <a href="https://www.smartkarma.com/entities/15439" target="_blank" data-smartkarma-citation="entities:15439:1">The Walt Disney Co (DIS US)</a> and <a href="https://www.smartkarma.com/entities/7746" target="_blank" data-smartkarma-citation="entities:7746:1">Twenty First Century Fox Inc (FOX US)</a>, as both firms can sustain their moats in the face of the ongoing changes across the media landscape. In Australia, we see no-moat <a href="https://www.smartkarma.com/entities/708" target="_blank" data-smartkarma-citation="entities:708:1">Nine Entertainment Co Holdings Ltd (NEC AU)</a> as the best stock for gaining exposure to SVOD expansion.Analysts: Neil Macker et al

Over the past 10 years, subscription video on demand has transformed from an add-on repository of older rerun content to a primary or secondary viewing platform with high-quality, first-run programming. Although Netflix Inc (NFLX US) has emerged as a winner in the SVOD marketplace so far, we have reservations about its ability to meet or exceed market expectations around future subscriber growth and margin expansion, and we reiterate our $73 fair value estimate for this narrow-moat firm.Our report examines the SVOD market, rapidly changing video-viewing trends, and opportunities for SVOD players both in the U.S. and internationally. In short, we see increased competition and the availability of broadband as constraints on Netflix's future growth. In the U.S., we see threats from Amazon.Com Inc (AMZN US), Hulu, and a growing list of niche SVOD providers as dampeners on Netflix's ability to add subscribers.We prefer investing in SVOD on the media side, particularly with wide-moat firms like The Walt Disney Co (DIS US) and Twenty First Century Fox Inc (FOX US), as both firms can sustain their moats in the face of the ongoing changes across the media landscape. In Australia, we see no-moat Nine Entertainment Co Holdings Ltd (NEC AU) as the best stock for gaining exposure to SVOD expansion.Analysts: Neil Macker et al

The Stream Less Taken:We Prefer Media Stocks, Not Netflix, Along the Path to Worldwide SVOD Adoption