In a new report, Albert Fried & Company analyst Rich Tullo discusses his take on the cord-cutting phenomenon in TV and the economic factors that are actually at play for leading disruptors Netflix, Inc. NFLX, Amazon.com, Inc. AMZN and Time Warner Inc TWX.
According to Tullo, cord-cutting is only one element of a major shift in media content from tangible devices and paper to digital binary code. Tullo uses the acronym MASS (Media as a Service) to describe the cloud-based nature of the transition.
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Tullo believes there are several key forces driving this transition, some of which might surprise casual observers. He said cord-cutting is not driven by cost, but rather by social influences.
"Social Media has and will continue to have an outsized influence on business decisions because decision makers are acting on correlation and not causation," he added.
In addition, Tullo notes international expansion as a long-term MASS trend rather than a short-term hit.
Disclosure: the author holds no position in the stocks mentioned.
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