Back to top

Analyst Blog

Universal Pictures, a part of Comcast Corporation (CMCSA - Analyst Report) has decided to extend its movie rights agreement with HBO (Home Box Office) TV network, a part of Time Warner Inc. (TWX - Analyst Report).

Since 2003, Universal Pictures has been selling its exclusive movies rights to HBO channel in order to view their movies on the latter’s network. So, with the expiry of the contract nearing in 2015, Universal Pictures plans to further renew its agreement for the next 10 years. However, neither of the two companies have revealed the financial terms of the deal.

Such an early renewal of contract, especially by HBO has stemmed from the recent deal signed between Netflix, Inc. (NFLX - Analyst Report) and The Walt Disney Company’s (DIS - Analyst Report) Disney Movies. To stay ahead of the race, HBO is planning for an early renewal of contract with different movie studios.

Universal Studios or better known as Universal Pictures released 17 movies in 2012 with a total gross collection of more than $1.3 billion. Last year, it became the sixth largest distributor of Hollywood movies with a market share of 12.27%.

Universal Pictures had a pretty decent last year. Movies like Ted and Doctor Seuss' The Lorax garnered huge revenue for the studio. Moreover, the company has got several movies lined up for release in 2013. So, keeping these factors in mind, HBO is willing to extend its contract with the studio, hence giving not a single chance to other TV channels or video streaming companies to strike any fresh deal with the studio.

Currently, we are maintaining our long-term Neutral recommendation on Comcast. It has a Zacks#3 Rank, implying a short-term (Hold) rating on the stock.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
BITAUTO HOL… BITA 81.41 +4.73%
PLANAR SYST… PLNR 4.38 +3.67%
CHINA BIOLO… CBPO 47.64 +2.72%
SOUTHWEST A… LUV 32.08 +2.62%
SPIRIT AIRL… SAVE 72.90 +2.53%