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3 Film & Television Production Stocks to Watch Amid Dull Industry Trends
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The Zacks Film and Television Production and Distribution industry is witnessing a surge in demand for digital entertainment due to operational constraints faced by movie theaters, theme parks and cruise lines. This increased consumption of online media, music and news, driven by the work-and-learn-from-home trend, has been a boon for industry players like Live Nation Entertainment (LYV - Free Report) , TKO Group Holdings, Inc. (TKO - Free Report) and CuriosityStream (CURI - Free Report) . However, as more players enter the field, content costs are skyrocketing, putting pressure on profitability. This trend is forcing companies to spend heavily on original programming and exclusive rights to attract and retain viewers, which can strain financial resources and impact stock performance.
Industry Description
The Zacks Film and Television Production and Distribution industry encompasses companies engaged in the creation, distribution and exhibition of film and television content. The core activities revolve around producing entertainment for theaters, television networks, video-on-demand platforms, streaming services and other outlets that showcase such works. A notable company like Imax specializes in advanced motion picture technologies and immersive presentation experiences. Industry participants are involved in the production and dissemination of movies destined for theatrical releases and direct-to-video markets, as well as television programming. The financial performance of these entities hinges greatly on the global box office success of their films, coupled with the number of new releases and the viewership ratings garnered by their television shows.
3 Film and Television Production Industry Trends in Focus
Over-the-Top Services Gain Prominence: Content creators are increasingly distributing through over-the-top streaming services to capitalize on the popularity of their franchises. Their aim is to provide exclusive content and a differentiated viewing experience. However, streaming companies themselves are producing more original, award-winning programming to reduce licensing costs and reliance on third-party providers, which could undermine traditional content distribution strategies.
Binge-Watching Drives Consumption: Phenomena like binge-watching, wider Internet adoption, and advancements in mobile, video and wireless technologies have led consumers to frequently view content on smaller screens. To adapt to these new viewing patterns, industry players are pivoting to digital content distribution. The rise of digital capabilities provides easier access to consumer data, allowing production companies to leverage AI tools for better understanding audience preferences and creating resonant content. However, intense competition from streamers is forcing increased spending on content and marketing, hurting profitability.
Technological Advancement Aids Prospects: Exhibitors are adopting highly efficient, cost-effective laser projection systems to enhance image quality and the overall movie experience. Technologies like motion seating, immersive audio, interactive movies, AR and VR are expected to further elevate the viewing experience. Conversely, the growth of alternative distribution channels like home video, pay-per-view, streaming, VOD, Internet and broadcast TV is challenging traditional exhibitors.
Zacks Industry Rank Indicates Dull Prospects
The Zacks Film and Television Production and Distribution industry is housed within the broader Zacks Consumer Discretionary sector. It carries a Zacks Industry Rank #155, which places it in the bottom 37% of more than 246 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates encouraging near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s position in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are pessimistic about this group’s earnings growth potential. Since May 31, 2024, the industry’s earnings estimate for 2025 has moved down 14%.
Despite the gloomy industry outlook, a few stocks are worth watching based on a strong earnings outlook. Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Outperforms the Sector, S&P 500
The Zacks Film and Television Production and Distribution industry has outperformed the broader Zacks Consumer Discretionary sector and the S&P 500 composite over the past year.
The industry has returned 46.8% in the abovementioned period compared with the broader sector’s growth of 17.3%. The S&P 500 has risen 10.9% during the same time frame.
One-Year Price Performance
Industry's Current Valuation
On the basis of the trailing 12-month price-to-sales (P/S), a commonly used multiple for valuing Film and Television Production and Distribution stocks, the industry is currently trading at 2.79X compared with the S&P 500’s 5.33X and the sector’s 2.31X.
Over the past five years, the industry has traded as high as 2.79X and as low as 0.8X, recording a median of 1.67X, as the chart below shows.
Trailing 12-Month P/S Ratio
3 Film & Television Stocks to Watch Right Now
CuriosityStream: This Zacks Rank #2 (Buy) company has transformed into a smart investment opportunity following its remarkable first-quarter 2025 performance, achieving its first-ever positive net income and adjusted EBITDA. The company's financial strength is evident in its impressive 26% year-over-year revenue growth to $15.1 million, driven by a $4 million surge in licensing revenues that offsets slight subscription declines. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Management's disciplined approach has yielded five consecutive quarters of positive cash flow, a debt-free balance sheet with $39.1 million in liquidity, and a tripled dividend program now at $0.32 annually, plus a special $0.1 dividend. The company's strategic expansion through partnerships with Prime Video in key European markets and Roku Channel signals strong growth potential, while its five-pillar strategy focused on AI licensing opportunities, cost rationalization, and global expansion positions CURI for continued double-digit growth in both revenues and cash flow, making it an attractive value proposition in today's streaming landscape.
CuriosityStream shares have surged 291.5% year-to-date. The Zacks Consensus Estimate for the company’s 2025 bottom line is pegged at a loss of 1 cent per share, narrower than a loss of 9 cents 30 days ago.
Price and Consensus: CURI
Live Nation Entertainment: As the world's leading live entertainment company, Live Nation is firing on all cylinders with strong momentum across all business segments. Record-breaking deferred revenue levels ($5.4 billion for Concerts, up 24% year over year) demonstrate robust global consumer demand, while the 60% increase in stadium pipeline highlights explosive growth potential. Despite some quarterly fluctuations, core business drivers remain exceptionally strong with 95 million concert tickets already sold for 2025 events.
This Zacks Rank #3 (Hold) company's strategic venue expansion (20 new venues through 2026) promises significant capacity growth and recurring high-margin revenue. Meanwhile, on-site spending remains resilient, sponsorship commitments are pacing double-digits above 2024, and ticket pricing strategies are effectively maximizing revenues while maintaining affordability. With management confidently projecting double-digit operating income growth for 2025 and a long-term compound growth trajectory, Live Nation offers investors exposure to the thriving global experience economy.
Live Nation Entertainment shares have gained 9.8% year-to-date. The Zacks Consensus Estimate for the company’s 2025 earnings has moved south by 16.7% to $2.35 per share over the past 30 days.
Price and Consensus: LYV
TKO Group Holdings: This Zacks Rank #3 company reported revenues of $1.27 billion and adjusted EBITDA of $417.4 million, demonstrating robust 23% year-over-year growth. Recent acquisitions of IMG, On Location, and PBR strengthen TKO's already formidable portfolio featuring UFC and WWE, which both posted double-digit revenue increases.
WWE's WrestleMania 41 shattered all-time records across viewership, merchandise, and social engagement, while UFC's innovative partnership with Meta promises unprecedented fan engagement. The company's global expansion continues with multi-year events in Perth that previously generated nearly $50 million for the local economy. With the acquisition of AAA lucha libre and new boxing promotion partnerships, TKO is rapidly diversifying its premium sports entertainment offerings. Management's raised 2025 guidance reflects confidence in continued momentum and successful integration of acquired businesses.
The Zacks Consensus Estimate for TKO’s 2025 earnings has moved south by 6.4% to $2.48 per share over the past 30 days. TKO shares have surged 14.1% year-to-date.
Price and Consensus: TKO
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3 Film & Television Production Stocks to Watch Amid Dull Industry Trends
The Zacks Film and Television Production and Distribution industry is witnessing a surge in demand for digital entertainment due to operational constraints faced by movie theaters, theme parks and cruise lines. This increased consumption of online media, music and news, driven by the work-and-learn-from-home trend, has been a boon for industry players like Live Nation Entertainment (LYV - Free Report) , TKO Group Holdings, Inc. (TKO - Free Report) and CuriosityStream (CURI - Free Report) . However, as more players enter the field, content costs are skyrocketing, putting pressure on profitability. This trend is forcing companies to spend heavily on original programming and exclusive rights to attract and retain viewers, which can strain financial resources and impact stock performance.
Industry Description
The Zacks Film and Television Production and Distribution industry encompasses companies engaged in the creation, distribution and exhibition of film and television content. The core activities revolve around producing entertainment for theaters, television networks, video-on-demand platforms, streaming services and other outlets that showcase such works. A notable company like Imax specializes in advanced motion picture technologies and immersive presentation experiences. Industry participants are involved in the production and dissemination of movies destined for theatrical releases and direct-to-video markets, as well as television programming. The financial performance of these entities hinges greatly on the global box office success of their films, coupled with the number of new releases and the viewership ratings garnered by their television shows.
3 Film and Television Production Industry Trends in Focus
Over-the-Top Services Gain Prominence: Content creators are increasingly distributing through over-the-top streaming services to capitalize on the popularity of their franchises. Their aim is to provide exclusive content and a differentiated viewing experience. However, streaming companies themselves are producing more original, award-winning programming to reduce licensing costs and reliance on third-party providers, which could undermine traditional content distribution strategies.
Binge-Watching Drives Consumption: Phenomena like binge-watching, wider Internet adoption, and advancements in mobile, video and wireless technologies have led consumers to frequently view content on smaller screens. To adapt to these new viewing patterns, industry players are pivoting to digital content distribution. The rise of digital capabilities provides easier access to consumer data, allowing production companies to leverage AI tools for better understanding audience preferences and creating resonant content. However, intense competition from streamers is forcing increased spending on content and marketing, hurting profitability.
Technological Advancement Aids Prospects: Exhibitors are adopting highly efficient, cost-effective laser projection systems to enhance image quality and the overall movie experience. Technologies like motion seating, immersive audio, interactive movies, AR and VR are expected to further elevate the viewing experience. Conversely, the growth of alternative distribution channels like home video, pay-per-view, streaming, VOD, Internet and broadcast TV is challenging traditional exhibitors.
Zacks Industry Rank Indicates Dull Prospects
The Zacks Film and Television Production and Distribution industry is housed within the broader Zacks Consumer Discretionary sector. It carries a Zacks Industry Rank #155, which places it in the bottom 37% of more than 246 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates encouraging near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s position in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are pessimistic about this group’s earnings growth potential. Since May 31, 2024, the industry’s earnings estimate for 2025 has moved down 14%.
Despite the gloomy industry outlook, a few stocks are worth watching based on a strong earnings outlook. Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Outperforms the Sector, S&P 500
The Zacks Film and Television Production and Distribution industry has outperformed the broader Zacks Consumer Discretionary sector and the S&P 500 composite over the past year.
The industry has returned 46.8% in the abovementioned period compared with the broader sector’s growth of 17.3%. The S&P 500 has risen 10.9% during the same time frame.
One-Year Price Performance
Industry's Current Valuation
On the basis of the trailing 12-month price-to-sales (P/S), a commonly used multiple for valuing Film and Television Production and Distribution stocks, the industry is currently trading at 2.79X compared with the S&P 500’s 5.33X and the sector’s 2.31X.
Over the past five years, the industry has traded as high as 2.79X and as low as 0.8X, recording a median of 1.67X, as the chart below shows.
Trailing 12-Month P/S Ratio
3 Film & Television Stocks to Watch Right Now
CuriosityStream: This Zacks Rank #2 (Buy) company has transformed into a smart investment opportunity following its remarkable first-quarter 2025 performance, achieving its first-ever positive net income and adjusted EBITDA. The company's financial strength is evident in its impressive 26% year-over-year revenue growth to $15.1 million, driven by a $4 million surge in licensing revenues that offsets slight subscription declines. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Management's disciplined approach has yielded five consecutive quarters of positive cash flow, a debt-free balance sheet with $39.1 million in liquidity, and a tripled dividend program now at $0.32 annually, plus a special $0.1 dividend. The company's strategic expansion through partnerships with Prime Video in key European markets and Roku Channel signals strong growth potential, while its five-pillar strategy focused on AI licensing opportunities, cost rationalization, and global expansion positions CURI for continued double-digit growth in both revenues and cash flow, making it an attractive value proposition in today's streaming landscape.
CuriosityStream shares have surged 291.5% year-to-date. The Zacks Consensus Estimate for the company’s 2025 bottom line is pegged at a loss of 1 cent per share, narrower than a loss of 9 cents 30 days ago.
Price and Consensus: CURI
Live Nation Entertainment: As the world's leading live entertainment company, Live Nation is firing on all cylinders with strong momentum across all business segments. Record-breaking deferred revenue levels ($5.4 billion for Concerts, up 24% year over year) demonstrate robust global consumer demand, while the 60% increase in stadium pipeline highlights explosive growth potential. Despite some quarterly fluctuations, core business drivers remain exceptionally strong with 95 million concert tickets already sold for 2025 events.
This Zacks Rank #3 (Hold) company's strategic venue expansion (20 new venues through 2026) promises significant capacity growth and recurring high-margin revenue. Meanwhile, on-site spending remains resilient, sponsorship commitments are pacing double-digits above 2024, and ticket pricing strategies are effectively maximizing revenues while maintaining affordability. With management confidently projecting double-digit operating income growth for 2025 and a long-term compound growth trajectory, Live Nation offers investors exposure to the thriving global experience economy.
Live Nation Entertainment shares have gained 9.8% year-to-date. The Zacks Consensus Estimate for the company’s 2025 earnings has moved south by 16.7% to $2.35 per share over the past 30 days.
Price and Consensus: LYV
TKO Group Holdings: This Zacks Rank #3 company reported revenues of $1.27 billion and adjusted EBITDA of $417.4 million, demonstrating robust 23% year-over-year growth. Recent acquisitions of IMG, On Location, and PBR strengthen TKO's already formidable portfolio featuring UFC and WWE, which both posted double-digit revenue increases.
WWE's WrestleMania 41 shattered all-time records across viewership, merchandise, and social engagement, while UFC's innovative partnership with Meta promises unprecedented fan engagement. The company's global expansion continues with multi-year events in Perth that previously generated nearly $50 million for the local economy. With the acquisition of AAA lucha libre and new boxing promotion partnerships, TKO is rapidly diversifying its premium sports entertainment offerings. Management's raised 2025 guidance reflects confidence in continued momentum and successful integration of acquired businesses.
The Zacks Consensus Estimate for TKO’s 2025 earnings has moved south by 6.4% to $2.48 per share over the past 30 days. TKO shares have surged 14.1% year-to-date.
Price and Consensus: TKO