We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
4 Film & Television Production Stocks to Watch on Solid Industry Trends
Read MoreHide Full Article
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 News Corporation (NWSA - Free Report) , Cinemark (CNK - Free Report) , IMAX (IMAX - 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 a better understanding of audience preferences and to create 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 Bright 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 #30, which places it in the top 12% 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 top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are optimistic about this group’s earnings growth potential.
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, Lags S&P 500
The Zacks Film and Television Production and Distribution industry has outperformed the broader Zacks Consumer Discretionary sector but underperformed the S&P 500 composite over the past year.
The industry has declined 1.2% in the abovementioned period compared with the broader sector’s decline of 18.8%. The S&P 500 has risen 15.3% 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 2.58X compared with the S&P 500’s 5.85X and the sector’s 2.07X.
Over the past five years, the industry has traded as high as 3.14X and as low as 1.35X, recording a median of 2.23X, as the chart below shows.
Trailing 12-Month P/S Ratio
4 Film & Television Stocks to Watch Right Now
CuriosityStream appears well-positioned for near-term gains, backed by strengthening fundamentals. Following a record second quarter, the company raised full-year 2026 revenue guidance to $77–$82 million and adjusted EBITDA view to $18-$22 million, signaling strong confidence in its subscription and AI licensing engines. Licensing revenues were $14.1 million, up 48% year over year. Licensing revenues continue gaining traction, driven by a rights-cleared corpus exceeding 880 billion tokens of production-grade code for AI training.
With content partnerships spanning traditional broadcasters and hyperscalers, the pipeline remains robust. In September 2026, a veteran media finance executive joined as CFO to lead the next growth phase. New subscriber launches with Apple, Sling and Dish, a 73% gross margin, and its steady quarterly cash dividend of $0.085 further underscore its durable, cash-generative model.
The Zacks Consensus Estimate for this Zacks Rank #1 (Strong Buy) company’s 2026 earnings has moved north by 185.7% to 20 cents per share over the past 60 days. CURI shares have declined 3.9% in the past six-month period. You can see the complete list of today’s Zacks #1 Rank stocks here.
Price and Consensus: CURI
IMAX presents an increasingly positive near-term setup underpinned by accelerating fundamentals. Its summer 2026 global box office reached a record $728 million — up 73% over the previous benchmark — capturing 5.8% of total industry box office on just over 1,800 screens. The company has guided $1.4 billion in full-year 2026 global box office. A strong second-half content slate, anchored by Dune: Part Three and multiple Filmed For IMAX releases, including Resident Evil and Digger, bolsters near-term revenue visibility.
A July 2026 partnership with Goer Dynamics to develop the world's first IMAX in-vehicle entertainment system signals meaningful brand extension into China's autonomous vehicle segment. Network expansion — 421 systems in backlog and 9% international growth year over year — further supports structural upside ahead.
The Zacks Consensus Estimate for IMAX’s 2026 earnings has moved north by 4.4% to $1.90 per share over the past 60 days. Shares of this Zacks Rank #2 (Buy) company have increased 36.6% in the past six-month period.
Price and Consensus: IMAX
News Corporation presents a compelling near-term investment opportunity as fiscal 2027 benefits from multiple growth catalysts. The company's expanding AI content licensing strategy—with active partnerships and ongoing negotiations with additional technology partners—positions Dow Jones as a critical infrastructure within the AI ecosystem. Management expects further margin expansion beyond fiscal 2026's 18% level, underscored by a firm focus on free cash flow improvement. The ongoing $1 billion buyback program, actively deployed through September 2026, underscores confidence in intrinsic value.
Digital Real Estate Services and Dow Jones Energy are guided for improved growth in the current fiscal year, while HarperCollins benefits from favorable year-over-year comparisons. These catalysts collectively suggest a fundamentally strengthening business, well-positioned for sustained growth into fiscal 2027.
The Zacks Consensus Estimate for this Zacks Rank #3 (Hold) company’s fiscal 2027 earnings has moved north by 8.3% to $1.31 per share over the past 60 days. NWSA shares have returned 17.5% in the past six-month period.
Price and Consensus: NWSA
Cinemark entered the second half of 2026 with compelling near-term catalysts. A record domestic summer box office and a stacked year-end film lineup — including Avengers: Doomsday, Dune: Part Three, and The Hunger Games: Sunrise on the Reaping — point to sustained attendance momentum. Premium format expansion continued in the first half, with 21 new PLF auditoriums and D-BOX motion seats added to 112 additional auditoriums.
A September 2026 partnership with the Dallas Cowboys broadens brand visibility and fan engagement. Movie Club crossed 1.5 million members, reinforcing recurring revenue growth. Multiple studios committed to 45-day minimum exclusive theatrical windows, structurally improving box office monetization. Full-year capex targets $250 million, and a reaffirmed quarterly dividend of $0.09 per share signals financial confidence.
The Zacks Consensus Estimate for this Zacks Rank #3 company’s 2026 earnings has moved up by 7.3% to $2.50 per share over the past 60 days. CNK shares have gained 27.6% in the past six-month period.
View the Zacks #1 Rank List
Image: Bigstock
4 Film & Television Production Stocks to Watch on Solid 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 News Corporation (NWSA - Free Report) , Cinemark (CNK - Free Report) , IMAX (IMAX - 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 a better understanding of audience preferences and to create 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 Bright 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 #30, which places it in the top 12% 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 top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are optimistic about this group’s earnings growth potential.
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, Lags S&P 500
The Zacks Film and Television Production and Distribution industry has outperformed the broader Zacks Consumer Discretionary sector but underperformed the S&P 500 composite over the past year.
The industry has declined 1.2% in the abovementioned period compared with the broader sector’s decline of 18.8%. The S&P 500 has risen 15.3% 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 2.58X compared with the S&P 500’s 5.85X and the sector’s 2.07X.
Over the past five years, the industry has traded as high as 3.14X and as low as 1.35X, recording a median of 2.23X, as the chart below shows.
Trailing 12-Month P/S Ratio
4 Film & Television Stocks to Watch Right Now
CuriosityStream appears well-positioned for near-term gains, backed by strengthening fundamentals. Following a record second quarter, the company raised full-year 2026 revenue guidance to $77–$82 million and adjusted EBITDA view to $18-$22 million, signaling strong confidence in its subscription and AI licensing engines. Licensing revenues were $14.1 million, up 48% year over year. Licensing revenues continue gaining traction, driven by a rights-cleared corpus exceeding 880 billion tokens of production-grade code for AI training.
With content partnerships spanning traditional broadcasters and hyperscalers, the pipeline remains robust. In September 2026, a veteran media finance executive joined as CFO to lead the next growth phase. New subscriber launches with Apple, Sling and Dish, a 73% gross margin, and its steady quarterly cash dividend of $0.085 further underscore its durable, cash-generative model.
The Zacks Consensus Estimate for this Zacks Rank #1 (Strong Buy) company’s 2026 earnings has moved north by 185.7% to 20 cents per share over the past 60 days. CURI shares have declined 3.9% in the past six-month period. You can see the complete list of today’s Zacks #1 Rank stocks here.
Price and Consensus: CURI
IMAX presents an increasingly positive near-term setup underpinned by accelerating fundamentals. Its summer 2026 global box office reached a record $728 million — up 73% over the previous benchmark — capturing 5.8% of total industry box office on just over 1,800 screens. The company has guided $1.4 billion in full-year 2026 global box office. A strong second-half content slate, anchored by Dune: Part Three and multiple Filmed For IMAX releases, including Resident Evil and Digger, bolsters near-term revenue visibility.
A July 2026 partnership with Goer Dynamics to develop the world's first IMAX in-vehicle entertainment system signals meaningful brand extension into China's autonomous vehicle segment. Network expansion — 421 systems in backlog and 9% international growth year over year — further supports structural upside ahead.
The Zacks Consensus Estimate for IMAX’s 2026 earnings has moved north by 4.4% to $1.90 per share over the past 60 days. Shares of this Zacks Rank #2 (Buy) company have increased 36.6% in the past six-month period.
Price and Consensus: IMAX
News Corporation presents a compelling near-term investment opportunity as fiscal 2027 benefits from multiple growth catalysts. The company's expanding AI content licensing strategy—with active partnerships and ongoing negotiations with additional technology partners—positions Dow Jones as a critical infrastructure within the AI ecosystem. Management expects further margin expansion beyond fiscal 2026's 18% level, underscored by a firm focus on free cash flow improvement. The ongoing $1 billion buyback program, actively deployed through September 2026, underscores confidence in intrinsic value.
Digital Real Estate Services and Dow Jones Energy are guided for improved growth in the current fiscal year, while HarperCollins benefits from favorable year-over-year comparisons. These catalysts collectively suggest a fundamentally strengthening business, well-positioned for sustained growth into fiscal 2027.
The Zacks Consensus Estimate for this Zacks Rank #3 (Hold) company’s fiscal 2027 earnings has moved north by 8.3% to $1.31 per share over the past 60 days. NWSA shares have returned 17.5% in the past six-month period.
Price and Consensus: NWSA
Cinemark entered the second half of 2026 with compelling near-term catalysts. A record domestic summer box office and a stacked year-end film lineup — including Avengers: Doomsday, Dune: Part Three, and The Hunger Games: Sunrise on the Reaping — point to sustained attendance momentum. Premium format expansion continued in the first half, with 21 new PLF auditoriums and D-BOX motion seats added to 112 additional auditoriums.
A September 2026 partnership with the Dallas Cowboys broadens brand visibility and fan engagement. Movie Club crossed 1.5 million members, reinforcing recurring revenue growth. Multiple studios committed to 45-day minimum exclusive theatrical windows, structurally improving box office monetization. Full-year capex targets $250 million, and a reaffirmed quarterly dividend of $0.09 per share signals financial confidence.
The Zacks Consensus Estimate for this Zacks Rank #3 company’s 2026 earnings has moved up by 7.3% to $2.50 per share over the past 60 days. CNK shares have gained 27.6% in the past six-month period.
Price and Consensus: CNK