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4 Film & Television Production Stocks to Watch on 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) , News Corporation (NWSA - Free Report) , Warner Music Group (WMG - Free Report) , and IMAX Corporation (IMAX - 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 #166, which places it in the bottom 33% 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 Aug. 31, 2024, the industry’s earnings estimate for 2025 has moved down 17.9%.
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 36% in the abovementioned period compared with the broader sector’s growth of 26.1%. The S&P 500 has risen 19.7% 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 2.53X compared with the S&P 500’s 6.04X and the sector’s 2.4X.
Over the past five years, the industry has traded as high as 2.81X and as low as 1.33X, recording a median of 1.95X, as the chart below shows.
Trailing 12-Month P/S Ratio
4 Film & Television Stocks to Watch Right Now
Warner Music Group: This Zacks Rank #2 (Buy) company presents compelling investment opportunities driven by strategic portfolio expansion and operational improvements, positioning the company advantageously in the evolving music landscape. The recent acquisition of a controlling stake in Tempo Music Investments strengthens WMG's premium music rights portfolio, adding valuable compositions from powerhouse artists, including Bruno Mars, Twenty One Pilots, and Adele, while creating high-margin revenue streams that become increasingly accretive over time. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company's operational efficiency initiatives deliver tangible results, with operating cash flow dramatically improving to $69 million against negative $31 million in the prior year, demonstrating effective execution of the Strategic Restructuring Plan. WMG maintains a commitment to shareholder returns through consistent quarterly dividends of 18 cents per share, reflecting confidence in cash generation capabilities. With global operations spanning 50 countries, a catalog encompassing one million musical compositions, and strategic partnerships, Warner Music Group is well-positioned to capitalize on streaming growth and emerging opportunities while leveraging its artist roster for value creation.
Warner Music Group shares have plunged 5.6% year to date. The Zacks Consensus Estimate for the company’s 2025 earnings has remained steady at $1.09 per share over the past 60 days.
Price and Consensus: WMG
Live Nation Entertainment: As the world's leading live entertainment company, Live Nation demonstrates exceptional operational momentum. The company's first-quarter 2025 results showcase robust fundamentals with revenues of nearly $3.4 billion, operating income of $115 million, and adjusted operating income of $341 million, supported by more than $1.3 billion in operating cash flow. Record deferred revenue levels provide strong visibility, with Concerts event-related deferred revenues up 24% to $5.4 billion and Ticketmaster deferred revenues up 13% to $270 million. The company sold 95 million tickets with stadium ticket sales surging more than 80%, while 85% of the expected 2025 sponsorship is already committed.
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. Strategic expansion plans include adding 20 venues through 2026, creating capacity for a million incremental fans, positioning this Zacks Rank #3 (Hold) company for sustained growth.
Live Nation Entertainment shares have gained 16.8% year to date. The Zacks Consensus Estimate for the company’s 2025 earnings has moved north by 1.7% to $2.34 per share over the past 30 days.
Price and Consensus: LYV
News Corporation: This Zacks Rank #3 company is benefiting from robust financial performance and strategic transformation initiatives that position the company for sustained growth. The company's recent quarterly results showcase impressive momentum, with net income from continuing operations surging 67% to $107 million in third-quarter 2025, while total segment EBITDA increased 12% to $290 million and earnings per share doubled to 14 cents. Management's confidence is evident in the newly announced $1 billion stock buyback program, supplementing the existing $303 million authorization, which signals strong belief in the company's intrinsic value and commitment to shareholder returns.
The strategic focus on three core pillars — Dow Jones, Digital Real Estate Services, and Book Publishing — continues generating strong results, with Dow Jones achieving 6% revenue growth and 14% digital circulation revenue expansion. The successful sale of Foxtel to DAZN removed $724 million in debt while securing a 6% equity stake in the growing sports streaming platform, strengthening the balance sheet and enhancing capital allocation flexibility for future growth investments.
News Corporation shares have gained 6.8% in the past year. The Zacks Consensus Estimate for the company’s fiscal 2025 earnings has remained steady at 86 cents per share over the past 60 days.
Price and Consensus: NWSA
IMAX Corporation: This Zacks Rank #3 company demonstrates exceptional momentum across key business metrics in 2025. The company reported strong first-quarter results with revenues climbing 10% year over year to $87 million and net income surging 52% to $8 million, while CEO Rich Gelfond forecasts record-breaking $1.2 billion in global box office receipts for 2025. IMAX shattered its Chinese New Year record, delivering $53 million versus the previous record of $34 million, representing a remarkable 57% increase.
The company's strategic advantages are amplified with an unprecedented run of eight consecutive "Filmed for IMAX" releases, capturing approximately 20% of the opening weekend domestic box office. Management raised full-year 2025 system installation guidance to 150-160 systems worldwide, supported by a robust backlog of 516 systems, while expanding its share repurchase program by $100 million. With adjusted EBITDA margins expected in the low forties, IMAX presents a premium growth story positioned to capitalize on evolving entertainment trends.
The Zacks Consensus Estimate for IMAX’s 2025 earnings has moved north by 1.8% to $1.16 per share over the past 60 days. IMAX shares have declined 1.8% year to date.
Price and Consensus: IMAX
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4 Film & Television Production Stocks to Watch on 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) , News Corporation (NWSA - Free Report) , Warner Music Group (WMG - Free Report) , and IMAX Corporation (IMAX - 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 #166, which places it in the bottom 33% 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 Aug. 31, 2024, the industry’s earnings estimate for 2025 has moved down 17.9%.
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 36% in the abovementioned period compared with the broader sector’s growth of 26.1%. The S&P 500 has risen 19.7% 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 2.53X compared with the S&P 500’s 6.04X and the sector’s 2.4X.
Over the past five years, the industry has traded as high as 2.81X and as low as 1.33X, recording a median of 1.95X, as the chart below shows.
Trailing 12-Month P/S Ratio
4 Film & Television Stocks to Watch Right Now
Warner Music Group: This Zacks Rank #2 (Buy) company presents compelling investment opportunities driven by strategic portfolio expansion and operational improvements, positioning the company advantageously in the evolving music landscape. The recent acquisition of a controlling stake in Tempo Music Investments strengthens WMG's premium music rights portfolio, adding valuable compositions from powerhouse artists, including Bruno Mars, Twenty One Pilots, and Adele, while creating high-margin revenue streams that become increasingly accretive over time. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company's operational efficiency initiatives deliver tangible results, with operating cash flow dramatically improving to $69 million against negative $31 million in the prior year, demonstrating effective execution of the Strategic Restructuring Plan. WMG maintains a commitment to shareholder returns through consistent quarterly dividends of 18 cents per share, reflecting confidence in cash generation capabilities. With global operations spanning 50 countries, a catalog encompassing one million musical compositions, and strategic partnerships, Warner Music Group is well-positioned to capitalize on streaming growth and emerging opportunities while leveraging its artist roster for value creation.
Warner Music Group shares have plunged 5.6% year to date. The Zacks Consensus Estimate for the company’s 2025 earnings has remained steady at $1.09 per share over the past 60 days.
Price and Consensus: WMG
Live Nation Entertainment: As the world's leading live entertainment company, Live Nation demonstrates exceptional operational momentum. The company's first-quarter 2025 results showcase robust fundamentals with revenues of nearly $3.4 billion, operating income of $115 million, and adjusted operating income of $341 million, supported by more than $1.3 billion in operating cash flow. Record deferred revenue levels provide strong visibility, with Concerts event-related deferred revenues up 24% to $5.4 billion and Ticketmaster deferred revenues up 13% to $270 million. The company sold 95 million tickets with stadium ticket sales surging more than 80%, while 85% of the expected 2025 sponsorship is already committed.
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. Strategic expansion plans include adding 20 venues through 2026, creating capacity for a million incremental fans, positioning this Zacks Rank #3 (Hold) company for sustained growth.
Live Nation Entertainment shares have gained 16.8% year to date. The Zacks Consensus Estimate for the company’s 2025 earnings has moved north by 1.7% to $2.34 per share over the past 30 days.
Price and Consensus: LYV
News Corporation: This Zacks Rank #3 company is benefiting from robust financial performance and strategic transformation initiatives that position the company for sustained growth. The company's recent quarterly results showcase impressive momentum, with net income from continuing operations surging 67% to $107 million in third-quarter 2025, while total segment EBITDA increased 12% to $290 million and earnings per share doubled to 14 cents. Management's confidence is evident in the newly announced $1 billion stock buyback program, supplementing the existing $303 million authorization, which signals strong belief in the company's intrinsic value and commitment to shareholder returns.
The strategic focus on three core pillars — Dow Jones, Digital Real Estate Services, and Book Publishing — continues generating strong results, with Dow Jones achieving 6% revenue growth and 14% digital circulation revenue expansion. The successful sale of Foxtel to DAZN removed $724 million in debt while securing a 6% equity stake in the growing sports streaming platform, strengthening the balance sheet and enhancing capital allocation flexibility for future growth investments.
News Corporation shares have gained 6.8% in the past year. The Zacks Consensus Estimate for the company’s fiscal 2025 earnings has remained steady at 86 cents per share over the past 60 days.
Price and Consensus: NWSA
IMAX Corporation: This Zacks Rank #3 company demonstrates exceptional momentum across key business metrics in 2025. The company reported strong first-quarter results with revenues climbing 10% year over year to $87 million and net income surging 52% to $8 million, while CEO Rich Gelfond forecasts record-breaking $1.2 billion in global box office receipts for 2025. IMAX shattered its Chinese New Year record, delivering $53 million versus the previous record of $34 million, representing a remarkable 57% increase.
The company's strategic advantages are amplified with an unprecedented run of eight consecutive "Filmed for IMAX" releases, capturing approximately 20% of the opening weekend domestic box office. Management raised full-year 2025 system installation guidance to 150-160 systems worldwide, supported by a robust backlog of 516 systems, while expanding its share repurchase program by $100 million. With adjusted EBITDA margins expected in the low forties, IMAX presents a premium growth story positioned to capitalize on evolving entertainment trends.
The Zacks Consensus Estimate for IMAX’s 2025 earnings has moved north by 1.8% to $1.16 per share over the past 60 days. IMAX shares have declined 1.8% year to date.
Price and Consensus: IMAX