Home advantage

May 12, 2020

Home advantage
 

This downturn is very different from prior scenarios. It’s having a significant positive impact on home entertainment, which is driven by a near-global shutdown of entertainment alternatives including movie theatres, theme parks, restaurants, bars, casinos, etc.

The home entertainment landscape is also significantly different today as streaming television and gaming have seen massive growth over the past decade. A lot has fueled this growth, including improvement in technology, better connectivity, faster internet speeds and the necessity for traditional media companies to find alternative sources of revenue due to the acceleration in cord cutting. The result of all of these variables has been a 75% increase in gaming1, a 40% increase in mobile traffic volume and a 100% increase in Wi-Fi calling2, with some internet service providers seeing broadband data consumption up as much as 40% during business hours and 17% during the peak 6PM-11PM timeframe3.

The “stay-at-home” companies that benefit the greatest in this period include streaming TV and gaming, wireless and broadband cable providers who are benefitting from upgrades from DSL to cable and higher-priced data plans.

Leigh Todd, Senior Research Analyst, Mellon,

1 Fox news. Verizon CEO: Calls, texts hitting Mother’s Day levels amid coronavirus outbreak.24 March 2020. https://www.foxbusiness.com/technology/verizon-calls-texts-coronavirus-peak

2 Lightreading.com. AT&T network ‘performing quite well’ despite ‘signs of stress,’ CEO says. 23 March 2020. https://www.lightreading.com/services/atandt-network-performing-quite-well-despite-signs-of-stress–ceo-says-/d/d-id/758413?_mc=RSS_LR_EDT

3 Advanced television. Openvault: Covid 19sees business broadband up 41%. 20 March 2020. https://advanced-television.com/2020/03/20/openvault-covid-19-sees-business-broadband-up-41/

All investments involve risk, including the possible loss of principal. Certain investments involve greater or unique risks that should be considered along with the objectives, fees, and expenses before investing.

The technology sector involves special risks, such as the faster rate of change and obsolescence of technological advances, and has been among the most volatile sectors of the stock market.

Charts are provided for illustrative purposes and are not indicative of the past or future performance of any BNY Mellon Investment Management product.

Mellon is a global multi-specialist investment manager dedicated to serving our clients with a full spectrum of research-driven solutions. Mellon Investments Corporation (Mellon) is a registered investment adviser and an indirect subsidiary of The Bank of New York Mellon Corporation.

BNY Mellon Investment Management is one of the world’s leading investment management organizations and one of the top U.S. wealth managers, encompassing BNY Mellon’s affiliated investment management firms, wealth management organization and global distribution companies. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation and may also be used as a generic term to reference the corporation as a whole or its various subsidiaries generally.

Views expressed are those of the manager(s) stated and do not reflect views of the other managers or the firm overall. Views are current as of the date of this publication and subject to change. This information contains projections or other forward-looking statements regarding future events, targets or expectations, and is only current as of the date indicated. There is no assurance that such events or expectations will be achieved, and actual results may be significantly different from that shown here. The information is based on current market conditions, which will fluctuate and may be superseded by subsequent market events or for other reasons. Forecasts, estimates and certain information contained herein are based upon proprietary research and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Certain information contained herein has been obtained from sources believed to be reliable, but not guaranteed. Please consult a legal, tax or investment advisor in order to determine whether an investment product or service is appropriate for a particular situation. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. Mellon and BNY Mellon Securities Corporation are subsidiaries of BNY Mellon.

Not FDIC-Insured | No Bank Guarantee | May Lose Value

MARK-118499-2020-05-07