text / Zhang Wei

Goldman Sachs believes that the value of media content has become more and more high, the traditional media companies and Internet giants a hotly contested spot, is also the most likely outbreak of local conflict.


TMT analyst Michael Ronen in the latest podcast that traditional media companies that use the Internet giant they spend a lot of cost making content to get advertising revenue, while they themselves only to a small part of the interests of the cake, and that the two party will appear in various areas of conflict. Ronen said:

it is worth noting that the giants are trying to create the experience of excellent products for consumers to quickly provide what you want and most concerned about things, in this work, they will be in the whole system of different parts of conflict.

Ronen Google’s valuation of up to $80 billion of YouTube, for example, it is said to build a powerful internal content production capabilities.

he said, by the rapid rise of mobile devices in the East, many traditional media company launched more and more content, but in Facebook, Snapchat and other social media platforms did not arouse enough attention, so the content is also needed in the commercial use of these distribution channels to find a better way.

at the same time, young consumers are more interested in celebrities, sports stars and other short video and live content, but also to promote the transformation of consumer demand side. Ronen said:

The content of

is becoming increasingly valuable, if can through the specific sports related rights and interests as well as some of the minority news content content mastery into proprietary assets, this value will be further enlarged, which not only by traditional media companies will be affected by the Internet Co and welcome wireless operators.

this trend has long been apple in the eyes. The British "Financial Times" at the end of May quoted sources said, in charge of iTune store and iCloud, Apple’s music business Apple executive Eddy Cue put forward the suggestions to the acquisition of Time Warner corporate strategy director Olaf Olafsson in a meeting at the end of last year. However, the discussion is only in the preliminary stage, apple CEO Cook and Time Warner CEO Jeff Bewkes did not participate.

Time Warner currently has a lot of quality assets. For example, the production of the "power of the game," "Silicon Valley" and "vice president" of HBO, Hollywood’s largest producer of Warner Bros. television, CNN, and "time" magazine, etc..

Financial Times analysis, time warner for apple is a suitable acquisition target. It and Disney are one of the few media companies that do not have a two-tier ownership structure and family holdings.