Digital, TV Increasingly Hand in Glove: Pro
Television content is becoming increasingly dependent on digital platforms to enhance distribution and profitability, an analyst told CNBC on Wednesday, which could hasten the day that consumers "cut the cord" on TV altogether.
The proliferation of social media platforms such as Twitter and Facebook "is good for media content because it increases the demand from heavyweights" such as Apple and Amazon for TV shows and movie content, said Anthony DiClemente, a media analyst at Barclays, to CNBC's "Squawk on the Street."
"We think that moving forward, all the tablets and devices that are out there expands the point of purchase for media," DiClemente said. "That bodes well for media as long as it's not too much content that people cut the cord," he added, referring to consumers' willingness to completely break away from television in favor of digital and online entertainment.
"The theme is that TV content has real value," DiClemente added. "You've got upside from digital and international syndication … serialized content lends itself well to platforms like Netflix and Hulu."
Netflix, the analyst said, is "moving toward exclusivity" in a way that is making its business model more profitable.
"They are making it…so that you must carry Netflix if you want to get" exclusive content of some of TV's most popular shows, he said. "Netflix is carving out that niche."
—By CNBC's Javier E. David
Anthony DiClemente owns none of the stocks mentioned in this article, but Barclays has an investment banking relationship with News Corp. and Time Warner. The bank also owns Netflix stock in its portfolio.