The trend that drove last year’s Top 5 best-performing stocks is affecting Home Building and new home construction. Last year’s top-performing stocks share one secret: consumer demand for entertainment means profitable growth. Home Building companies can use this trend to engage home buyers and sell more homes.
2015’s top performing stocks were dominated by these five home entertainment heavyweights:
5th place:
(Alphabet Inc) (GOOGL)
+47% in 2015
What drove their success?
Google’s entertainment reach includes YouTube (#1 streaming service in the world), Android (#1 mobile operating system), Chromecast (hardware and software for streaming video content), the Google Play Store (apps and games for Android users), and Google Play Music (over 30 million music tracks for purchase or streaming).
The acquisition of Songza enhances Google’s entertainment offering by transitioning Songza’s curated playlists and suggestion concierge into the Google Play Music service.
Google’s growth trajectory continues in 2016 with higher advertising, entertainment and mobile revenues.
4th place:
CABLEVISION
(CVC)
+54% in 2015
What drove their success?
Cablevision has grown to be the fifth-largest cable, internet and telephone provider in the USA. Their Optimum brand gives customers access to CBS’s over-the-top TV services, including CBS All Access and Showtime without charging them for a TV subscription.
Cablevision’s stability and size attracted a 22% premium for its owners this fall when Dutch telco Altice purchased them in a deal worth $17.6 billion.
3rd place:
ACTIVISION BLIZZARD
(ATVI)
+92% in 2015
What drove their success?
Activision Blizzard earned $500 million in one day with the release of “Destiny: The Taken King” on September 15, 2015. This was the highest-grossing video game launch in history.
Owners of the own the Call of Duty, Starcraft and Candy Crush video game franchises, Activision is “dedicated to creating the most epic entertainment experiences, ever.”
They have the largest game network in the world (over 500 million users) and they’re not limiting themselves to video game entertainment. Activision has started their own film studio to produce Warcraft and Call of Duty features with Disney and Legendary Pictures.
2nd place:
AMAZON
(AMZN)
+118% in 2015
What drove their success?
Amazon aims to transform media and entertainment – as it did the book industry – by offering exclusive entertainment content streamed via Amazon services and viewed on slick, bargain-priced hardware.
Like market-leader Netflix, Amazon’s Prime Video is now producing its own titles, including Alpha House with John Goodman and the new “Top Gear” show with Jeremy Clarkson, Richard Hammond and James May.
1st place:
NETFLIX
(NFLX)
+135% in 2015
What drove their success?
Netflix is dominating the streaming TV and movie market. Any bit of entertainment content from any connected device – this compelling offer won both customers and investors and drove Netflix to the top of the charts last year.
Their vision is to “become the best global entertainment distribution service.” To attract new subscribers, they’re adding more titles to their library, producing their own high-quality original programming and expanding to 190 different countries.
Capitalizing on Consumer Trends
The Millenial generation, currently between the ages of 19 and 35, recently surpassed Baby Boomers as the largest living cohort. Millennials are considered the “first generation of digital natives”.
Millenial consumption is driving the success of the entertainment industry. They love using internet and mobile technology to simplify and streamline their entertainment experiences.
93 percent of Millennial renters are planning to buy a home. Are you leveraging their demand for home entertainment to win sales? Does your offering position you as the first choice for prospective home buyers?
Levven Audio is a company that can help put these consumer entertainment and home ownership trends to work. Outperform your competitors by supplying entertainment choices consumers are excited to purchase.
