LionTree’s Founder and CEO of investment bank, Aryeh Bourkoff has asked the media companies to buckle up and come with profit tactics and innovative ideas to remain in the market since in the coming years investors would be strict and less tolerant about companies giving average performance. Since the rising of the interest rates, deal making would be difficult and investors would as a consequence be less forgiving.
In an interview, he has made certain statements. According to that, he feels that in 2019, the traditional business based on hope and dream would be replaced by continuous flow of cash and valuation of money. The paradigms on which market and valuation were being considered till now will change the course in the coming year. Business would now be focused on a model that would be targeted directly to the consumer. Companies that can come up with charming valuations should be able to gain more benefit. The entire approach, however, needs many ad ups to be perfect and able to set to work. He has said that business is now amidst a situation where number of media companies is making investments so that they can approach the consumer directly and try to be at par with Netflix who have been leading the market for years now.
This will gradually lead to macro environment. Success would no more be a long term wait but a short term ability to prove themselves in the field. This will lead to the investors wanting to see results at the shortest possible term. Execution and target will henceforth need to be well focused. These should also be kept in mind by Disney and ESPN who have got into the new model of directly approaching the consumer. The instant winners would be the gaming companies who focus and change themselves in short notices in accordance to the taste of their consumers.