Technology advances (most recently, Sling Media’s laptop access to DirectTV accounts from anywhere in the world through Sling Box), may improve consumers’ access to media but can negatively impact media companies valuation. “Filmed-entertainment companies must now demonstrate the ability to generate nearly $1 billion in revenues to be valued at $1.5 billion,” says David Davis, on his FMVEntertainment news blog, “while some technology companies (taking YouTube as the most recent high-profile example) are sold for $1.5 billion before they make a dollar of profit.”
Forecasting feature film performance in the DVD market is another area where the “old valuation math has gone out the window,” now that film companies can price titles for initial consumer purchase. In recent weeks, Davis’ blog has focused on valuation techniques to use in forecasting filmed-entertainment entities, all in preparation for BVR's next telephone conference, “Valuing Entertainment Assets.” Additional topics include valuation of television series, music properties, and the differences between appraising static catalogs and going-concerns. Tune in tomorrow, August 9, 2007, by registering here.