The digital revolution is changing the way people live. And for the cable TV industry, it’s been a nightmare unfolding. In fact, consumers and providers each need to trace back only a few years to recall when cable programming was the first, and sometimes only, option for quality broadcast viewing. That’s no longer the case, as a new player has emerged to challenge the billion-dollar cable companies stronghold on the entertainment industry – streaming video and streaming video channels.
Streaming video and streaming video channels, like Pluto TV, are plowing into the industry by bringing multi-channel platforms to viewers at prices that often start at zero. Worse yet for pay-to-play providers is that these free streaming services provide high-def quality, vast channel listings, and on-demand services. Adding more insult to cable packages, streaming channels are added regularly without the consumer feeling the price pinch once the “introductory” pricing period has expired.
As good as it is for viewers, it may also offer a compelling opportunity for streaming data-mining companies to fill the information gap and provide viewership data to those that need it most – media buyers and investment professionals. Despite market changes, the thirst for timely, accurate data to guide spending decisions remains a business priority. In fact, a comprehensive package of streaming viewership data might be worth its weight in gold as buyers struggle to effectively allocate their budgets to spend ad dollars on the right demographic market. One micro-cap company may provide a comprehensive solution.
Enter Peerlogix (OTCPINK: LOGX), an innovative next-generation streamming-data mining company that, for the past six years, has been leveraging its patent-protected streaming-data collection platform to provide a comprehensive real-time analytics package to entertainment and investment professionals. It’s also one of the only analytical packages that provide meaningful and actionable data to help executives make informed multi-million dollar decisions from reports that are updated daily and provide real-time forecasting analysis.
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Seizing A Substantial Streaming Data Analytics Opportunity
The market potential is enormous, and Peerlogix is already entrenched into a video-streaming market that reached more than $42.6 billion in 2019. And that number, while already significant, is expected to grow by more than 20.4% annually through 2027. Advertisers, programmers, and even hedge-fund managers are indeed paying close attention to the explosive change in viewership trends. And, their attention is primarily focused on finding the type of product Peerlogix specializes in producing.
The mission at Peerlogix, in particular, is to create and sell real-time analytical data sets to clients that provide a comprehensive set of analyses to guide decisions related to ad-spends, content purchasing, and investment. Each report’s depth is generated from viewership data of more than 50,000 premium TV shows and movies across more than 180 million households as streamed on virtually all of the mid and long-tail OTT networks. That reach has helped Peerlogix establish a massive collection of data, a library that houses historical and current content.
Compare that household reach to traditional week-old Nielsen (NYSE: NLSN) reports that use roughly 22,000 households to prepare its national, weekly industry report, and it’s apparent that Peerlogix is pioneering a new measure of streaming data collection that is invaluable to its broad range of users. Moreover, the barriers to entry in the streaming data collection space are high, especially when the Peerlogix platform is patent protected for data collection processes, OTT database integration, and insight development algorithms. That IP portfolio on its own is a value-creating asset that can drive growth in the coming quarters. But when combined with what those patented creations can do, the prospects for near-term growth get brighter.
If information is power, then those that can provide it often become hot commodities to professionals at almost any cost- as long as it allows for a meaningful return on investment. Peerlogix is well-positioned to fill that demand by observing, cataloging, and analyzing a massive amount of raw OTT viewership data. Once the information is collected, it is collated and packaged into unique data-set packages, both pre-constructed and customized, to create actionable value across an evolving and expanding set of industries. Those reports provide new data each day and are often placed on a decision makers desk before they enter the office. They can also target diverse sectors.
Media buyers, for instance, utilize Peerlogix’s OTT viewership data to target advertising campaigns directly to households streaming OTT TV shows and movies. This data allows users to base purchasing decisions on real-time viewership behaviors that take into account the entire spectrum of ‘cord-cutters’ as targeted advertising audiences across the digital advertising landscape. Remember, too, the report is generated from more than 180,000,000 households (180 million).
“Content acquisition insights” is another substantial market opportunity for the company. In that respect, larger OTT platforms, like Pluto TV, can leverage PeerLogix’s streaming viewership data to analyze content and programming demand trends worldwide to drive content procurement and purchasing decisions. The combination of real-time and historical data provided can be critical to their profitability, and it enables them to generate a better return on content investment. Moreover, the models that Peerlogix offers allows content providers to buy low and sell high, as proprietary algorithms can indicate growth in viewership demand that can drive the highest number of subscribers with the least amount of churn.
The platform’s “entertainment investment insights” are valuable tools that deliver timely, real-time data to investment companies looking for an edge. While information is power, time is money. Consider the advantage a hedge fund would have if they had information about major entertainment and service providers before it hit the market. With Peerlogix, they can get it.
In July, for instance, Netflix delivered what the street considered disappointing earnings. Subsequently, the stock lost roughly $19 billion of its market cup just four days later. Although those results were a surprise to Wall Street, the Peerlogix platform may have kept some clients in the black by showing real-time trends for almost every major broadcaster. That data comes from algorithms that have proven to be predictive of viewership trends on subscription and non-subscription streaming service platforms. The information provided in the reports unlocks significant insights for those focused on investing in companies with substantial streaming services or in the entertainment companies creating video content.
Hence, with the strategy at Peerlogix to create shareholder value from a mix of each unique product package, a substantial value opportunity may be exposed when comparing the company’s current market cap to the dollar size of the market. After all, markets trade with a forward-thinking bias, so maybe that means that Peerlogix is one of those under-the-radar opportunities. Better still, perhaps the opportunity is a combination of the two, which makes the investment consideration more compelling for near and long-term returns.
Start Of A Streaming Video Data-Mining Company
When evaluating the opportunity for Peerlogix, the current market-cap valuation may be ignoring the elephant size market opportunity in the room. And when the vision of founder and CEO William Gorfein fully deploys the platform’s arsenal, that may change.
As a condensed version, Peerlogix was born after Mr. Gorfein recognized that the streaming revolution was on the verge of cannibalizing DVD sales across the board, especially in the most commoditized content. The problem, though, was that these high-paid executives could not figure out why this was happening. However, what they didn’t see was apparent to William Gorfein. There was a need for a methodology to be developed to observe and catalog global streaming consumption patterns to predict what content would be most successful. He created the platform – and patented the process.
Fast forward six years, and Peerlogix has built industry-leading, ground-breaking technology that can track live streaming content and analyze, catalog, and correlate various attributes of viewed movies and TV shows. Further, no other company can provide comprehensive, real-time viewership tracking data generated from millions of streaming video content watchers. Realistically speaking, it’s a competitive advantage on several levels.
Thus, at roughly ten cents per share, there appears to be considerable value yet to be credited. And in an industry that tends to grow through acquisition, Peerlogix may also stand out as an attractive partner to a rating company that needs to enter the 21st century of data collection.
Will Traditional Ratings Companies Become Obsolete?
The question on investor’s minds is whether companies like Nielsen Holdings, who offer delayed data services, will become obsolete. After all, their current $5.3 billion market cap is just a shadow of its former $7.1 billion valuation at the start of 2020. Or, can growth by acquisition into the streaming viewership data market rekindle the spirits of decades-old companies. Those questions may be answered sooner rather than later.
Not to beat down on Nielsen, but investors are starting to realize that the Nielson data-mining model may be evaporating along with its share price. That realization, whether accurate or not, certainly contributed to an almost $2 billion cut from its market cap. But, like in most market rotation, a winner eventually emerges and is sometimes crowned as a new champion. Peerlogix is willing to prove that they are worthy of more attention, and maybe earn a sizable share of the market’s billion-dollar potential along the way.
As it stands, Peerlogix is more than capable of meeting the challenges of the new demands created from the streaming video industry. In fact, for the type and depth of service they provide, they may be the best option in the business. That said, recognizing the value opportunity now may create even greater rewards later.
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