Media companies have gained traction since last year on increased investor interest in media amid widespread remote life and work styles. And as governments take steps now to ensure fairer remuneration by tech giants to media companies for their content, we think industry leaders Fox Corporation (FOXA), News Corporation (NWSA), and AMC Networks (NASDAQ:AMCX) could deliver spectacular gains. Read on.Media companies have been capitalizing on pandemic-driven tailwinds over the past year. Many companies increased their product offerings to appeal to the masses, as people were locked down at home. The recent, rapid spread of the COVID-19 Delta variant should allow entertainment and media businesses to benefit from strong demand for their products and services as people again limit their outdoor activities.
Furthermore, in February, the U.S. Congress announced its plans to re-introduce the Journalism Competition and Preservation Act. Following Australia's example, the bill requires tech giants, such as Alphabet, Inc. (NASDAQ:GOOGL) and Facebook, Inc. (NASDAQ:FB), to pay media companies for broadcasting their news. If passed into law, the bill should boost media companies’ profit margins significantly. The global media market is expected to grow at a 10.4% CAGR to $6709.40 billion by 2030.
Thus, we think media giants Fox Corporation (FOXA), News Corporation (NWSA), and AMC Networks Inc. (AMCX) could be solid additions to one’s investment portfolio now.