Written by: Roshan Dwivedi
Film-makers DreamWorks and Lions Gate are poised to benefit from an array of positive catalysts, including increased demand for movie rights and the growth of the Asian film market.
As a result, both DWA stock and LGF stock should rise significantly over the next year, and longer-term investors should snap up their shares. One of the trends boosting DWA and LGF stock is the surge in selling videos online.
The number of companies providing entertainment content over the Internet is growing rapidly. Sony and DISH Network have launched Internet TV services in recent months, and Overstock.com and Apple are expected to enter the sector soon.
Moreover, incumbent Internet TV operators, including Hulu, Netflix and Amazon, are constantly looking to purchase the rights to more movies. In this high-demand environment, the prices of the rights to top-notch movies are bound to rise significantly, boosting the bottom lines of LGF and DWA,
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