A David and Goliath battle may be taking shape- pitting micro-cap company Peerlogix (OTCPINK: LOGX) against industry heavyweight Nielsen Holdings (NYSE: NLSN). The winner of that technological battle may be in the best position to emerge as a leader in providing the most current, comprehensive, and predictive streaming-data viewership analytics to a long list of professional clients. Many are predicting that Peerlogix will emerge victorious.
Why the battle for streaming dominance? Because consumers have found a more convenient, less costly, and high quality alternative to cable TV– streaming video content and channels. And that shift in consumer demand is not only creating a potential revenue-losing nightmare for cable TV providers like Comcast (NYSE: CMCSA) and AT&T (NYSE: T), it is also exposing a massive opportunity for companies like Peerlogix to fill the gap created by the need for real-time viewership analytics.
Moreover, despite the change in viewership habits, the one thing that has not changed is media buyers need to place billions in ad dollars targeting specific audiences and demographics. Peerlogix can meet that challenge, and add to it by analyzing viewership data from roughly 180 million households and more than 50,000 premium TV shows and movies. That compares to Nielsen Holdings, who generally utilizes 22,000 homes to offer its suggestion of where advertisers should spend their money. In apples to apple comparison, one may be losing its taste.
Streaming-Video Is Taking Huge Market Share
While YouTube may have been the pioneer in streaming video content, it also opened the door to massive enterprises to take advantage of a multi-billion dollar market opportunity. Streaming video channels, like Pluto TV, is a prime example of the evolution. They deliver a multi-channel streaming video platform to viewers at prices that start at zero. At last check, they provided viewers with more than 300 channel listings and on-demand options that include top movies, access to syndicated sitcoms and educational content, and an extensive listing of news channels from major national broadcasters. That may be why ViacomCBS (NASDAQ: VIAC) purchased the streaming channel for a reported $340 million in 2019. They see the writing on the wall.
But, as good as it is for viewers, a compelling opportunity for streaming data-mining companies can also be substantial. That’s because, despite market changes, the thirst for timely, accurate data to guide multi-billion dollar ad-spending and investment decisions remains hugely relevant to industry clients. To Peerlogix’s advantage, they might be the only company that currently offer these clients a comprehensive package of streaming viewership data to help facilitate the effective allocation of budgets toward the right demographic market.
And Peerlogix is no rookie to the industry. For the past six years, they have been leveraging its patent-protected streaming-data collection platform to provide a comprehensive real-time analytics package to entertainment and investment professionals. They have also been credited for offering 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 and predictive analysis.
Streaming Data Analytics Represents The Future Of Viewer Ratings
Moreover, 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. Those numbers turn the heads of advertisers, programmers, and even hedge-fund managers that make money by making informed decisions. And, their attention is specially tuned to what Peerlogix can offer.
Peerlogix, at its core, creates and sells real-time analytical data sets to clients. That data is crucial to guide decisions related to ad-spends, content purchasing, and investment. Each report 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 that includes historical and current content- a differentiating feature from competitive platforms.
Further, compare that household reach to traditional week-old Nielsen reports that use roughly 22,000 households to prepare its national, weekly industry report, and it demonstrates 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 with the Peerlogix platform earning patent protection for data collection processes, OTT database integration, and insight development algorithms. That IP portfolio on its own may be worth considerable attention. Still, when combined with what those patented creations can do, the likelihood for Peerlogix’s near and long-term growth gets brighter.
Information Brings Power
As the saying goes, information is power. Subsequently, it’s fair to say that those that provide it can become hot commodities to professionals at almost any cost. Peerlogix draws on that information-hungry market opportunity by observing, cataloging, and analyzing a massive amount of raw OTT viewership data. After that 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. Perhaps most important, the Peerlogix reports update daily and provide a real-time snapshot on viewer and content-specific trends. Several business sectors can appreciate those reports.
For instance, media buyers 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 data in each report is generated from more than 180,000,000 households (180 million) and 50,000 premium TV shows and movies.
“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 and tables that Peerlogix provides may allow service providers to buy new content low and sell high, taking data from Peerlogix’s proprietary algorithms that can show not only growth in viewership demand but also the content that can drive the highest number of subscribers with the least amount of churn.
A third client opportunity may be the most intriguing opportunity. The platform’s “entertainment investment insights” provide valuable tools that deliver timely, real-time data to investment companies looking for investment-specific data. While information may bring 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 reported what the street considered disappointing earnings. Those results caused the stock to lose roughly $19 billion of its market cup just four days later. Although those results may have been 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. More specifically, its updated graphical representations in the reports likely showed Netflix in a real-time competitive analysis that showed declining viewership within some important properties. Thus, they may have been able to stay ahead of the trade and save millions in potential losses once the Netflix financials hit the market.
The excellent news for Peerlogix is that it can create shareholder value from a mix of each unique product package. Thus, with a multi-million dollar near-term market opportunity and a micro-cap share price of roughly $0.06 per share, a substantial value opportunity may be exposed. And with the company’s name getting more attention in sector newsfeeds, the valuation may soon follow the performance.
The Elephant In The Streaming Video Data-Mining Sector
Hence, when totaling the sum of the parts of the Peerlogix platform, the current market-cap valuation may be ignoring the elephant size market opportunity in the room. And as CEO William Gorfein starts to fully deploy powerful assets within the platform’s arsenal, that may change.
The company itself is a product of a forward-thinking vision and mission. 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 was not necessarily in that trend, but in the way that industry professionals were unwilling to react to the problem. However, what they were willing to accept as a passing trend, Gorfein took more seriously. That led to his creation of a methodology to observe and catalog global streaming consumption patterns to predict what content would be most successful. He created the platform – and patented the process. With due respect, that’s a super-simplified version.
Now, only six years later, 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 known company can provide what Peerlogix can offer- comprehensive, real-time viewership tracking data generated from millions of streaming video content watchers. It’s a competitive advantage that deserves significant recognition.
Thus, at roughly six cents per share, that attention may soon translate into value creation. And in an industry whose leaders like to grow through acquisition, Peerlogix may also stand positioned as an attractive partner to a rating company that needs to quickly enter the 21st century of data collection.
Will David Again Conquer Goliath?
The question on investor’s minds is whether a real-time data collection company like Peerlogix can conquer an industry giant like Nielsen Holdings, who offer delayed and historical data services. Some evidence suggests it’s already happening as Nielsen’s $5.1 billion market cap is just a shadow of its former $7.1 billion valuation at the start of 2020. Contrast that to growth in Peerlogix’s market cap and revenue stream, and maybe Peerlogix is gaining ground.
Admittedly, Peerlogix may only be starting its journey to becoming the “Nielsen” of the streaming-data viewership world. But with the company proving its value on several strategic fronts, that journey may take expedited pathways toward achieving a substantially higher degree of industry respect and financial success
Moreover, Peerlogix is already more than capable of meeting the challenges of the new demands created from the streaming video industry. In some respects, they may exceed expectations by targeting multiple market opportunities through its data-mining platform with distinct and valuable market applications. The remainder of 2020 may prove that point.
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