"It’s not just DVD sales that will be affected. Sales of Blu-ray and DVD players will also likely be affected. In fact, it appears that we’ll no longer need any type of device to store or play music and movies. If movies and music are wholly digital, and if we rent rather than buy, there’s no real need to store anything.
How long will it be before the local video store disappears? It’s likely they won’t be around much longer.
On the up side, this should be good news for Telecommunications companies such as Telstra Limited (ASX: TLS), Optus, Vocus Communications Limited (ASX: VOC), Amcomm Telecommunications Limited (ASX: AMM), TPG Telecom Limited (ASX: TPM), iiNet Limited (ASX: IIN) and Macquarie Telecom Group Ltd (ASX: MAQ), and should be a fillip to online streaming services such as Quickflix Ltd (ASX: QFX). Increased demand for internet & mobile data & services is good news for these companies".
MAQ Price at posting:
$9.50 Sentiment: Buy Disclosure: Held
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