A big shift in the TV & Movie entertainment viewing experience is (and has been) in the works for a while now. The recent data released on the 2011 movie ticket sales numbers shows the gradual decline in movie theater attendance:
There are certainly several different things that can be looked upon as the cause of this shift – and one of those is the vast improvement in the television experience in the home. LED Flat panel televisions, high-speed Internet access for streaming movies and TV shows, and Blue-Ray DVD movie technology.
One of the key players in this shift is $DTV (Direct TV). Here is a recent Weekly chart showing the stock’s performance:
The stock has recently pulled back to the 100 day moving average and presents a nice buying opportunity. For the pairs trade component on the short side, I bring you $RGC (Regal Entertainment), a Daily chart:
This is viewed a long-term bet that movie attendance continues to decline and the adoption of cable/satellite technology in the home continues to increase.