I was thinking, should a company like Coca-Cola get back into the movie business? Remember that it at one time owned Columbia. That didn't work out, but times have changed, and the industry is more vibrant than ever. Perhaps Coke could start its own studio and streaming service? You can use codes to subscribe or pay-per-view? Thoughts?
I don't know if the movie business is vibrant or profitable or a good investment, but I remember the days of yore when "conglomerates" were all the rage - until people realized that managing such far flung and disparate businesses under one roof was impossible, and spin-offs became all the rage.If I want to invest in a movie making enterprise, I'll look elsewhere. KO (and pretty much all other companies) should stick to what they know and do best.p.s. the only conglomerate I am aware of that seems to be the exception is BRK - but it isn't a conglomerate in the true sense of the word - Buffet buys companies that are well run, AND LEAVES THEM BE to continue doing so.
Mjolah, thanks for the reply.It's a good argument against the idea. Indeed, BRK is a unique investment beast. I'm wondering though if KO could maybe make some low-budget movies/series and then target them for theaters and/or services like NFLX. I think these days Hollywood has learned how to make compelling filmed stories but at reasonable cost because of technological advances. KO could start out slow, maybe as a YouTube-centered channel.It seems like there is a lot of original content demand out there, and perhaps KO could use its steady cash flow from its core beverage business and go for growth in the storytelling business. (McDonalds also seems like a company that could do that.)Again, though, your issue of challenges with conglomerates is well taken.
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