In an endeavor to foray in to the digital media market,
Western Digital Corporation
) has launched WD TV Play, a versatile media player. This player,
when connected to a user's high-definition TV (HDTV), allows
playing popular internet channels, along with personal photos,
music and movies from different networked channels.
The device, which extends the existing portfolio of media
players, offers a new app-based user interface allowing customers
to customize their entertainment experience. The gadget is priced
This device is particularly easy to setup and has full remote
control featuring pre-programmed buttons, proving one touch
access to the media apps. Companies across the globe welcome new
technologies and innovative media options at an affordable
Sensing this opportunity, companies like
Seagate Technology Plc.
) are initiating marketing strategies to capitalize on this line
of business. The media player market is expected to grow in the
range of 13% to 15% range over the next two years.
Moreover, Western Digital is coming up with a host of hardware
and software solutions, which are particularly designed to make
storage easier and more readily available. Additionally, we
believe that after the acquisition of Viviti Technologies
(formerly Hitachi GST) for $3.9 billion in cash and 25 million
shares of the company, WDC has strengthened its foothold in the
data storage business. Although the brands compete separately,
the deal should strengthen the company's revenue base in the
Apart from its association with larger media and personal
computer companies, we are also encouraged by Western Digital's
growing exposure in the small and medium business (SMB) space.
Recently, the company expanded its SMB product suite. We believe
that the company is well positioned to capitalize on the
increasing IT spending trend from the SMBs, which bodes well for
Currently, Western Digital has a Zacks Rank #3 (Hold).
Other stocks worth considering are
), with a Zacks Rank #1 (Strong Buy) and
) with a Zacks Rank #2 (Buy).
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SEAGATE TECH (STX): Free Stock Analysis
WESTERN DIGITAL (WDC): Free Stock Analysis
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