Seek out companies that have high market share in their primary markets - monopolies are often great for profits. Licenses, especially in broadcasting, also serve to reduce competition and keep profit margins high.
Seek out companies with a history of well-executed acquisitions that have been followed by higher margins.
A strong balance sheet enables media companies to make selective acquisitions without increasing the risk for shareholders or diluting the shareholders' ownership stake.
Look for candid management teams, a history of sensible acquisitions, and either conservative reinvestment of shareholders' capital or the return of capital to shareholders through dividends and stock repurchases.
Don't chase hits. Buying a stock because there's a lot of buzz about a hit movie or TV show rarely pays off.
Ref: The Five Rules for Successful Stock Investing by Pat Dorsey
Investor's Checklist: A Guided Tour of the Market...