Investing in Streaming Service Stocks
New streaming TV options are launching at a frenzied pace. With many subscription services available, streaming entertainment has become ubiquitous in U.S. homes as consumers spend large quantities of time and money on streaming media.To get more news about 39bet-nhà cái uy tín-xổ số kiên giang-xổ số hồ chí minh-xổ số vũng tàu-xổ số bình dương, you can visit official website.
The COVID-19 pandemic accelerated the streaming entertainment trend. Stuck at home, millions of people in households around the globe signed up for a streaming service for the first time in 2020. As economies reopen following the pandemic, and consumers spend more time outside of their homes, there are still opportunities to invest in streaming. Many years of growth likely lie ahead for the streaming industry.
Which are the best streaming service stocks to invest in? What makes this relatively new industry so attractive? Keep reading to find out.
Top streaming service stocks
There are many ways to gain portfolio exposure to streaming services. Here we focus on the companies that are either pure plays or earning outsized returns on streaming.
The best streaming entertainment stocks include industry pioneer Netflix (NASDAQ:NFLX), entertainment giant Disney (NYSE:DIS), and the streaming platform leader Roku (NASDAQ:ROKU). Industry newcomers FuboTV (NYSE:FUBO) and CuriosityStream (NASDAQ:CURI) also make this list.
1. Netflix
As the company that got the streaming TV party started, Netflix remains by far the largest streaming pure play, with more than 200 million subscribers. Net new subscribers in the U.S. have slowed in recent years, but Netflix is growing quickly internationally. Also a prolific producer of TV shows and movies, Netflix is constantly adding content in local languages as part of its strategy to continue growth abroad.
Producing entertainment isn’t cheap, though. Consequently, Netflix has generated negative free cash flow for the past few years. However, the company expects to achieve break-even results this year and begin generating positive free cash flow in 2022.
2. The Walt Disney Company
The much-anticipated Disney+ streaming service was launched in late 2019, just in time for the pandemic. It added tens of millions of subscribers worldwide in its first year and quickly became the second-largest subscription streaming service after Netflix. Disney also owns the streaming services Hulu and ESPN+ in the U.S.
Combined with its own extensive catalogue of entertainment and assets acquired from 21st Century Fox, Disney has become a formidable player in the streaming TV space. Despite being a legacy media and entertainment company, streaming services already account for more than a third of Disney’s valuation.
Due to content creation expenses, Disney doesn’t expect to begin turning a profit on Disney+, Hulu, and ESPN+ for years. The company's primary focus is adding subscribers. However, Disney is still profitable overall. The company’s vertically integrated operations -- spanning theme parks, merchandising, broadcast television, and in-house video production technology -- give it plenty of cash to invest in new content without generating excessive losses. During the pandemic, Disney also quickly reorganized to permanently enable more flexible content distribution.
3. Roku
Streaming TV has been a boon for the smart TV and streaming device maker. Roku has become the largest TV platform in the U.S., distributing content via The Roku Channel and acting as a hub for households to manage all of their streaming subscriptions.
Roku distributes its smart TV software and streaming devices at minimal cost, making money instead on advertising and by managing subscriptions. By acquiring content from the now-defunct short-form video service Quibi, Roku is also making a foray into original content creation. In addition, the company acquired Nielsen’s Advanced Video Advertising segment in order to maximize its streaming ad platform’s effectiveness.
Acting as the gateway into internet-based TV for tens of millions of households, Roku is a top way to invest in the growing streaming industry.
4. fuboTV
Streaming service fuboTV, a relative newcomer to the streaming media industry, completed its initial public offering (IPO) in the fall of 2020. This small service has gained popularity as a live TV platform, and it’s a top option for those who want to watch live sporting events.
Building on its strength in sports media, fuboTV acquired Balto Sports in late 2020 to jumpstart its entry into the burgeoning sports betting industry. It subsequently acquired the sportsbook platform Vigtory in March 2021 and launched its own sports betting app in November 2021 that integrates with the streaming service.
