Trading the Streaming Wars
Netflix is the most famous and prominent streaming company and its stock started the year at $321 and went to a high of $575 with a current price of $501. Netflix has risen to approximately 180 million subscribers around the world. Their yearly profits exceeded $20 billion a year in 2019. Netflix creates its own content as well as streams content it buys but is facing competition for content and subscribers from major market players.
Amazon is one of the three companies to break the trillion dollar market value (along with Apple and Microsoft-though depending on stock price they bounce above or below that level at times).
Amazon had revenue of over $280 billion in 2019 and its Amazon Prime streaming is just a part of its online retail marketing . Amazon has grown to a workforce over 1 million employees worldwide adding over 400,000 new employees in 2020. Its stock started at $1,784 in 2020 and dropped to $1,626 during the spring crash (a modest drop of about 10% where some stocks dropped 30% or more) and rose to a high of $3,552 with a current price at about $3,100. Amazon Prime subscribers’ numbers at 150 million are close to Netflix’s numbers with less free content but more access to buy and rent content. Prime streaming is part of Amazon Prime total retail package.
Apple started this year with a price of $73 dropped to $53 before having a 4 to 1 split in August at a price of $103 rising up to $127. Apple launched its streaming service this year and Apple Plus TV has over 30 million subscribers. With the split Apple was one of the best performers of the FAANG stocks in 2020.
AT&T owns HBO and its streaming service HBO Max. It had the least impressive returns of the streaming companies starting the year at $38.86 with a current price of $31.46.
Last, but not the least is Disney and its Disney Plus streaming service.
Disney started 2020 at $144 a share and dropped to $86 due mostly to its parks being closed due to COVID. Disney launched Disney Plus and reached 86 million subscribers in one year (almost ½ that of Netflix) and it owns huge brands like the Star Wars franchise, Marvel superheroes like the Avengers, ABC TV, ESPN, a large part of Hulu and its theme parks.
Disney shares rose to a current high of $154.69 from almost doubling its price since the spring COVID crash in US markets. Shares could increase dramatically when its parks start reopening in 2021 or 2022 or as it grabs a larger share of the streaming market. Disney announced that they are targeting at LEAST 230 million subscribers in the next four years.
Disney reported almost $70 billion USD in revenue in 2019 250% more than Netflix and in 2020 became one of Netflix’s largest competitors. Previously Disney had Marvel series and Marvel movies on Netflix like Daredevil, Jessica Jones, the Punisher, Iron Fist and the Defenders as well as all of the Avengers related movies. With its own streaming service that content left Netflix for Disney plus streaming. Disney just announced ten new Marvel and a ten new Star Wars series to exclusively run on Disney Plus.
To see if any of these assets fit your investment goals, consider consulting with a trading specialist.