As Streaming Wars Surge, Are These Stocks On Your Radar This Month?
For many years, Netflix was the only company that dominated the video streaming space. As the popularity of streaming rose, the company rose dramatically in value. However, it is difficult for any company to have the majority of the industry to itself. Last year, the ‘streaming wars’ began with the launch of Disney Plus.
Disney is one of the biggest entertainment companies in the world and its entry into the market has made it a far more competitive space. It should be noted, Apple came up with its own service and many are going to be launched this year.
However, it is interesting to figure out the prospects of Netflix and Disney stocks in this new landscape. It’s also important to look for a “picks and shovels” play in this arena as well. Since it’s become so dominated by multi-billion-dollar companies, the smaller firms stand to benefit if positioned correctly.
One of the most important things that need to be kept in mind is the fact that Netflix Inc (NFLX Stock Report) is still comfortably at the top of the pile as far as streaming companies go. The company has successfully eaten into the pay-TV space over the course of the past seven years. Despite the recent challenges faced by the company, Netflix has been able to add to its subscriber’s base.
On the other hand, Netflix has also pushed hard to expand its international subscriptions considerably over the past few months. That can boost its revenues significantly and in addition to that; the company will always have the option of introducing advertising in order to further boost its income. Hence, it would be a bit foolhardy to think that Netflix is a spent force simply because it now has competitors.
Fearless Films (FERL)
One of the lesser-known but just as important types of public companies to know in this arena are content providers. Without them, some of these juggernauts wouldn’t have much to offer. Many times, these companies are commissioned to create the “unique content” provided by the likes of Netflix and others. Similarly, some of these production houses already have a portfolio of projects that are able to be licensed.
Fearless Films (FERL Stock Report) is an independent full-service production company. The service scope specializes in short film and feature film production in addition to scriptwriting, copywriting, fulfillment and distribution. Since its inception, Fearless Films has been on the map as a top independent producer winning accolades at most major film festivals and is known to have a keen eye for emerging talent.
Most recently the company announced that it has agreed to terms with company founder Victor Altomare to acquire full interest in the The Great Chameleon film. Now, if you haven’t heard of this film, that’s ok because many other already have. The film has streaming distribution through Amazon Video (UK). It is also available for rent or purchase on Amazon Video, along with Google Play, iTunes, YouTube, and Microsoft XBox platforms. Imageworks Entertainment International, the agent for the film, recently obtained US distribution via Amazon US.
However, for all intents and purposes, Netflix has a serious competitor in the form of Disney Plus. As a company, Walt Disney Co (DIS Stock Report) is far more diversified but the company has invested a lot in its streaming service Disney Plus and this service is going to drive its growth over the coming years.
Following its launch in November, it got off to a brilliant start and signed up as many as 10 million customers. In addition to that, the sheer variety and volume on offer from Disney would insulate the company somewhat from mass cancellations following the end of any particular show.
It should be noted though that the company currently earns a lot more from the other businesses that it does from the $7/ a month that it gets from each Disney Plus subscriber.