The Rise Of New Services Has Created A Battleground For Streaming Stocks
Over the past half a decade or so, the world of entertainment changed dramatically with the emergence of video streaming service Netflix Inc (NASDAQ: NFLX). As cord-cutting grew, Netflix’s continued to corner more and more of the streaming market.
However, that is now going to change with the emergence of competing for streaming services from other corporate giants like Disney and it has been projected that the industry is going to be worth $124.57 billion by 2025. That being said, there may be ample opportunity for investors. Here is a look at a few tech stocks to watch that could be set to prove themselves on this new battlefield.
Fearless Films Inc. (FERL) Aims To Tackle Over The Top Content
Fearless Films Inc. (FERL) is a full-service production company with award-winning upper management. The company specializes in producing both short and feature films as well as scriptwriting and distribution.
Fearless Films has been developing its operations recently which has caught the interest of new investors. One development was a recent news press relating to an agreement with Victor Altomare, the Founder and President of Fearless. The company entered a Letter of Intent to acquire the rights of up to 12 movies from a library held by Mr. Altomare. The price of the acquisition is to be determined at a later date.
On October 31, Fearless Films (FERL) announced that further to its initial press release on the 16th, the Company has selected The Lunatic as the first film to be selected for appraisal and final negotiation. Fearless will engage an international accounting and advisory firm with a strong film industry practice to provide an independent valuation of the film, following which the company will enter into final negotiations on the purchase.
Companies like Fearless are looking to fill the content needs of companies streaming companies. Jeffrey Cole explained how Apple, for example, needs new content, “I think entertainment’s going to become a key element of Apple’s business. For them, spending $2 billion on [original content] is just dabbling. If they like what they see, I think they’ll have a $10 billion budget.” This is a massive market potential that Fearless Films is looking to capitalize on.
Walt Disney (DIS)
The first one to consider is the entertainment giant Walt Disney Co (NYSE:DIS), which is all set to launch its streaming service Disney+. Many analysts believe that Disney could prove to be one of the best stocks to pick when it comes to video streaming stocks and reasons are manifold.
The company owns one of the most extensive archives in the industry and has also acquired content steadily. Additionally, it owns a controlling stake in Hulu as well. The purchase of 21st Century Fox may have put a bit of pressure on its earnings. They went down by 6% in the first three quarters of the year. But it boosted Disney’s archives considerably. Its earnings announcement could be a major event this week.
The other company that is expected to go strongly over the coming years is Roku Inc (NASDAQ:ROKU). It offers a platform that can access all different streaming services. The company has grown impressively over the past year or so and that has continued into 2019. Roku might not have made a meaningful profit yet but it has grown considerably.
In Q2 2019, its revenues hit $250.1 million and recorded growth of 59%. Gross profit for the same period soared 47% to $114.2 million but at the same time, the company’s investments in research pretty neutralized the gains. The company has grown rapidly and it is reducing its losses progressively as well. Analysts estimate that the losses for Q3 are going to be $0.28 per share.
Pursuant to an agreement between Midam Ventures LLC and Fearless Films Inc. (FERL), Midam has been paid $94,980 by Fearless Films Inc. (FERL) for a period from October 1, 2019 to November 17, 2019. We may buy or sell additional shares of Fearless Films Inc. (FERL) in the open market at any time, including before, during or after the Website and Information, to provide public dissemination of favorable Information about Fearless Films Inc. (FERL). Click Here For Full Disclaimer.