Top Streaming Stocks to Consider for Your Portfolio

The way consumers watch television, movies and other video content has changed dramatically over the past decade, as streaming platforms such as Netflix and YouTube increasingly replace traditional media as the preferred method of consumption. video. This shift may present opportunities for investors who can identify which streaming platforms can attract viewers and do so profitably.

Here’s a look at the top streaming stocks and an overview of the current streaming landscape.

Best Streaming Stocks

*Market value as of May 7, 2024.

1. Netflix (NFLX)

Netflix has been a pioneer in the streaming industry, leading a transformation in the way consumers are entertained through video. The company has around 270 million subscribers worldwide and is one of the few streaming companies making significant profits.

“Netflix is ​​the world’s leading streaming TV platform and now enjoys the economic benefits of market-leading scale,” said Morningstar analyst Matthew Dolgin. “We expect this position to persist throughout the next decade. »

  • Market value: $261 billion
  • Annual revenue: $33.7 billion

2. Alphabet (GOOG and GOOGL)

Alphabet, Google’s parent company, may not be the first company you think of when it comes to streaming, but its YouTube business is a major player in streaming, with global viewers watching more than one every day. billion hours of YouTube on their TV. The company’s YouTubeTV business, which is a streaming product similar to traditional cable, has more than 8 million subscribers.

  • Market value: 2.100 billion dollars
  • Annual revenue: $307.4 billion

3. Amazon (AMZN)

Amazon is another tech giant where streaming is not its core business, but Amazon Prime Video has become a significant streaming business and a major benefit for Prime subscribers. Amazon CEO Andy Jassy told shareholders the company was “increasingly convinced that Prime Video can be a significant and profitable business on its own.”

Amazon recently introduced advertising to Prime Video, which has over 200 million monthly viewers. The company also entered the live sports market through NFL Thursday Night Football games.

  • Market value: $1.96 trillion
  • Annual revenue: $574.8 billion

4. Disney (DIS)

Disney is one of the traditional media companies that is in the midst of a transition to streaming. Its core Disney+ offering has grown to around 118 million subscribers, where consumers pay an average of $7 to $8 per month for the service. Disney also owns ESPN, a longtime leader in sports entertainment that has its own streaming option, the ABC broadcast network, and the Disney Channel, which offers children’s entertainment.

“These are very valuable assets that give Disney advantages as the industry evolves, but challenges exist, and we do not believe the new media landscape will be as profitable as the previous one,” says Dolgin from Morningstar.

  • Market value: $192.1 billion
  • Annual revenue: $88.9 billion

5. Apple (AAPL)

Apple is best known as a maker of iPhones, iPads and Macs, but it has built a significant streaming business on Apple TV+. The company doesn’t disclose much about the streaming business, but estimates put its paid subscribers at around 25 million and more people likely access the service through promotions.

Hit shows like Ted Lasso have attracted viewers to the platform and the company has also branched into live sports, including Major League Baseball and Major League Soccer.

  • Market value: 2.8 trillion dollars
  • Annual revenue: $383.3 billion

6. Comcast (CMCSA)

Comcast is another traditional media company trying to move into a streaming future. It owns brands including NBC, Telemundo, Universal and Sky and its streaming service Peacock had 31 million paying subscribers at the end of 2023. Peacock generated a loss of around $2.7 billion in 2023.

Comcast has been aggressive in offering live sports on Peacock in order to gain new subscribers. It has an NFL playoffs set up on the streaming service in early 2024 and also offers college basketball and football games.

  • Market value: $151 billion
  • Annual revenue: $121.6 billion

7. Discovery of Warner Bros. (WBD)

Warner Bros. Discovery owns a variety of different media brands, including HBO and HBO Max, CNN, Discovery Channel, HGTV, TNT Sports and TBS. She also owns Harry Potter, Game of Thrones and Lord of the Rings.

Warner Bros. Discovery said it had 97.7 million direct-to-consumer subscribers at the end of 2023, but that number includes HBO Max, the old HBO, and Discovery+. The company was formed in 2022 when Discovery merged with AT&T’s media business.

  • Market value: 19 billion dollars
  • Annual revenue: $41.3 billion

8. Paramount Global (PARA)

Paramount Global owns various media brands including CBS, Nickelodeon, MTV, Comedy Central and many others. Its Paramount+ streaming business had more than 71 million subscribers at the end of March 2024.

The company is currently exploring offers on a possible merger, but there is no guarantee that a deal will be reached. Paramount has held discussions with Skydance Media and recently received an all-cash offer from Sony and private equity firm Apollo, according to reports.

  • Market capitalization: $9.0 billion
  • Annual revenue: $29.7 billion

Video streaming: the current landscape

Netflix launched its streaming service in 2007 and has become the undisputed leader in the sector. It has approximately 270 million subscribers worldwide (as of March 2024) and generated a net profit of $5.4 billion in 2023.

Other companies have seen Netflix’s success and jumped into the streaming business as well, although few, if any, have seen similar results. Traditional media companies such as Disney and Comcast have launched streaming services, but have mostly generated losses. Big tech companies like Apple and Amazon have used their massive cash reserves to create streaming services with varying degrees of success.

Just this week, Disney reported an increase of more than 6 million subscribers to its core Disney+ offering and said losses from its streaming business narrowed to $18 million in its most recent quarter, an improvement compared to the loss of $659 million in the same period last year. . Still, its stock fell about 10 percent after the company said it did not expect subscriber growth in the current quarter and that higher costs would hurt profitability .

Meanwhile, Paramount Global is considering buyout offers after struggling to build a profitable streaming business and its cable channels Nickelodeon and MTV are facing the impact of cord-cutting. Sony and private equity firm Apollo made a $26 billion all-cash offer in early May, according to the Wall Street Journal.

Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. Furthermore, investors are advised that past performance of investment products is not a guarantee of future price appreciation.