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Will Streaming Services' Impressive Show Continue in 2021?
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After a great 2020, video streaming services are expected to witness an equally impressive 2021. The coronavirus pandemic has already done enough damage to U.S. media companies, with theatre halls closed and shooting of big-ticket project getting deferred indefinitely. And if that wasn’t enough, 2020 saw some big companies foraying into the video streaming business.
This saw user growth soaring for video streaming services in 2020. Overall, 2020 saw both small and big players fighting to increase their captive audience. Also, companies have now started designing shows and movies with plans for OTT releases given that the pandemic is still preventing people from visiting theatres.
Great Year for Video Streaming Services
According to a Wall Street Journal analysis of data from market-research firms MoffettNathanson LLC and HarrisX, the biggest streaming services in the United States are expected to finish the year with a combined user number of more than 50% from the previous year.
Video streaming services enjoyed a captive audience as millions stayed home on fears of the coronavirus. In fact, the analysis says that instead of biting into each others’ subscribers, it was a year of coexistence for video streaming companies.
On average, U.S. households now have 3.1 streaming services compared to 2.7 in 2019, according to Kagan, a media research group within S&P Global Market Intelligence, as reported in WSJ. Moreover, three in every four household subscribe to at least one video streaming service.
Streaming Services Set to Grow in 2021
A number of video streaming services were launched at the end of 2019 and a couple of more in 2020. Most of them have been big gainers as thousands of subscribers got added within weeks. Moreover, streaming services were already giving pay TV and movie studios a run for their money with more people shifting to OTT platforms.
Netflix, Inc. (NFLX - Free Report) has been the biggest gainer during the pandemic, with its subscribers growing as a faster rate than its rivals initially. It has been spending aggressively on building its original show portfolio. The streaming giant had 195.15 million paid subscribers globally at the end of the third quarter, up 23.3% from the year-ago quarter. Netflix carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Walt Disney Company’s (DIS - Free Report) Disney+ was launched only in 2019, a few days after Apple, Inc. (AAPL - Free Report) launched Apple TV+. However, it didn’t take long for both the companies to attract subscribers. Interestingly, Disney didn’t displace existing services but continued to grow its subscriber base.
In fact, Disney told investors that it would show over 80% of the 100 titles it releases each year on Disney+, which was enough to lure more subscribers. Similarly, AT&T Inc. (T - Free Report) owned WarnerMedia, which launched HBO Max only a few months back in 2020 when the pandemic was at its peak, announced that in 2021 it will stream all its movies online the same day they release in theatres.
Comcast Corporation’s (CMCSA - Free Report) Peacock, which too launched only a few months back, has had a healthy response without displacing existing subscribers.
According to investors.com citing a Leichtman Research Group report, the first three quarters of 2020 saw all big pay-TV service providers losing 3.75 billion subscribers.
Moreover, many media companies that have been waiting to release their movies in theatres have started to release them on OTT platforms, which have further been helping the streaming industry.
Needless to say, almost all video streaming services companies have been witnessing a surge in new users and subscription. And this is likely to continue given that people are still hesitant to step out of their houses.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
Image: Bigstock
Will Streaming Services' Impressive Show Continue in 2021?
After a great 2020, video streaming services are expected to witness an equally impressive 2021. The coronavirus pandemic has already done enough damage to U.S. media companies, with theatre halls closed and shooting of big-ticket project getting deferred indefinitely. And if that wasn’t enough, 2020 saw some big companies foraying into the video streaming business.
This saw user growth soaring for video streaming services in 2020. Overall, 2020 saw both small and big players fighting to increase their captive audience. Also, companies have now started designing shows and movies with plans for OTT releases given that the pandemic is still preventing people from visiting theatres.
Great Year for Video Streaming Services
According to a Wall Street Journal analysis of data from market-research firms MoffettNathanson LLC and HarrisX, the biggest streaming services in the United States are expected to finish the year with a combined user number of more than 50% from the previous year.
Video streaming services enjoyed a captive audience as millions stayed home on fears of the coronavirus. In fact, the analysis says that instead of biting into each others’ subscribers, it was a year of coexistence for video streaming companies.
On average, U.S. households now have 3.1 streaming services compared to 2.7 in 2019, according to Kagan, a media research group within S&P Global Market Intelligence, as reported in WSJ. Moreover, three in every four household subscribe to at least one video streaming service.
Streaming Services Set to Grow in 2021
A number of video streaming services were launched at the end of 2019 and a couple of more in 2020. Most of them have been big gainers as thousands of subscribers got added within weeks. Moreover, streaming services were already giving pay TV and movie studios a run for their money with more people shifting to OTT platforms.
Netflix, Inc. (NFLX - Free Report) has been the biggest gainer during the pandemic, with its subscribers growing as a faster rate than its rivals initially. It has been spending aggressively on building its original show portfolio. The streaming giant had 195.15 million paid subscribers globally at the end of the third quarter, up 23.3% from the year-ago quarter. Netflix carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Walt Disney Company’s (DIS - Free Report) Disney+ was launched only in 2019, a few days after Apple, Inc. (AAPL - Free Report) launched Apple TV+. However, it didn’t take long for both the companies to attract subscribers. Interestingly, Disney didn’t displace existing services but continued to grow its subscriber base.
In fact, Disney told investors that it would show over 80% of the 100 titles it releases each year on Disney+, which was enough to lure more subscribers. Similarly, AT&T Inc. (T - Free Report) owned WarnerMedia, which launched HBO Max only a few months back in 2020 when the pandemic was at its peak, announced that in 2021 it will stream all its movies online the same day they release in theatres.
Comcast Corporation’s (CMCSA - Free Report) Peacock, which too launched only a few months back, has had a healthy response without displacing existing subscribers.
According to investors.com citing a Leichtman Research Group report, the first three quarters of 2020 saw all big pay-TV service providers losing 3.75 billion subscribers.
Moreover, many media companies that have been waiting to release their movies in theatres have started to release them on OTT platforms, which have further been helping the streaming industry.
Needless to say, almost all video streaming services companies have been witnessing a surge in new users and subscription. And this is likely to continue given that people are still hesitant to step out of their houses.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>