An updated edition of the July 30, 2025 article.

The way people consume entertainment has been revolutionized in the last twenty years, as audiences shift decisively from scheduled cable television to flexible, digital streaming platforms. What began as an emerging technology in the 1990s quickly scaled into a mainstream phenomenon with the launch of YouTube in 2005 and Netflix’s on-demand model in 2007. Since then, the combination of faster internet speeds and the rise of smartphones has reshaped viewing habits, turning streaming into the dominant mode of media delivery. Today, companies such as Tencent Music Entertainment Group (TME Quick QuoteTME - Free Report) , Disney (DIS Quick QuoteDIS - Free Report) , and Roku (ROKU Quick QuoteROKU - Free Report) anchor the industry’s rapid evolution and represent key investment stories within the space.

Streaming’s appeal lies in its instant, cross-device accessibility, ad-light environment and binge-friendly nature. To meet the rising demand, platforms continue to invest billions in original content, intensifying the competitive “streaming wars.” Ongoing innovation, from AI-driven personalization to global broadband expansion, has made streaming more engaging, while smart TVs and gaming consoles extend its reach into living rooms worldwide.

Research by Ampere Analysis estimates the global streaming market will generate $190 billion annually by 2029, supported by 2 billion subscriptions. While subscription models dominate, free ad-supported TV and hybrid offerings are gaining momentum. With live sports and interactive features boosting engagement, the sector presents investors with significant growth potential through pricing strategies, advertising, partnerships and international expansion.

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Tencent Music Entertainment Group, originally founded as the music subsidiary of Tencent Holdings, has grown far beyond its early role as a digital distributor. It now stands as China’s dominant online music and audio entertainment platform, supported by leading apps such as QQ Music, Kugou Music, Kuwo Music and WeSing. Its business has expanded into long-form audio, live streaming, concerts and artist services, underpinned by a dual-engine model that combines platform innovation with rich content creation.

The platform reaches more than 553 million monthly active users, with 124 million paying subscribers, representing a 22.5% paying ratio, a notable increase from prior years. This reflects the rising willingness of Chinese consumers to pay for premium experiences. At the higher end, more than 15 million Super VIP members drive incremental monetization through privileges like exclusive albums, superior audio and priority concert access.

Subscription services remain the cornerstone of growth, with average revenue per paying user (ARPPU) climbing to RMB 11.7. Management has highlighted continued SVIP expansion, bundled content offerings and closer artist partnerships as durable growth drivers. In parallel, advertising and the “fan economy” — spanning merchandise, concerts and community engagement — are expected to scale further.

Global expansion adds another layer of opportunity. High-profile concerts and collaborations with Korean and international labels reinforce TME’s ability to extend its cultural reach beyond China. Management views overseas concerts and cross-border co-productions as meaningful long-term contributors.

Armed with RMB 34.9 billion in cash reserves, TME is positioned to accelerate investments in AI-powered music tools, immersive sound technologies and social features like “bubble.” The company’s growth outlook is anchored by a balanced mix of subscriptions, advertising and fan-driven initiatives, ensuring resilience in a fast-evolving entertainment landscape. TME sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Disney made its streaming debut in 2019 with the launch of Disney+, which rapidly built a large subscriber base. Since then, the company has expanded its digital footprint and now operates Disney+, ESPN+ and Hulu, designed to cater to distinct audiences and content needs.

Disney’s streaming segment continues to show resilience, with 128 million Disney+ subscribers as of the third quarter of fiscal 2025. The platform added 1.8 million subscribers sequentially, demonstrating steady momentum despite competitive and macro headwinds. Together with Hulu, Disney’s combined subscriber base has reached 183 million, reinforcing its position as one of the largest players in the global streaming market.

A major catalyst lies in the upcoming integration of Hulu into Disney+. This unification is expected to deliver operating synergies, streamline user experiences and strengthen Disney’s edge against rivals. Management views bundled offerings and enhanced monetization strategies as levers to expand market share, while deeper integration of content libraries creates greater consumer stickiness.

Looking to the near term, Disney projects subscription growth of more than 10 million additions in the fiscal fourth quarter. The driver is its recently expanded distribution agreement with Charter Communications, which is set to bring Disney+ and Hulu to a wider pool of customers.

Sports streaming also stands out as a growth engine. The launch of ESPN’s direct-to-consumer service in August 2025 marks a pivotal step, backed by exclusive rights to WWE events and a landmark deal in which the NFL acquired a 10% stake in ESPN. This arrangement adds NFL Network and RedZone to ESPN’s portfolio while enhancing reach and distribution.

By integrating premium sports, entertainment franchises, family programming and general content into one ecosystem, Disney is broadening its addressable market. These initiatives support long-term growth in both subscriptions and advertising, reinforcing Disney’s competitive advantage in the evolving streaming landscape. DIS carries a Zacks Rank #3 (Hold).

Roku is the leading TV streaming platform provider in the United States, Canada and Mexico based on hours streamed. Since its 2008 beginnings as a streaming device manufacturer, the company has transformed into a comprehensive streaming ecosystem.

Roku is expanding its streaming household reach through strong demand for its devices, partnerships with major TV makers that embed Roku OS, and licensing deals with service operators. At the same time, advertising growth is accelerating, fueled by rising video ad impressions on The Roku Channel, a shift of traditional TV spend to streaming, and continued investment in its ad tech ecosystem.

The Roku Channel has become a key driver of engagement and monetization, reinforcing the company’s overall platform strategy. Streaming hours reached 35.4 billion in the second quarter of 2025, up 17.6% year over year. A growing content pipeline is expected to sustain this trajectory. By expanding both original and licensed content, The Roku Channel is deepening engagement, increasing ad inventory and supporting overall platform growth. ROKU has a Zacks Rank #3.

Roku’s platform fundamentals remain solid, underpinned by high user engagement, innovative monetization of its Home Screen, and expanding ties across the advertising and streaming landscape. With the Roku Home Screen reaching households with more than 125 million people across the U.S. daily, Roku has turned it into a powerful driver of engagement and subscription growth. Enhanced by AI-driven content recommendations, personalized features and an expanding lineup of Roku Originals, the platform continues to elevate the viewing experience. Strategic partnerships with leading brands such as Apple further underscore Roku’s growing influence within the streaming ecosystem.