(Please enjoy the latest investment insights from the POWR Trends newsletter).
For over 50 years, cable television was the best way to watch quality shows geared toward particular audiences. Today, that’s what streaming services do.
With the wireless revolution in full effect, billions of people now own smartphones, laptops, and smart TVs, all capable of streaming video content via a wireless network connection. This creates ease of access for consumers to watch content as they please, at anytime, from anywhere in the world.
In this month’s issue, we are going to take a look at the online streaming market and determine which companies are well-positioned to capitalize on this huge potential opportunity that could last decades if not longer.
The shift from TV to internet streaming has been playing out for the past decade. From 2010 to 2019, there have really only been three viable streaming TV services: Netflix, Amazon Prime Video, and Hulu. All of these services have very low costs at around $10 per month. In the past 9 years, consumers have been bundling online streaming services with conventional cable TV.
In 2020, we expect a massive change in the way people view content (away from cable). This could be one of the greatest opportunities the technology sector could offer to start this new decade.
A big lineup of new online TV streaming services launched recently and more are set to launch in 2020. Most experts believe these streaming services will be successful, due to the public being excited about the exclusive content they’re set to release (i.e. Star Wars spin offs on Disney+).
These new services will lead to more and more people “cutting the cable cord.” Instead of paying upwards of $100 per month for cable, customers will be able to replace it with streaming TV services at a fraction of the cost. Streaming services offer consumers the flexibility to subscribe to certain streaming applications based on their personal preferences, instead of just relying on a cable service provider.
Deloitte predicts that streaming applications will dominate the marketplace as early as the end of 2020. They think 20% of adults in developed economies will be paying for 10 digital media subscription services. This shows that there is strength in the market and room for other companies that can deliver niche content for specific demographics.
The global video streaming market size is expected to reach $124.57 Billion by 2025, based on a new report by Grand View Research, Inc. They anticipate the market to expand at a CAGR of 19.6% per year during the forecasted period.
Additionally, increasing demand for high-speed internet connectivity is projected to act as an advantage for market growth. As connections get faster, users will be able to stream higher quality content and won’t have to worry about connection speeds and bandwidth limits. This provides a much more sustainable long term solution for companies to build out infrastructure that will last for decades.
What’s the investment opportunity here? We are going to take a look at some of the top companies to watch in the online video streaming niche. With the massive potential from growth in the market, some of these companies could provide handsome returns over the next few years.
(End of Free Article Preview)
The rest of the article is for POWR Trends members where we provide in-depth analysis on 5 key stocks embroiled in the Streaming Wars to appreciate their chances for success. Those 5 stocks are:
Apple (AAPL)
AT&T (T)
Netflix Inc. (NFLX)
iQIYI (IQ)
Walt Disney Co. (DIS)
To see the full Streaming Wars edition with write ups on these 5 stocks plus coverage of other exciting growth trends like Internet of Things, Graphene, Millennials, 5G and more…then time to discover the POWR Trends newsletter.
NFLX shares were trading at $333.20 per share on Tuesday afternoon, up $0.10 (+0.03%). Year-to-date, NFLX has gained 24.49%, versus a 30.33% rise in the benchmark S&P 500 index during the same period.
About the Author: Steve Reitmeister
Steve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks. More...
More Resources for the Stocks in this Article
Ticker | POWR Rating | Industry Rank | Rank in Industry |
NFLX | Get Rating | Get Rating | Get Rating |
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DIS | Get Rating | Get Rating | Get Rating |
IQ | Get Rating | Get Rating | Get Rating |
T | Get Rating | Get Rating | Get Rating |