The streaming industry is evolving more than ever with Netflix leading the race. Here’s more to know about the streaming world.
It seems like the quarantine period will go on forever and what can be more befitting for the streaming industry. Streaming has seen a major boom due to the isolation this year which has made investors bet on streaming stocks going forward.
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As per the data from Nielsen’s Total Audience Report, consumers are turning towards apps and web-based streaming on smartphones, and are connecting less to their TV sets. This report was updated in February 2020 and the viewership of web-streaming network have increased further since then.
Still, looking into the broader perspective, the streaming platforms have constantly grown their viewership in the pre-COVID era. So, the potential of the streaming world is beyond such impermanent factors.
Netflix is leading the streaming network at the moment. The streaming giant has over $195 million paid subscribers as of September 2020. With the increasing competition in over-the-top providers from streaming content, Netflix has to compete against many competitors. The two of the biggest in the market today are Amazon Prime Video (AWS) and Hulu.
So, let’s have a look at all these three streaming monarchs, and who’s winning the race?
Netflix (NFLX)
Netflix (NFLX) has seen steady and consistent growth in its paid viewership over the years. With the evolution of the internet, over-the-top media services have grown significantly.
The company’s CEO, Reed Hastings believes that the perfect way to judge how a streaming network is doing and winning the war is how much time consumers spend with each service.
In the ongoing pandemic, people are spending more time at home streaming video. Netflix is having more viewership than its average share of viewing. In March, a survey from Morning Consult reported that over 35% of the streaming users are watching more Netflix compared to other web-streaming networks. The closest to Netflix is Disney’s Hulu with 10% and Disney Plus in at 4%.
Netflix has over 195 million paid subscribers worldwide as of Q3 2020. Among these subscribers, 73 million of them are from the U.S.
The current difference of subscription between Netflix and other streaming networks is expected to close up in the coming years. By the end of 2019, Hulu had almost half as many subscribers as Netflix, while AWS stands right behind Netflix with 150 million subscribers.
Amazon Prime Video
The e-commerce deity is emerging in cloud-based and SaaS services. Amazon’s (AMZN) Prime Video is the biggest competitor to Netflix. The growing statics suggests that Prime Video will be right behind Netflix in the next few years.
Just like Netflix, Amazon Prime also produces its original films and series. It has a wide range of content including feature films, documentaries, series, and TV shows, and many more. The service is available through different channels which include the Amazon Prime app, smart TVs, streaming media players, game consoles, and Amazon’s Fire TV.
According to market.us, around 64% of the households subscribe to Amazon Prime service globally. In the U.S., almost 40% of Prime Video users spend up to $1,000 annually on the streaming platform.
Disney’s Hulu
Disney’s Hulu might not be a close competitor to Netflix and Amazon Prime Video, but it’s a strong streaming network with its specials. Hulu is a top streaming service for cord-cutters. In the pre-COVID phase, Hulu added FX library making. More interestingly, FX will now be viable on Hulu exclusive shows, adding more diversity to the streaming.
Hulu’s also doing good work to catch enough audience to be in the leading race of streaming. Earlier this year, Hulu premiered the Andy Samberg-starring film Palm Springs which helped Disney’s streaming network stay near Netflix; considering the original movies with bankable stars.
Just like other streaming networks, Hulu has also had a stellar year attracting new viewers. Disney is making some major moves for its streaming industry including Hulu and Disney+.
By the end of 2019, Hulu had around 30 million subscribers. Now, let’s see how much the streaming network will end for the year 2020.
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The new year awaits new times and with the streaming industry growing more than ever, there’s a great investment opportunity in streaming stocks.
