For years, the so-called ‘streaming wars’ dominated headlines on Wall Street.
However, it seems that an armistice has been reached, and it’s good news for investors.
A rising tide lifts all boats…
… or so the old adage goes, and in no industry is that more glaringly obvious than in over-the-top streaming.
According to a new study from the Motion Pictures Association (MPA), streaming services surpassed one billion subscribers by the end of 2020.
Suddenly the question of “who will win the streaming wars?”, has become “how high is the ceiling?”
In 2020, 55% of U.S. adults reported that their viewing of movies and TV shows through digital platforms increased, and more than 85% of children and more than 55% of adults reportedly watched movies and TV shows on their mobile devices — the domain of streaming.
Success breeds success, and while Disney+ is fast catching up on Netflix’s 200 million+ subscriber count, the latter isn’t exactly slowing down either, adding 8.5 million users in Q4 last year. But how do we manage this growing number of subscriptions though? With a brand-agnostic, all-in-one device such as Roku (NASDAQ: ROKU).
Remember that this is still a young space with massive growth opportunities — its market size was valued at $50.11 billion in 2020 and is expected to grow at a CAGR of 21% from 2021 to 2028.
And in all that growth, the middle-man, Roku, is set to benefit the most, which is easy to forget when a market-wide tech sell-off just shows red.
For more about Roku as an investment, read our free blog piece here.
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MyWallSt operates a full disclosure policy. MyWallSt staff currently holds long positions in companies mentioned above. Read our full disclosure policy here.
Editor at MyWallSt
Jamie is the Content Editor here at MyWallSt. His favorite stock is Apple, which is also the first stock he ever bought. Jamie is not only a big fan of its products, but he believes that the tech giant has a whole lot more to give the world, and hasn't even scraped the surface of its potential.