Streaming war is on , Should you invest into these companies ?

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πŸ’£Short Answer : Not So Much ( But )

Long Answer . Companies like Netflix , Disney plus , Amazon , HBO MAX are competing hard to get even few millions subscribers in current market. The competition is just too high where subscribers are keep jumping between these streaming giants once content is ran out and they get bored.

🎯 π™π™šπ™’π™šπ™’π™—π™šπ™§ π™π™π™šπ™¨π™š π™˜π™€π™’π™₯π™–π™£π™žπ™šπ™¨ π™–π™§π™š 𝙣𝙀𝙩 𝙔𝙀π™ͺ𝙏π™ͺπ™—π™š 𝙀𝙧 π™π™žπ™ π™π™€π™  Which means they need to spend billions of dollars to create good content and keep their subscribers on the hook while companies like YouTube or TikTok doesn’t need to worry about that. in 2021/22 itself Streaming companies planning to spend 100 Billion in total for new content. which is huge.

πŸ“Šπ˜Ύπ™€π™’π™₯π™–π™§π™žπ™£π™œ π™©π™π™šπ™¨π™š 𝙣π™ͺπ™’π™—π™šπ™§π™¨ π™¬π™žπ™©π™ π™₯π™§π™€π™›π™žπ™© : in 2022 , Netflix is set to spend more than $17bn on content β€” up 25% up from 2021 and 57 per cent from the $10.8bn it spent in 2020. And They are still not sure if they can breakeven in 2022. The result of Q4-2021 was not so good and these numbers might look shaky if competition grows.

πŸ”΄ π˜Ύπ™€π™¨π™© 𝙀𝙛 π™π™–π™‘π™šπ™£π™© : Due to increasing competition , production cost is going higher and higher Netflix spend 300 Million for a single movie “Red Notice” which might brings subscribers but for existing customer it is just 2 hours of air time. it is not officially declared but Disney might have paid 30 million for Finch movie in 2021.

But

𝘽π™ͺ𝙩 , yes there is always a but.

Netflix has 222 Million Subscribers

Amazon prime has 200 Million

Disney has 130 Million That is huge number ,What you should be looking here is not the revenue or margin from streaming but numbers of subscribers and how companies management plans to use it in parallel to streaming service.

Subscriber numbers Globally

πŸ’ͺ Thinking out side π™¨π™©π™§π™šπ™–π™’π™žπ™£π™œ. Netflix tried with Shopping options to sell franchised products to their subscribers but it seams slower. Netflix also trying to attempt gaming . Disney has a big plans coming in with NFTs based on type of job openings they have and they should announce it soon.

πŸ“° π™Žπ™€ π™©π™π™š π™˜π™€π™£π™˜π™‘π™ͺπ™™π™š π™‘π™€π™£π™œ π™–π™£π™¨π™¬π™šπ™§ ,

Focus on companies which is not just a streaming company . Example : Disney , They have huge real estate + amusement parks where they can ask their subscribers to spend more on their beloved shows and sell them goodies. my 2 cents are on Disney and 0.5 cents on Netflix ( only if they plan to kick on something in parallel to streaming )

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