According to data from the Motion Picture Association of America, the total number of streaming subscribers had a 26% increase (1.1 billion) in 2020 and is growing! America is the primary market with 309 million subscribers. This is a huge opportunity to invest in streaming stocks.
Obviously, the coronavirus was one of the biggest drivers for the increase in subscribers as people stayed home. This is likely to continue as many parts of the country still have closed theaters and people are still afraid to use them.
We are starting to see two things happening in the streaming world. The first is that streamers are starting to start to produce their own content and the second is that channels are starting their own streaming.
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Investors have a lot of options to invest and more coming daily. Here are 5 steaming stocks to look at for 2021:
Netflix (NASDAQ: NFLX) is the largest streaming company and continues to lead with over 200 million subscribers. Its stock has seen a huge increase in the last year but has been going sideways since late July. One of the challenges it faces right now is keeping contracts with content creators who are not renewing their contracts because the creators are starting their own streaming services. NFLX may be a good buy on the dip, but don’t expect large growth soon.
Disney (NYSE: DIS) was late to the game but has grown to be the second-largest streamer with over 100 million subscribers. The service is very promising because of the “cult” like the following Disney has and the enormous media market the company controls. The stock itself took a kit because of coronavirus but appears to be coming back. If you like Disney overall, DIS could be a good buy.
ViacomCBS (NASDAQ: VIAC) stock has shot up over 700% in the last year but is currently seeing a price correction. The streaming service has roughly 30 million subscribers but is likely to see a decrease in subscribers due to the coronavirus vaccine and competition. Unfortunately, we think VIAC is overbought and likely to see more correction.
Lions Gate Entertainment
Lions Gate Entertainment (NYSE: LGF-A) has increased its base by 70% to over 14 million subscribers this recent quarter. It owns a decent library of content and can create content. It has recently made deals with Sony, Starz for content deals. Lions Gate play is for specific content, rather than massive libraries. The stock continues to climb high and likely sees growth long term.
Discovery Communications (NASDAQ: DISCA) stock is poised to continue to make some moves soon, so it is a great one to watch. The new streaming service Discovery + has over 11 million subscribers. It was a bit late to the game but is quickly picking up subscribers. We think that DISCA caters to a unique niche like Disney and as result will continue to grow. DISCA has potential for substantial growth in the near future.
Stock Performance Comparison
|Company||Walt Disney||Discovery||Lions Gate||Netflix||ViacomCBS|
|Best Monthly Return||23.20%||37.70%||44.70%||40.80%||35.10%|
|Worst Monthly Return||-19.50%||-26.40%||-27.90%||-20.90%||-42.40%|
|Max Drawdown 1-Year||-14.30%||-26.40%||-35.60%||-15.90%||-22.50%|
|5-Year Price Range||92%||98%||43%||83%||94%|