Post-Pandemic Streaming Wars

Post-Pandemic Streaming Wars
TradeGM Analysis date_range August 2nd, 2021

As the vaccination program continues at full speed, economies begin to recover, and people return to normal life, streaming platforms start a new chapter. Netflix, YouTube, Amazon, and Disney are among the top global streaming services, fighting to establish themselves in this industry. 

Fueled by subscriptions that stemmed from millions of people quarantined at home, streaming services were among the biggest winners of the pandemic. People could not go to work, visit bars or restaurants, or see their friends, causing subscriptions to surge. 

But now that the pandemic madness is subsiding, and everyone is eager to get back to life as they knew it, the real streaming wars are beginning. All these media giants will struggle to show subscription growth now that people are no longer homebound.  

According to Nielsen, the highest total US TV time for June 2021 is divided among these media giants. 

Share of total US tv time - June 2021
streaming wars

Sourced from Netflix 

Netflix (NFLX) 

Revenue: $7.3 billion 

Paid Memberships: 209 million 

Earnings Per Share: $2.97 

Sitting atop the streaming throne, Netflix’s latest quarterly earnings show that the company beat the estimates. Coupled with the fact that Netflix series and specials received 129 Emmy nominations earlier this month, it is no surprise that this streaming giant reached the top it sits on today. 

Based on the report provided by Nielsen, Netflix is in the lead in terms of share of streaming time. The company also officially announced its expansion into the games category, which is likely to raise its numbers even further. The move is an effort to build on the success that stemmed from the interactivity we saw with Black Mirror and Stranger Things.  

YouTube (AAPL) 

Revenue: $7 billion 

Though it is not yet number one, YouTube is gaining solid momentum and becoming a force to be reckoned with. On Tuesday, Alphabet, YouTube’s parent company, revealed that YouTube scored an impressive $7 billion in advertising over the past quarter.  

According to Nielsen’s Total Ad Ratings Reach reporting, YouTube is a tool that has proven to reach audiences that TV cannot. During the earnings call, Alphabets executives explained that 70% of YouTube’s reach was delivered to an audience not reached by the advertiser’s TV media.  

Amazon Prime (AMZN) 

Revenue: $113.1 billion 

Paid Subscribers: 200+ global subscribers 

Earnings Per Share: $15.12  

Although it remains unclear how many of the Amazon Prime subscribers are paying for the video service instead of the delivery service, Amazon says that 175 million subscribers streamed shows and movies in the past year.  

Over the past quarter, Amazon has also stepped up its streaming game significantly. From acquiring the MGM studios, releasing Amazon original content, and earning 20 Emmy nominations, Amazon Prime Video appears to have more in store for the future.  

Disney (DISNEY) 

Revenue: $15.61 billion 

Paid Subscribers: 103.6 million 

Earnings Per Share: $0.79 

Disney’s second-quarter results came out in May, showing that the company missed the Wall Street estimates. However, CEO Bob Chapek explained that they were not worried as the numbers matched internal projections. Reportedly, Disney+ plans to secure 230 – 260 million subscribers by 2023. 

The company is going all-in on its streaming service, adding over 100 titles to its library recently. The movies and shows are predominantly connected to franchises like Star Wars, National Geographic, Marvel, etc. 

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.42% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. X