Yahoo Finance 10 Up And Coming Streaming Companies And Services
In this article, we will be taking a look at 10 up and coming streaming companies and services. To see more of these companies, you can go directly to see the 5 Up And Coming Streaming Companies And Services.
The streaming sector within the larger communication services industry has been growing exponentially over the past decade. We mentioned in one of our previous articles that there were over 200 streaming services available online by December. The sheer size of the sector resulted in its global market size being valued at $375.1 billion in 2021. This market was further forecasted to grow at a compound annual growth rate of 18.45% till 2030. These figures reflect the potential and profitability expected from the streaming sector, leading many companies within it to benefit from immense investor support.
Streaming Video Revolution and Other Trends
Companies operating within the streaming sector, such as Netflix, Inc. (NASDAQ:NFLX), Amazon.com, Inc. (NASDAQ:AMZN), and Comcast Corporation (NASDAQ:CMCSA), are thus constantly at the receiving end of both investor support and criticism because of how many hopes are riding on their shoulders. The provision of streaming platforms by these companies over the past 15 years has led to a revolution in the communications services industry, one that has significantly hampered the profitability of traditional cable TV platforms. According to a Deloitte report on the 2023 Media & Entertainment Industry Outlook, this development has resulted in major US cable and broadcast providers now launching their own streaming video-on-demand (SVOD) offerings. Additionally, these newer services are impacted by worsening economic conditions, leading many streaming providers to offer cheaper, ad-supported tiers on their streaming platforms.
Because of these trends, many streaming service providers are attempting to derive profits from other sources. One major source is streaming advertising, which is essentially the inclusion of advertisements in free streaming platforms to generate ad revenues to offset subscription pricing. According to Deloitte, in 2023, we may thus see a considerable increase in streaming advertising.
Growth in The Streaming Market
According to a Fortune Business Insights report, the global video streaming market is projected to grow from $473.39 billion in 2022 to about $1.7 trillion by 2029. The report mentioned that the global streaming market saw year-over-year growth of 5.7% between 2019 and 2020. This growth seems to have been supported by the COVID-19 pandemic since lockdowns left the global population with little to do in their free time, leaving most open to the temptation of online video streaming. It was noted that during the pandemic, streaming traffic increased by 26% by the end of 2020. Additionally, the number of video-on-demand users also increased between 2019 and 2020 to about 1.1 billion, while the combined online video subscriptions of streaming services such as Netflix and Disney+ increased by 26% over the same time period. This translated to about 230 million new subscriptions for these two platforms alone by the end of 2020.
The growth of the online streaming market has resulted in the stocks of many streaming companies performing well in 2023. For example, Netflix, Inc. (NASDAQ:NFLX) shares are up by 16.89% year-to-date as of May 12. Subscribers for most of these companies' streaming platforms have also been on the rise since the pandemic. According to a Wall Street Journal article published in January, Netflix, Inc. (NASDAQ:NFLX) added 7.7 million new subscribers to its database in the fourth quarter of 2022, for instance. This addition of new subscribers led to the streaming giant beating its own subscription projections for the quarter. The sheer potential embodied by the streaming sector in light of such developments is why we have compiled a list of the up-and-coming streaming companies in the market today.
Photo by Ashley Byrd on Unsplash
Let's now take a look at the 10 up and coming streaming companies and services.
Our Methodology
We have selected streaming companies offering popular streaming services and platforms for our list below. We used Insider Monkey's hedge fund data for the fourth quarter, when 943 hedge funds were tracked, to show hedge fund sentiment surrounding these companies. They are ranked based on the number of hedge funds holding stakes in them, from the lowest to the highest.
Up And Coming Streaming Companies And Services
10. CuriosityStream Inc. (NASDAQ:CURI)
Number of Hedge Fund Holders: 7
CuriosityStream Inc. (NASDAQ:CURI) is a streaming company based in Silver Spring, Maryland. It provides premium video programming services through direct subscription video-on-demand platforms.
Analysts at Benchmark hold a Buy rating on shares of CuriosityStream Inc. (NASDAQ:CURI) as of March 31.
CuriosityStream Inc. (NASDAQ:CURI) has developed a niche for itself within the streaming sector. The company focuses on growing and distributing its library of informative, non-fiction, documentary-style content. The company's platform also offers its content at competitive prices with a $30 annual commitment. As of this January, CuriosityStream Inc. (NASDAQ:CURI) had reported revenues of $23.6 million in 2022 and $10 million in gross profit.
Seven hedge funds held stakes in the company in the fourth quarter, with a total stake value of $566,000. Citadel Investment Group was the largest shareholder in CuriosityStream Inc. (NASDAQ:CURI) at the end of the quarter. It held 253,500 shares in the company.
CuriosityStream Inc. (NASDAQ:CURI), like Netflix, Inc. (NASDAQ:NFLX), Amazon.com, Inc. (NASDAQ:AMZN), and Comcast Corporation (NASDAQ:CMCSA), is a streaming company with immense potential.
9. fuboTV Inc. (NYSE:FUBO)
Number of Hedge Fund Holders: 11
FuboTV Inc. (NYSE:FUBO) operates a live TV streaming platform for live sports, news, and entertainment. The company is based in New York.
Shweta Khajuria, an analyst at Evercore ISI, holds an In Line rating on fuboTV Inc. (NYSE:FUBO) shares are of February 28.
The streaming services offered by fuboTV Inc. (NYSE:FUBO) are among the best in the streaming sector today since the company offers a wide variety of channels on its platform. It has also developed a niche for itself in the sports segment, leading to a large and dedicated consumer base. Unlike its competitors, fuboTV Inc. (NYSE:FUBO) offers 4K streaming for select content on demand and select live events. The starting price for its subscription is $75 per month.
There were 11 hedge funds long fuboTV Inc. (NYSE:FUBO) in the fourth quarter. Their total stake value was $14.4 million.
Investment management company Bireme Capital mentioned fuboTV Inc. (NYSE:FUBO) in its second-quarter 2022 investor letter. Here's what the firm said:
“In contrast, we don’t foresee fuboTV Inc. (NYSE:FUBO) finding a profitable business model. The company, which operates a streaming TV service, still has negative gross margins and in 2021 generated over $300m in operating losses. This company may end up in bankruptcy, given that it already carries around $400m of debt and looks set to burn over $300m of cash this year. The stock has fallen from $26 when we last mentioned it to $2.60 today. We remain short.”
8. AMC Networks Inc. (NASDAQ:AMCX)
Number of Hedge Fund Holders: 20
AMC Networks Inc. (NASDAQ:AMCX) owns and operates several video entertainment products, including the AMC+ streaming platform. It is based in New York.
Morgan Stanley's Thomas Yeh holds an Equal Weight rating on AMC Networks Inc. (NASDAQ:AMCX) shares as of February 21.
AMC Networks Inc. (NASDAQ:AMCX) is a company that has been surviving on the strength of its content since it is behind several popularly streamed shows such as Breaking Bad, Better Call Saul, and Interview With The Vampire. Such programs are expected to keep generating revenues for the company. AMC Networks Inc. (NASDAQ:AMCX) also offers streaming platforms like AMC+ and AMC Premiere, the former being available for as low as $8.99 per month.
AQR Capital Management was the largest shareholder in AMC Networks Inc. (NASDAQ:AMCX) at the end of the fourth quarter, holding 563,168 shares. In total, 20 hedge funds were long the company's stock, with a total stake value of $55.2 million.
ClearBridge Investments, an investment management firm, mentioned AMC Networks Inc. (NASDAQ:AMCX) in its first-quarter 2021 investor letter. Here's what the firm said:
“Media has been another bright spot for the Strategy, boosted by the return of live events and subsequent rebound in advertising as well as good initial traction for several of our companies new streaming services. AMC Networks has seen strong initial subscriber growth to their over-the-top services.”
7. Roku, Inc. (NASDAQ:ROKU)
Number of Hedge Fund Holders: 30
Roku, Inc. (NASDAQ:ROKU) is a communication services company operating a TV streaming platform. It is based in San Jose, California.
Tom Forte at DA Davidson holds a Buy rating on shares of Roku, Inc. (NASDAQ:ROKU) as of March 31.
Roku, Inc. (NASDAQ:ROKU) has benefitted immensely from increasing streaming TV penetration. By the end of 2022, the company has 70 million subscribers on its streaming platform, which was an increase of 16% year-over-year. In the fourth quarter, Roku, Inc. (NASDAQ:ROKU) generated revenues of $867.06 million, beating analyst estimates by $64.31 million.
Our hedge fund data shows 30 funds long Roku, Inc. (NASDAQ:ROKU) in the fourth quarter, with a total stake value of $967 million.
6. DISH Network Corporation (NASDAQ:DISH)
Number of Hedge Fund Holders: 37
DISH Network Corporation (NASDAQ:DISH) is a provider of pay-TV services. The company also offers a streaming platform under the name of Sling TV.
Citigroup's Michael Rollins holds a Buy rating on shares of DISH Network Corporation (NASDAQ:DISH) as of March 13.
Sling TV, the main streaming platform offered by DISH Network Corporation (NASDAQ:DISH), has quickly become a popular streaming service for many subscribers. The Sling TV Freestream version is another tier of this platform, offering fewer channels but over 200 live channels and on-demand content for free. DISH Network Corporation (NASDAQ:DISH) generated revenues of $4.04 billion in the fourth quarter.
Eagle Capital Management was the largest shareholder in DISH Network Corporation (NASDAQ:DISH) at the end of the fourth quarter, holding 15.3 million shares in the company. There were 37 hedge funds holding stakes in the company, with a total stake value of $617 million.
DISH Network Corporation (NASDAQ:DISH), like Netflix, Inc. (NASDAQ:NFLX), Amazon.com, Inc. (NASDAQ:AMZN), and Comcast Corporation (NASDAQ:CMCSA), is a highly popular streaming company today.
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Disclosure: None. 10 Up And Coming Streaming Companies And Services is originally published on Insider Monkey.