It's August 2019, and we are on the eve of a streaming TV gold rush that will forever change the global entertainment landscape.To be sure, the linear to internet TV shift has been playing out for the past decade. But, from essentially 2010 to 2019, there have really only been three viable streaming TV services -- Netflix (NASDAQ:NFLX), Amazon (NASDAQ:AMZN) Prime Video, and Hulu -- all of which cost a very cheap ~$10 per month.As such, contrary to what the headlines will lead you to believe, cord-cutters have been the exception. Most households in the U.S. have a Netflix subscription. Most households also still pay for cable TV. In other words, the consumption shift from linear to internet TV in the 2010's has been defined largely by consumers bundling pay TV packages and streaming services together -- not by wholesale cord-cutting.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat's about to change in 2020. A plethora of new streaming TV services are going to launch in late 2019 and 2020. Most of these streaming TV services project to be really good. Pretty much all of them will feature exclusive content.The introduction of these new services will truly kick-start the cord-cutting trend. By 2025, I don't think many households in the U.S. will be paying for cable TV. Instead, I think most households will bundle together several streaming packages at a cost that's similar to what they paid for cable, but with a lot more content and enhanced convenience. Deloitte agrees, saying that as early by the end of 2020, 20% of adults in developed economies will be paying for 10 digital media subscription services. * 10 Marijuana Stocks That Could See 100% Gains, If Not More What's the investment implication here? Buy streaming TV stocks. The streaming TV gold rush that will play out in the 2020's will create a rising tide that will lift most boats in this segment. Streaming TV Stocks to Buy: Netflix (NFLX)Source: Riccosta / Shutterstock.com Streaming Service(s): NetflixIndustry pioneer and leader Netflix is widely seen as a big loser with the oncoming onslaught of competitive streaming TV services from the rest of the media industry.But, this fear seems overstated to me. Netflix will be just fine. As mentioned earlier, the norm by 2025 will be multiple streaming TV subscriptions per household. Probably somewhere around four to five. An over-the-top complete TV package like YouTube TV or AT&T TV will likely be one of them, since consumers still have huge demand for live TV. That leaves three to four open spots. So, when all is said and done, all Netflix needs to be is a top three to four streaming service.Netflix will inevitably be that. The core value prop of Netflix is the original content. Original content streaming hours as a percent of total streaming hours on Netflix has risen from 14% in January 2017, to 24% in October 2017 to 37% in October 2018. Bears will say that the bulk of viewing hours are still...
Add Comment