The U.S. streaming services market is expected to crest $59 billion in 2021, according to Grandview Research – that’s up from $50 billion in 2021. By 2028, Grandview notes, the streaming market should be valued at $224 billion.
This from Versace:
“Walt Disney finally released its latest installment in the Marvel cinematic universe, ‘Black Widow,’ and it had a very solid opening, scoring $80 million at the domestic box office and $78 million at the international box office. Disney enjoyed that take, but also revealed that more than $60 million globally from streaming the new film through its Disney+ Premier Access, which carried a $30 ticket on top of the monthly Disney+ subscription.
“There is an argument that jibes with the Cash-Strapped Consumer investment theme I recently discussed. For the price of Disney+Premier Access, you can pack as many people in your own home as you want, and stock up on far more affordable snacks than you could when visiting AMC Theaters AMC or Cinemark CNK.
Citing a “streaming explosion,” Versace adds several other big league streamers to his list, including Apple (AAPL), Amazon (AMZN) - Get Amazon.com, Inc. Report, and of course Netflix (NFLX) - Get Netflix, Inc. (NFLX) Report, but more recent entrants including Comcast's (CMCSA) - Get Comcast Corporation Class A Report Peacock, HBO Max and Paramount+.
Versace also is watching Sony, Crackle and other video on demand networks. Each of the above stocks meets Versace’s mandate that “content is king” – the bigger, the better.
“When we think about content companies, the stable of characters at Disney that spans the various Marvel, Star Wars, and Pixar universes, as well as Disney's own formidable library, makes it a natural go to. AT&T's (T) - Get AT&T Inc. Report WarnerMedia has its stable of DC Entertainment staples that it is looking to leverage, Hasbro (HAS) - Get Hasbro, Inc. (HAS) Report and several of its own properties including GI Joe, and AMC Networks (AMCX) - Get AMC Networks Inc. Class A Report has its ‘Walking Dead’ franchise.”
If Versace had to choose only one streaming services stock, he’s only wishing on one star – Disney. His advice, however, is to wade in gradually.