Is Disney the top streaming stock?
The battle of streaming services has been in full swing for a while now. Still, with Netflix hitting some bumps recently, tech giants like Amazon and Apple getting into the game, and TV veterans like Time Warner and Discovery forming “Warner Bros. Discovery,” not everyone will survive long-time in the streaming game.
Disney has some structural advantages over its competitors, and we may see the fruits of Disney’s investment into streaming sooner than you think.
It’s all in the content
If the “streaming war” has shown us something in the last years, it’s that not all content has the same life span. Netflix spent billions over the previous five creating content, only to discover that the content they created has a minimal shelf life.
Disney has arguably the best content franchises, with its catalogue containing Star Wars, Pixar, Marvel, and Disney Animation. Their catalogue is filled with more rewatchable content than any streaming provider.
This matters when building out a streaming company because hits matter, but rewatchable filler content is what gets views on a day-to-day basis, and it has a much longer value lifespan.
At this point, Disney isn’t the only game in town with franchise content. Warner Bros. Discovery has created a great catalogue with Harry Potter and HBO’s entire library.
It’s a time investment
The stock market and media generally want instant gratification when it comes to a business, especially if you’re called Disney, but it’s a long game.
Disney is investing right now in the infrastructure and content to improve its streaming platform and give it a lifetime value. Disney has theme parks, cruise lines, merchandise, and other ways to monetize content that goes beyond competitors’ infrastructure, giving them the time and money to invest and wait.