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.

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.

5. Comcast Corporation (NASDAQ:CMCSA) PEACOCK

Number of Hedge Fund Holders: 72

Comcast Corporation (NASDAQ:CMCSA) is a media and technology company based in Philadelphia, Pennsylvania. The company offers the Peacock streaming platform.

On April 21, Atlantic Equities analyst Hamilton Faber upgraded shares of Comcast Corporation (NASDAQ:CMCSA) from Neutral to Overweight.

Peacock, the streaming platform offered by Comcast Corporation (NASDAQ:CMCSA), is among the best streaming services available with a free tier. Alongside the free version, the premium version is also affordable, starting as low as $4.99 per month. The streaming service is a consumer favorite because it offers a range of classic TV shows, big sports events, and live WWE events.

There were 72 hedge funds long Comcast Corporation (NASDAQ:CMCSA) in the fourth quarter, with a total stake value of $3.7 billion.

ClearBridge Investments, an investment management firm, mentioned Comcast Corporation (NASDAQ:CMCSA) in its fourth-quarter 2022 investor letter. Here’s what the firm said:

“That balance served the Strategy well throughout the year, enabling outperformance against the benchmark in all four quarters. Results in the last three months were driven by a long-time media position in Comcast Corporation (NASDAQ:CMCSA), which we consider a durable compounder due to its consistent revenue growth and free cash flow generation. Comcast shares saw a snapback after a difficult first half of the year caused by cord cutting in its cable business and slowing subscriber growth in its broadband business. A flexible balance sheet and strong cash generation enabled the company to repurchase shares during the selloff earlier in the year.”

4. The Walt Disney Company (NYSE:DIS) hulu

Number of Hedge Fund Holders: 99

The Walt Disney Company (NYSE:DIS) is a diversified entertainment company. It offers notable streaming services such as Disney+ and Hulu.

Bryan Kraft, an analyst at Deutsche Bank, holds a Buy rating on The Walt Disney Company (NYSE:DIS) shares as of April 19.

The Walt Disney Company’s (NYSE:DIS) Hulu and Disney+ both start with a subscription fee of $8 per month. Hulu offers a variety of TV channels and quality original programming at affordable prices, while Disney+ is targeted at families and offers UHD resolution options for nostalgic and original shows.

The Walt Disney Company (NYSE:DIS) was found among the 13F holdings of 99 hedge funds in the fourth quarter. Their total stake value was $3.4 billion.

VGI Partners Global Investments Limited, an investment management company, mentioned The Walt Disney Company (NYSE:DIS) in its 2022 annual investor letter. Here’s what the firm said:

“The Walt Disney Company (NYSE:DIS) is a diversified media conglomerate operating media networks, theme parks, film and TV studios and direct-to-consumer streaming services. It is the global leader in theme parks with hotels and cruise lines aimed at families. Key assets within Disney are the instantly recognisable entertainment franchises that have multiple avenues of monetisation such as Mickey Mouse, Star Wars, ABC and Marvel’s Avengers.

Disney’s share price declined due to a number of factors in 2022, presenting us the chance to purchase a long-admired business and its unique collection of valuable intellectual property assets at what we consider to be a very attractive valuation. Summarily, the EPS of Disney has declined from US$7 in 2018 to ~US$2.60 in 2022 but we believe that the earnings power of the assets has not diminished to anywhere near this extent.

Disney is currently undergoing a business transition within the Media and Entertainment Distribution division (DMED) from traditional media property distribution via third parties (i.e. cinemas and broadcast networks) to a Direct-To-Consumer (DTC) model via the Disney+ streaming service. A key element of our thesis is that the earnings power of the company is currently being masked by the marketing and content investments within Disney+ and that this will normalise over the next several years. To put this in perspective, Disney+ (DTC sub-segment) currently generates operating losses of over US$3.3bn (a negative 14% operating margin) compared to operating margins at its nearest streaming competitor, Netflix, of +15.5%…” (Click here to read the full text)

3. Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Fund Holders: 117

Netflix, Inc. (NASDAQ:NFLX) is perhaps one of the most popular and well-known streaming service providers today. It is based in Los Gatos, California.

An analyst at Jefferies, Andrew Uerkwitz, holds a Buy rating on Netflix, Inc. (NASDAQ:NFLX) shares as of April 19.

Netflix, Inc. (NASDAQ:NFLX) offers a vast collection of streaming content on its online platform and application, including many Netflix original movies and TV shows. The platform offers an optimized interface and many popular shows. Its starting price for the basic plan is $9.99 per month.

In total, 117 hedge funds held stakes in Netflix, Inc. (NASDAQ:NFLX) at the end of the fourth quarter. Their total stake value was $8.1 billion.

Investment management company LVS Advisory mentioned Netflix, Inc. (NASDAQ:NFLX) in its first-quarter 2023 investor letter. Here’s what the firm said:

“We initiated our investment in Netflix, Inc. (NASDAQ:NFLX) during the summer of 2022 (discussed in our Q3 2022 letter). Netflix was a baby thrown out with the bath water by the market last year. We found Netflix attractive because the company signaled that it would hold expenses flat while better monetizing its account base via an advertising tier and paid sharing. Despite an impeccable track record of execution, the market didn’t believe Netflix could navigate this transition. While the market now appears to buy into the expense story the market doesn’t fully appreciate the revenue growth story that will play out from the new monetization initiatives. Furthermore, the stock’s pullback during the banking crisis provided an attractive entry point for us to make Netflix an overweight position.”

2. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 135

Apple Inc. (NASDAQ:AAPL) is a tech giant based in Cupertino, California. It was included in the list because it owns and offers AppleTV Plus, an exceptional streaming platform.

Analysts at JPMorgan hold an Overweight rating on Apple Inc. (NASDAQ:AAPL) shares as of April 19.

AppleTV Plus offers quality streaming content with strong original programming. Apple Inc.’s (NASDAQ:AAPL) platform is also known for its collection of music documentaries, which sets it apart from other streaming services.

Our hedge fund data shows 135 funds long Apple Inc. (NASDAQ:AAPL) in the fourth quarter, with a total stake value of $136.4 billion.

Madison Investments, an investment advisor, mentioned Apple Inc. (NASDAQ:AAPL) in its first-quarter 2023 investor letter. Here’s what the firm said:

“Our underweight to Apple Inc. (NASDAQ:AAPL) was a headwind to performance during the first quarter. Apple performed well in the first quarter along with the other large cap technology stocks following a weak 2022. Despite recent supply constraints and macro-economic uncertainty, demand for Apple products remains solid. First quarter iPhone sales would have been flat if not for the supply chain issues.”

1. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 240

Amazon.com, Inc. (NASDAQ:AMZN) is another tech giant on our list, based in Seattle, Washington. The company was included because of its Prime Video streaming platform.

JPMorgan analysts hold an Overweight rating on Amazon.com, Inc. (NASDAQ:AMZN) shares as of April 21.

Amazon.com, Inc.’s (NASDAQ:AMZN) Prime Video has a starting subscription fee of $139 per year. The platform offers exclusive original shows and a wide content selection for consumers.

Out of the 943 hedge funds tracked in the fourth quarter, 240 hedge funds were long Amazon.com, Inc. (NASDAQ:AMZN). Their total stake value was $27.5 billion.

Renaissance Investment Management, an investment management company, mentioned Amazon.com, Inc. (NASDAQ:AMZN) in its fourth-quarter 2022 investor letter. Here’s what the firm said:

“On the negative side, Amazon.com, Inc. (NASDAQ:AMZN) was our worst performing stock in the quarter. The company is finally seeing the consumer and enterprise weakness that other companies encountered earlier in the year. In addition, AWS growth decelerated in the third quarter, with management citing new pricing pressures as competitors look to gain market share. We found Amazon’s comments on cost controls and employee layoffs concerning, given the company’s historical propensity to invest in all macroeconomic environments. Management’s comments that the macro-economic slowdown was more sudden than expected is also concerning, especially since they do not expect an improvement in consumer trends anytime soon.”

See also 11 Best Streaming Stocks To Buy and 11 Best Communication Stocks to Buy.

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Disclosure: None. 10 Up And Coming Streaming Companies And Services is originally published on Insider Monkey.