Let the Streaming Wars begin.....for real

Nov 13, 2019 | Jeremy Goldfarb


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So here we are on November 13th, and Disney has fully entered the streaming space. (They actually entered yesterday with some difficulties but anyway....)Early numbers show that subscribers out of the gate his 10,000,000. That's right out of the gate! The stock is up almost 7.5% on the news which is good for those who own it (we are among them in many cases) and as the closing bell "dings" in behind me, it has officially closed at  $148.76. The biggest single day move since it they announced they would be entering the streaming space.

 

Consequently, Netflix is down 3% on the news as well. What does this all mean though, and how does an investor make heads or tails of it all? Here is a thought that you may want to take with you. Instead of trying to pick the winners or the losers in the whole streaming space (that is very difficult to do at the best of times), why not look at the underlying technology that supports the market? Maybe the answer is in the technology? What companies are embedded in the underlying technology?

 

One has to ask themselves...."is streaming content here to stay?" I was not around for the birth of cable, but one might be able to find some clues in the development of that market, and what companies rose, and fell throughout.