What streaming outfits can take advantage of rapid growth?
According to Statista, more than 3 billion people worldwide watched or downloaded videos at least once a month in 2020, and that figure is expected to rise to 3.5 billion by 2025. A number of companies are looking to pull take advantage of this huge opportunity. This article addresses the issue with reference to Netflix (NASDAQ:NFLX), Walt Disney Co (NYSE: DIS), Amazon (NASDAQ:AMZN) and QYOU Media (TSXV: QYOU) (OTCQB: QYOUF).
QYOU Media (TSXV: QYOU) (OTCQB: QYOUF) operates as a media company. The company produces and distributes content created by social media influencers, artists and digital content creators across television networks, satellite TV, over-the-top media and mobile platforms.
QYOU Media also manages influencer marketing campaigns for major movie studios and major household brands.
The company primarily operates in India, where it aims to take advantage of the growing adoption of smartphone and smart TV technology. The company has launched five entertainment channels aimed at India’s young population through its The Q India brand. These include its flagship channel, The Q, which was the fastest growing channel in the whole country last year.
Viewers can watch these channels on a number of platforms, including QYOU Media’s free advertising. QPLAY app, which allows users to tune into the company’s five different TV channels via smartphones or smart TVs.
Today, the company is also expanding beyond video streaming, having acquired majority stake in mobile game specialists Maxamtech Digital Ventures. With KPMG estimating that more than 420 million Indians are online gamers, the company hopes the move will spur growth.
QYOU Media’s Indian offering is growing alongside its revenue. His most recent income updatewhich covered the three months ended June 30, 2022, saw the company generate record quarterly revenue of C$6.9 million, representing 163% year-over-year growth .
Adjusted EBITDA loss also improved over the period, with a 33% reduction in loss. Net loss rose 7%, but the company attributed this to the launch of new channels and programs as the company rapidly expands its entertainment footprint.
Netflix (NASDAQ: NFLX) operates as a subscription streaming service and production company. The company offers a wide variety of TV shows, movies, anime, and documentaries on internet-connected devices. It serves customers all over the world.
Netflix is a company synonymous with streaming, having revolutionized the way consumers consume entertainment at home.
Company’s Newest quarterly income showed something of a return to form, however, with paying subscribers rising to around 2.4 million after two consecutive quarterly declines.
Even so, the company appears to have been spooked by the decline, and the rate of growth seen in the last quarter is still much slower than Netflix got used to. This difficulty led the company to move towards a sort of ad-supported offers, while also seeking to prevent users from sharing their password.
These moves will strengthen existing revenue streams and add new ones as the company faces increasing competitive pressure. New subscribers could be lured to the service by an upcoming cheaper price of $7 per month offerwhich includes approximately five minutes of advertising per hour of programming.
However, the success of this significant change in the business model remains to be determined.
Walt Disney Co (NYSE: DIS) operates as an entertainment and media company. The Company’s segments include Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products and Interactive Media. The company serves customers worldwide.
Another major player in the streaming landscape, with its Disney+ offer reaching 221 million subscribers in its latest edition quarterly results to make Walt Disney Co the biggest streamer in the world.
The huge growth of its streaming service propelled significant revenue growth for Walt Disney Co, with an impressive 26% increase in revenue from the same quarter 12 months prior.
However, analysts have warned that the service could lose up to 20 million subscribers in South Asia after failing to secure Indian Cricket Premier League rights.
Vivek Couto, Executive Director of Media Partners Asia, said Bloomberg: “IPL boosts customer acquisition. It is seen as entertainment and not just a sport by Indian households – women and men.
This may be part of the reason for Walt Disney Co’s decision to follow some of its competitors in creating a ad-supported subscription offer, while raising the price for viewers who want to enjoy Disney+ ad-free.
Jeff Bezos’ Amazon (NASDAQ: AMZN) is an online retailer that offers a wide range of products. The Company’s products include books, music, computers, electronics and many other products.
The company offers personalized shopping services, web-based credit card payment and direct delivery to customers. It also operates a cloud platform offering services globally.
Having made a name for itself in the e-commerce world, Amazon has entered the video streaming fray since 2006. The service has grown significantly, with its popularity bolstered by the fact that the subscription includes e-commerce delivery options faster, as well as electronic books. , music and grocery services.
More recently, Amazon made entertainment headlines with its the Lord of the Rings prequel show power rings. The fantasy series, which was promoted by a huge deluge of marketing, reportedly cost up to $1 billion produce.
Millions of people first listened to the broadcast, but reaction audience ratings have been mixed, with some critics comparing the show unfavorably to Peter Jackson’s film adaptations of Tolkien’s world of Middle-earth or his fantasy television peers Dragon House.
This could indicate that the show may not be driving subscriber growth as much as Amazon had hoped.