Real Entertainment Goes Virtual
April 30, 2020 (Investorideas.com Newswire) In an unprecedented twist, the global entertainment industry now finds itself providing real entertainment in a virtual arena. The explosive popularity of online entertainment is evident across the spectrum, from live streaming TV and video to real-time online gaming. Investors savvy enough to cash in on this wave of activity find themselves staring top stocks like Netflix (NASDAQ: NFLX) squarely in the face. The stock has appreciated from $329.81 on January 2, 2020, to its prevailing price of $421.42 per share (April 22, 2020).
As one of a handful of top-performing entertainment stocks, Netflix is in a league of its own. The year-to-date performance, barring any whipsaw activity in pricing, reveals $91 growth, or a 27.8% rise since the start of the year. With global bourses trending strongly negative in the first half of 2020, Netflix hovers above them all. The Netflix boom began in mid-March 2020, as the company reported an increase of 15.8 million subscribers - double the tally that was expected. Now, this market-leading movie streaming service boasts 182 million subscribers globally, with quarterly revenue of $5.77 billion.
No Armchair referees with the Online Gaming Boom
The online entertainment arena is a hive of activity for thrill-seekers across-the-board. Multiple ancillary industries are also cashing in on the newfound popularity of the virtual entertainment paradigm, such as payment processing companies which are now facilitating transfers of funds to/from online gaming companies. One such example is the popularity of Instadebit deposits at Canadian online casinos. This secure online payment solution allows individuals to process payments directly from a bank account to their favorite online casino. All online transactions are processed swiftly, allowing for greater convenience, cost-effectiveness, and player satisfaction. Many other online payment solutions are also fast-tracking the development of secure apps to facilitate payments processing online, which is the new normal for the entertainment arena.
Walt Disney Company Bobs and Weaves on New York Stock Exchange
Netflix isn't the only entertainment stock to hit pay dirt in 2020. Other blue-chip stocks like Disney (NYSE: DIS) have delivered mixed returns, what with theme parks in Florida and California shuttered. However, the company's movie streaming services in the form of Disney-owned Hulu have enjoyed a breakout year with a 33% uptick in paid subscribers.
In April 2020, Disney launched its European platform, and the company is anticipating a strong showing with an estimated 10 million+ registrations. At the time of writing, Walt Disney Co. stock (NYSE: DIS) was trading at $101 per share, down from $148.20 per share at the start of the year. Current trends are certainly bullish, with a short-term climb heading into May.
Music Streaming Services Hit Fever-Pitch Levels
Music streaming is yet another arena that has shown tremendous promise in 2020. One of the ranking music streaming services is Spotify - a juggernaut in the industry. Other top selections include Amazon Music Unlimited, Tidal, and Sirius XM Internet Radio. While sales of CDs are dropping like hotcakes, the fortunes of streaming music services are rising at a steady clip. The RIAA (Recording Industry Association of America) relies heavily on revenue generation through online music streaming services.
The high-quality performance of streaming music guarantees a large and stable global base of customers. Given the compressed nature of online music services (128Kbps - 320Kbps), the performance is certainly remarkable. According to Statista (March 2018 - September 2019), Apple Music and Spotify are neck and neck in terms of numbers of monthly users, with only a small differential between the two. Other leading services include Pandora Radio, iHeartRadio, Google Play Music, SoundCloud, Shazam, and Tunein Radio
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