TV Streaming Ramps Up
It comes as no surprise that TV streaming is ramping up. "What are you watching?" has become one of the easiest ways to start a conversation nowadays. It's the era of binge-watching. So, you know that at any time, someone is watching something on some kind of TV-streaming platform somewhere. I recently watched an entire season of a new series on Netflix (NASDAQ: NFLX).
Not only is it super easy to get hooked on a new series, but it's also a way to stay up to date and current with everyone else. It's a way to be included in conversations and not left out.
Netflix emerged in 2007 as a streaming service. It changed the way that we view movies and TV shows as we know it. It created a whole new industry and demand.
Now 11 years later, we have a variety of streaming services and devices that allow for us consumers to stream our favorite shows and movies.
Just to name a few, we have streaming services from Amazon (NASDAQ: AMZN), Hulu, and Sling TV. Even a lot of networks like HBO and Showtime provide their own platforms to stream their TV shows and movies. After having seen Netflix's success in creating a platform that consumers became obsessed with, it was time for other companies to change the way they shared their content with customers.
TV Streaming Is Taking Over
For these platforms to stream their services on TVs, there needs to be some type of device capable of doing so. There are a few devices out there to help do this. And some of the top devices come from Roku (NASDAQ: ROKU) and Amazon.
Roku has a few devices that it sells. It has its Roku players that are budget-friendly and plug into someone's TV. Roku has also partnered with TV-makers to incorporate its platform into the TVs themselves. This is ideal. This way, a consumer doesn't have to buy another device. And when they buy their new TVs, it seems like a better deal because they get platforms like Roku already integrated into their TV.
Then there's Amazon. Amazon has its Fire TV Stick and Amazon Fire TV. The TV Fire Stick is a budget-friendly way to add access to various streaming platforms to the TV that you already have. You need to have an Amazon Prime account for the Fire Stick. The company's Fire TV is a standalone device that streams over 250,000 TV episodes and movies on Netflix, Amazon, and HBO Now. It also includes music and other video content from other networks.
According to new data from a digital measurement firm Conviva, there was a 63% increase in third-quarter video-viewing hours over the previous year.
Conviva CEO Bill Demas said in a statement:
Streaming TV consumption shows no signs of slowing down, and publishers have stepped up to the plate, delivering better quality and reliability that viewers have come to expect. The demand for quality is pushing connected TVs to the top in terms of device share…
You may have heard the term "cord-cutters," which refers to people who have ditched cable and have instead opted for streaming services and devices.
The upside of following the cord-cutting trend is that it's easier to manage the content that you want to watch. You aren't forced to add on a bunch of cable packages for a cheaper monthly bill.
Charter Communications, which provides its cable service under the Spectrum brand, says it lost 122,000 TV customers in the first quarter of 2018. This is no exaggeration. Cable companies are losing customers at a significant rate.
Brace Yourself for Huge Growth
It used to be that cable companies would provide a service the way that they wanted to provide that service. You just had to accept the huge monthly bill because you didn't have any other option. Well now, we have plenty of options!
Companies like Roku are benefiting from cord-cutters. Roku went public last year. And its stock has since increased by 300% within a little more than a year. It priced its shares for its initial public offering (IPO) at $14. And as of November 2nd, it opened at $57.55.
Imagine buying stock of Roku on its IPO date? You'd be up by 311% today. This is why it's beneficial to stay up to date on companies that are making their market debuts and are examining their growth potentials as a company and in their markets. If you'd like to learn more about IPOs and companies like Roku that have seen extraordinary growth, click here to expand your knowledge.
There's no denying that the company has been rallying. It reported strong sales on its streaming video players and continues to partner and expand its business.
This market has huge potential. Companies like Roku are reaping the rewards. And cable companies are scrambling to find ways to attract consumers to their businesses again.
Until next time,
Editorial Director, Park Avenue Digest