The streaming industry has a lot of competitors, and experts believe it’s only a matter of time before many of them merge. Indeed, media billionaire John Malone told Yahoo Finance’s Opening Bid podcast that more consolidation is coming, especially as social media and streaming continue to overlap. Malone, who built his reputation making huge media deals, said that the market is becoming inefficient with so many platforms. At the same time, big tech companies like Amazon (AMZN), Apple (AAPL), Google (GOOGL), and Meta (META) are growing their influence in the entertainment industry.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
In fact, Amazon has a long-term deal with the NFL, while Apple continues to invest in original shows. Furthermore, TKO Group (TKO) recently signed a $7.7 billion streaming deal with Paramount (PSKY) for UFC events, and Disney’s (DIS) ESPN now has streaming rights to WWE. Interestingly, Malone believes that platforms like YouTube, which already blend social media and video, have the upper hand. This is because he expects companies with massive user bases, strong AI, and deep infrastructure to take over as the main distributors of entertainment.
Malone also said that Disney is in a strong position thanks to its popular brands and theme parks. Separately, Analyst Craig Moffett pointed out that the most successful players will be those who can merge or form partnerships that help both consumers and company profits. He added that people are getting tired of juggling five or six streaming services, which is not only confusing but also expensive. As a result, viewers may shift toward fewer, more streamlined options.
Which Streaming Stock Is the Better Buy?
Turning to Wall Street, out of the streaming stocks mentioned above, analysts think that META stock has the most room to run. In fact, META’s average price target of $872.48 per share implies more than 18% upside potential. On the other hand, analysts expect the least from PSKY stock, as its average price target of $12 equates to a loss of 18.4%.
