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One of our favorite growth stocks owns nearly 40% of a streaming market that could be worth over $120 billion by 2025. And the crazy thing is, the more competitive the industry gets, the more this streaming stock grows.
That's how this stock got another bump last Tuesday, when Comcast Corp. (NASDAQ: CMCSA) announced plans to sell its remaining stake in Hulu to Disney Co. (NYSE: DIS).
That's right - this latest chapter in an increasingly hot streaming market war between Disney and Netflix Inc. (NASDAQ: NFLX) is actually feeding the pockets of another company.
To give you an idea of how this happens, let's first a look at what Disney's full acquisition of Hulu means for the streaming industry. Then, we'll show you a streaming stock that just beat earnings expectations by more than 60% - and will continue to thrive, no matter who wins the streaming war.
Why the Streaming War Is a Facade
Just a few years ago, Hulu was a joint venture supported by several companies, including 21st Century Fox, Time Warner, Comcast's NBCUniversal and Disney. But now that Disney owns Fox and has upped its stake in Hulu, the company looks poised to usurp Netflix's dominant position in the market.
According to reports, Comcast has also struck an agreement with Disney for Hulu to continue carrying some of its most popular NBCUniversal network television content until at least 2024.
This content from NBC will be in addition to the original content Disney is developing for its exclusive streaming platform, Disney+, as well as its astounding library of Marvel and Fox Studios productions.
That's a huge war chest for Disney. And it's one its built at lightning pace.
But that's no reason to count Netflix out.
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While Disney may be hot on Netflix's tail, the nation's most popular streaming platform has plenty reason to stay confident.
In just the last five months, Netflix stock has risen 54% on strong earnings and stellar guidance, largely due to the company's relentless efforts to produce new content.
In 2018 alone, Netflix is rumored to have invested roughly $8 billion in the production of original content. That bought Netflix 700 potential new shows and over 80 new films for its platform.
That kind of production gives Netflix a significant edge over its competitors.
The numbers show the company might also have just the right competitive moats to stop any further market penetration. According to a report from Piper Jaffray, only 7% of Netflix subscribers are currently planning to cancel their Netflix subscription in favor of Disney's offerings.
But Netflix and Disney even have other heavy hitters to contend with. Amazon has widely been considered a leader in content quality, with a 75% average score for its library on Rotten Tomatoes and Alpha House. And Apple recently announced its own exclusive streaming service, backed by a host of media giants, including Stephen Spielberg and Oprah Winfrey.
For now, Disney's acquisition of Hulu is the latest shot in what's to be a long, drawn-out battle between streaming stocks.
Thankfully, we don't have to choose a winner. In fact, we can profit from the streaming boom no matter who takes the lion's share...
The Streaming War's Real "Big Winner"
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