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Which do you favor when tech giants fight to win subscribers?

This year, Netflix, Disney +, Amazon, and other streaming services appear to be determined to show skeptical investors that businesses like show business don’t really exist.

According to Ampere Analysis’s consultancy, these giants will spend more than $ 230 billion on movies and other content in 2022, double the total 10 years ago.

However, the scale of this spending aimed at gaining more subscribers and earning more income from them spotlights this sector as all tech stocks are being scrutinized. I am.

Streaming, which gained huge fans during the blockade, is becoming a more competitive area than ever before.

Other names in the conflict include Paramount owner Viacom CBS and WarnerMedia, where HBO Max provided Succession, a family drama about the powerful media-owned Roy clan.

WarnerMedia will merge with Discovery this year to create yet another candidate.

Particular focus is on Apple’s ambitions to become a $ 3 trillion company earlier this month.

The group, whose Apple TV division distributes shows such as Ted Lasso, is like a bit part player, but it’s easier to get billions of dollars than a rival in a streaming war.

Shares of the Bridgerton family, Emily, the road to Paris, and market leader Netflix, the maker of many other hits, have recently fallen. Some enthusiasts see this as an opportunity to help companies whose stocks have risen 5,000% over a decade to $ 530.

But given Apple’s ample funding, it’s wise to support Netflix, a $ 259 billion business.

Surprise 2021 We need to deliver more hits like smash squid games and make the video game a success.

Squid Game, a Korean drama about a contest where competitors play deadly versions of children’s games, could be a metaphor for the current state of the streaming sector, which is difficult to survive and more likely to be integrated.

The market may have made significant profits and finds future profits difficult. Many agree with analyst Moffett Nathanson’s assessment of Michael Nathanson.

He states: This is not a business for the weak, short-term, or limited by non-etheral concerns such as free cash flow and net debt.

Investing in every aspect of entertainment is always thrilling. I own a stake in Walt Disney and Netflix is ​​in several funds I own.

It is also included in the portfolio of several well-known investment trusts such as Alliance, F & C, Polar Capital Technology and Witan, and is owned by two trusts in Baillie Gifford Stables, Monks and Scottish Mortgage.

Among the challenges faced by combatants in the streaming war is increased US regulatory oversight of technology companies.

One of the transactions that could be affected is Amazon’s $ 8.45 billion purchase of MGM. This is a deal made to turn James Bond, the studio’s main asset, into a Marvel-type franchise.

The Walt Disney Kingdom may include Marvel, Star Wars, Disney, Pixar, and other franchises, whose global appeal is underpinned by resorts and theme parks.

However, its share has fallen 13% to $ 152 in the last 12 months. This is largely because it seems unclear if Wall Street has a superpower that prevented Bob Chapek, who took office as CEO a year ago, from slowing registration. Disney +.

With this question, Morgan Stanley has lowered its stock target price from $ 210 to $ 185, raising the question, “Disney has content products, can you do it?”

The goal for Goldman Sachs is $ 205. Netflix’s growth wasn’t very noticeable after the pandemic surge in 2020, which added about 37 million new subscribers.

In next month’s full-year performance, we need to announce that the increase of 222 million people worldwide, a good but 18.4 million people, is not noticeable.

There is already talk that the UK may be on “Peak Netflix”.

The younger generation has been taken over, but the older generation is more resistant, suggesting that the 25-year-old company may be in the “maturity”. This means that the initial rapid expansion may be nearing its end.

Rathbones’ David Coombs may limit households of all ages from spending on subscriptions to these services as their living costs bite, and may instead rely on free services such as the BBC and Channel 4. It states.

Over the next few months, the focus will be on the number of subscribers for all companies in the streaming business.

The fall will hurt stock prices, and those who are nervous about steel have a chance to buy.

In the long run, performance may be dazzling, but there are many shocks and surprises along the way.

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Which do you favor when tech giants fight to win subscribers?

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