The global streaming market added $123 billion to its market capitalization over the past year, with Netflix Inc. (NFLX) and Disney+ leading the charge.
Market Move
The surge in streaming platforms has led to a 14% year-to-date gain for the media sector, outperforming the S\&P 500 by 4 percentage points.
This represents a $123 billion increase in market capitalization, with Netflix and Disney+ accounting for $60 billion and $30 billion of that growth, respectively.
Drivers
The shift to streaming is driven by the increasing demand for on-demand content, with 70% of consumers preferring streaming services over traditional linear TV, according to a survey by Deloitte.
Netflix’s $15.8 billion investment in original content last year has paid off, with the company reporting a 27% increase in subscribers to 220 million.
Disney+, meanwhile, has seen a 40% rise in subscriptions to 120 million, despite launching only two years ago.
Cross-Asset Impact
The growth of streaming platforms is also having an impact on the advertising sector, with Alphabet Inc. (GOOGL) and Facebook Inc. (FB) seeing a decline in ad revenue as consumers switch to streaming services.
This has led to a 5% year-to-date decline in the ad-supported media sector, which includes companies such as ViacomCBS Inc. (VIAB) and AT&T Inc. (T).
Reactions/Quotes
“The shift to streaming is a major disruption to traditional media models,
