The Top 2 Stocks of the Entertainment Industry
Entertainment is one of the biggest and most profitable industries in the world today. And here’s a heads up: the industry will soon enter a state of disruption. Bad news? Maybe for some. But for investors, this disruption is a great opportunity! Those who can identify the winners are bound to amass a fortune while those who fail to seize the chance, will be, no doubt, left behind.
Here are the two biggest stocks to watch in the entertainment industry this 2016!
Do you know that according to a survey conducted by nScreenMedia last March 2014, people spend more time watching online videos in Youtube than in Netflix? Youtube scored a whopping 48% while the latter lags far behind at 22%.
Google purchased Youtube last 2008 for $1.65 billion. During the acquisition, Youtube’s user base tops at 20 million per month. Today, this number has exploded to over one billion monthly users! Content creation is also on the rise with over 300 hours of video uploaded every minute. No wonder why millions of advertisers are flocking to it!
According to Merrill Lynch of Bank America, Youtube’s valuation can grow up to $90 billion. And thanks to the online video ad market, Youtube is on track to generate up to $13 billion in revenues by 2017.
If Google dominates the video industry, Apple is the king of the music world. Thanks to iTunes and the recently unveiled Apple Music Service — a combination of a 24-hour global radio station, music discovery tools and streaming service.
Aside from the music industry, Apple is also bound to own the TV market. For decades, the TV industry has been monopolized by cable companies with their bloated and expensive packages and good for nothing customer service. With the announcement of Apple TV, the entire TV industry is set for a complete overhaul.
For the record, Apple has already sold more than 25 million units of Apple TV. Though relatively minuscule in terms of Apple standards, the Apple TV is going for something big. As CEO Tim Cook puts it, “Apple TV will reinvent the way you watch TV. And this is just the beginning.”
According to The Wall Street Journal, Apple is working on a web-based TV service — a move in the right direction. Such service bundle will certainly add more fuel to the cord cutting fire and will further strengthen Apple TV’s position in the market.