Top Streaming Stocks to Strengthen Your Portfolio in the Digital Age

Globe and Mail

5 days ago

An updated edition of the May 2, 2025 article.
Over the last two decades, the entertainment landscape has undergone a transformative shift, moving away from traditional cable television toward digital, on-demand streaming. Although early experiments with streaming surfaced in the 1990s, the real acceleration began with the launch of YouTube in 2005 and Netflix's video-on-demand service in 2007. The rapid adoption of smartphones, widespread broadband access and evolving consumer viewing habits have made streaming the dominant method for consuming media today. Industry giants like Netflix NFLX, The Walt Disney Company DIS and Spotify Technology S.A. SPOT have been at the forefront of this shift.
Streaming technology enables instant playback of video and audio content over the internet without requiring downloads, offering seamless performance with minimal buffering. Its accessibility across devices such as smartphones, tablets and smart TVs has reshaped media engagement. Audiences are increasingly drawn to the flexibility and convenience of viewing content on their own schedules, often with fewer advertisements than found on traditional platforms. To retain viewer interest, companies are investing heavily in exclusive and original programming, sparking an intense competition dubbed the 'content wars.'
Ongoing innovation continues to fuel industry growth. Expanding global internet coverage, the rise of mobile consumption and AI-powered personalization have enhanced the streaming experience. Additionally, the proliferation of connected devices like smart TVs and gaming consoles has broadened the user base for streaming services.
According to research by Ampere Analysis, the global video streaming market is expected to generate $190 billion annually from 2 billion paid subscriptions by 2029. While Subscription Video-on-Demand remains dominant, Free Ad-Supported Streaming TV and hybrid models are gaining popularity. Live sports, interactive events and gamified content are further deepening audience engagement.
For investors, streaming stocks offer an attractive prospect as top players continue to drive revenue growth through price adjustments, global expansion and the rising popularity of ad-supported platforms. Initiatives like localized content production and strategic partnerships are further enhancing their international presence, solidifying the streaming sector's reputation as a vibrant and potentially lucrative investment arena.
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Netflix, a pioneer in the streaming space, launched its on-demand streaming platform in 2007. Building on its extensive content library and steadily growing its global presence, the company transformed from a humble DVD rental service into a dominant force in the world of digital entertainment.
Netflix's growth outlook remains strong, driven by its aggressive investment in original content and collaboration with top-tier Hollywood talent. This strategy has significantly enhanced the appeal of its movies and series, helping Netflix stand out in an increasingly competitive streaming landscape. By producing high-quality, exclusive content, the company continues to strengthen its brand identity and viewer loyalty. These efforts not only attract new subscribers but also boost engagement and retention across existing markets, reinforcing Netflix's leadership position in digital entertainment. NFLX carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
International expansion has become a cornerstone of Netflix's success. The company's localized content strategy — focused on developing shows and films in native languages —has fueled subscriber growth across diverse markets. Strong viewer engagement, with average watch time nearing two hours daily per user, underscores the effectiveness of this approach. With projects underway in regions like India, Mexico, Germany, France and the Middle East and low-cost mobile plans gaining traction in price-sensitive countries, Netflix is unlocking new growth avenues beyond traditional Western markets.
Netflix has set its sights on doubling revenues by 2030 and reaching a $1 trillion market capitalization. Key pillars of this strategy include broadening its content library, building a live programming slate, growing its gaming segment and accelerating its ad-supported tier. The ad-supported subscription tier has already gained remarkable traction, with more than 55% of new subscribers in markets where it's available choosing the ad-supported option. Management projects advertising revenues to hit $9 billion annually by 2030, underscoring the potential of ads as a major driver of long-term, sustainable growth.
Disney made its foray into the streaming industry in 2019 with the launch of Disney+, rapidly attracting a large subscriber base. The company now operates three major streaming platforms — Disney+, ESPN+ and Hulu — each catering to distinct audience segments. Disney+ delivers content from its vast portfolio, ESPN+ centers on sports, and Hulu provides a mix of original series and licensed content. These platforms are positioned as key long-term growth engines, signaling Disney's transition from focusing solely on subscriber gains to prioritizing profitability.
Disney+ has become a major catalyst for Disney's growth, thanks to its strong and diverse content lineup. The platform features an extensive library of films and TV shows from some of the world's most popular entertainment brands, including Marvel, Pixar, Star Wars, National Geographic and exclusive Disney+ originals.
In the coming years, Disney plans to release several high-profile, big-budget films, many of which will be available on Disney+ at the same time as their theatrical debuts. This strategy is expected to boost viewer engagement and attract new subscribers, reinforcing Disney's competitive edge in the streaming market. DIS currently has a Zacks Rank #3.
To remain ahead in an increasingly crowded field, Disney is enhancing its streaming offerings. The addition of an ESPN tile on Disney+ and investing in platform improvements highlight its focus on user experience and content accessibility. Its emphasis on sports content, especially live sporting events, is anticipated to be a significant driver of long-term growth.
Spotify 's long-term growth trajectory is underpinned by its expanding presence across music, podcasts and audiobooks. Since its launch in 2008, Spotify has redefined audio streaming, consistently evolving its platform to meet user demand. With a catalog of more than 100 million tracks, nearly 7 million podcasts and hundreds of thousands of audiobooks, Spotify offers unmatched variety. Its move into podcasting and later into audiobooks has broadened its reach, positioning the company at the center of the digital audio revolution.
The platform's global scale — available in more than 180 markets with 678 million monthly active users — continues to fuel growth. Spotify's success in emerging markets, especially in Latin America and the "Rest of World" category, highlights its effective localization strategy. Its targeted efforts, such as low-cost mobile plans in countries like India and Indonesia and support for regional content, have allowed it to expand its subscriber base and deepen user engagement. This results in strong user retention and consistent revenue growth across both Premium and Ad-Supported models. SPOT currently has a Zacks Rank #3.
Spotify's strategic investments in product innovation and monetization are key growth drivers. The company is scaling its ad-tech capabilities, expanding its Spotify Ad Exchange and automated ad tools to better serve marketers. Simultaneously, its growing audiobooks and podcast ecosystem opens new monetization channels. Its ability to combine content, technology and data-driven personalization supports a clear path for long-term expansion and value creation.
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Netflix, Inc. (NFLX): Free Stock Analysis Report
The Walt Disney Company (DIS): Free Stock Analysis Report
Spotify Technology (SPOT): Free Stock Analysis Report