The Zacks Analyst Blog Highlights: Netflix, Apple, Amazon and Disney

For Immediate Release

Chicago, IL –December 11, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Netflix NFLX, Apple AAPL, Amazon AMZN and Disney DIS.

Here are highlights from Tuesday’s Analyst Blog:

India Streaming Market Set to Boom, Netflix (NFLX) Eyes Expansion

Netflixhas been focusing on strengthening its footprint in India’s growing video streaming market, which now has 39 companies offering streaming services, up from nine in 2012.

The company recently announced that it will spend $420 million this year and next on producing original content for the audience in India.

This is the first time the streaming giant has disclosed a content budget for the market and comes amid increased adoption for online content and growing competition in Asia's third-largest economy.

India’s Streaming Market Growth Potential Aplenty

India’s rapidly-expanding video streaming user base presents strong prospects for global video streaming service providers including Netflix, Apple, Amazon, Disney, Zee5, Alt Balaji, Voot and MX Player.

Per a TechRadar report, India roughly has a video streaming audience base of more than 300 million, which is expected to increase by over 550 million in the next four years.

Per a Financial Express report, there are 46.15 million subscriptions for streaming premium services in India, which is set to increase to 92.32 million by 2024.

Netflix’s India Footprint Expanding Amid Rising Price War

Netflix’s monthly subscriptions start at INR 500, which does not allow simultaneous viewing. Higher priced plans of INR 650 and INR 800 allow multiple users and simultaneous viewing.

Netflix has a lower number of viewers in India as it faces stiff competition from international and local service providers due to its relatively high prices and limited local language content.

Disney owned Hotstar, which controls nearly three-fourth of the market, offers a VIP plan for INR 365 a year and a premium plan at INR 999 per year with 15 million subscribers in 2019 so far.

Additionally, Amazon’s prime video has a monthly plan of INR 129 and an annual membership of INR 999 that includes mobile access with 6.75 million total subscribers in 2019.

Moreover, local companies like Eros Now, Zee5 and ALTBalaji with 6.27 million, 4.64 million and 3.7 million subscribers are among the top 5 service providers in 2019 so far.

Further, the entry of Apple TV+ at INR 99 per month and the upcoming launch of Disney+ is expected to intensify streaming war in India.

However, Netflix has lured mobile phone users with the recent launch of a cheaper subscription of INR 199 per month and continuous original regional content expansion to boost declining subscriber growth.

Original Productions, Key Catalyst for Netflix

Netflix has been able to expand its presence to 190 countries and win subscribers rapidly owing to growth in regional content, its award-winning portfolio and partnerships with top local content creators and artists.

The company is estimated to spend $15 billion this year on global content compared with $12 billion spent in 2018.

India has emerged as a crucial content hub for the streaming giant. The streaming giant has commissioned around 40 original series and films in the country, including 15 original series and about 24 original local language films in the country to date.

Netflix is riding on the success of Sacred Games and animated kids show Mighty Little Bheem, which received global success. Mighty Little Bheem had more than 27 million households outside India.

Additionally, its shows like Ghoul, Selection Day, Little Things, Lust Stories and Delhi Crime were well received by the audience as well as critics in India.

Per The Statesman report, Netflix has a pipeline of around 24 feature films and 16 web series in India. These shows are in various genres such as young adult, drama, thriller, horror and comedy.

Moreover, the company has partnered with big production houses in the country like Dharmatic Entertainment, Red Chillies Entertainment and Clean Slate Films.

Some of the new shows to be added to Netflix in India include Ghost Stories, which is a sequel to last year’s Lust Stories, Tribhanga, Freedom and Class of ’83, produced by Red Chillies.

The slate of new shows is expected to help Netflix achieve its goal of 100 million customers in India, which is almost 25 times its current estimated subscriber base, per a Bloomberg article.

Zacks Rank

Netflix, Hotstar-parent Disney, Apple and Amazon currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Click to get this free report The Walt Disney Company (DIS) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research