Think you’ve got a bead on the digital content industry? There are more players nipping at Netflix’s (NASDAQ:NFLX) heels than you might think, and even though none of them alone are even a strong runner-up to Netflix’s (admittedly waning) dominance in the world of on-demand video … collectively, these names are a threat to the current leader’s status.
The irony? The best way for investors to make a play in the streaming content business might not even be with a streaming video stock.
First things first, though: A look at — and quick update on — the major names making waves in the digital content business. In alphabetical order:
Amazon (NASDAQ:AMZN) was built on sales of books, then sales of all other types of physical goods. As consumer tastes have changed, though, Amazon has adapted. Its Prime members ($79 per year) have free access to a collection of television programs and movies that’s about a third to half the size of the Netflix library, and to get the good/new stuff, viewers must pay a fee for access to each video.
Amazon is making a dent, though, as the number of people who used Amazon Prime in September was 30% higher than it was February, from 17% of the market to 22%.
The former king of VHS rentals is now owned by DISH Network (NASDAQ:DISH), and the company has created a compelling hybrid service, where customers can view on-demand videos on a per-program basis, as well as rent DVDs. The twist is that customers can swap them by mail, or through Blockbuster stores, or both. The entry price of $9.99 per month only gets you one DVD at a time, though, which doesn’t feel like enough to consumers who can get essentially the same through Netflix.
It should come as no surprise that the Internet giant would try its hand at television, though Google (NASDAQ:GOOG) has yet to do anything all that disruptive despite a fairly slick technology that turns your television (and other devices) into a web-connected smart TV. It might be uninteresting because Google neither creates nor provides any content; the hardware is just a middleman.
Time Warner (NYSE:TWX) owns HBO, so by extension, it owns HBO Go … a service that looks and feels like Netflix, but with less content (though higher, HBO quality). The good news: It’s free with your HBO cable subscription. The bad news: It’s not available to anyone who’s not a regular cable-HBO customer … yet, anyway.
The joint venture between Comcast (NASDAQ:CMCSA), Disney (NYSE:DIS) and News Corp (NASDAQ:NWSA) could have been a threat to the likes of Netflix, and in some ways it is. But, given the names behind the company, Hulu’s premium service has been surprisingly anemic. That might be because all those owners had other (and sometimes competing) interests and never gave it a fair shake.
The name of this Apple (NASDAQ:AAPL) property might be a tad misleading, as the site offers more than just music. Members can purchase a good-sized number of shows and movies on a per-piece basis. Still, Apple only controls 4% of the video-streaming market, and AppleTV seems to be struggling just to tread water.