GfK, one of the world’s largest market research firms, has come out with some very telling stats about the viewing habits of Netflix (NFLX) users and other video streaming services. It seems that subscribers of these types of services watch more TV shows than movies.
Strategy Analytics estimates that internet-delivered video in North America is expected to hit $18 billion annually by 2019, exceeding those of movie theaters and DVDs. While this is really bad news for DVDs, it’s great news for content producers who specialize in TV shows such as House of Cards and Breaking Bad.
What does this mean for investors?
Well, it means that the stocks benefiting most directly from TV shows (i.e., cable networks that produce TV series) are going to see more revenue growth in the next few years than movie studios.
That being the case, these three media stocks will likely do better than most over the next 12-24 months. Content, more than ever, is still king: