What is the "streaming profitability revolution"?

The streaming profitability revolution refers to a major shift in the streaming industry's business approach. Companies are moving away from focusing primarily on subscriber growth at any cost to prioritizing sustainable revenue and profit. This change is marked by price increases (like Peacock's recent hike), tiered subscription models, and the growing importance of ad-supported options. For investors, this represents potential opportunities as streaming services demonstrate pricing power and develop more mature, profitable business models.

Why are ad-tech companies included in this stock group?

Ad-tech companies are crucial to the streaming profitability revolution because they provide the technology that powers advertising on streaming platforms. As services like Peacock emphasize ad-supported tiers as part of their revenue strategy, the companies that deliver, measure, and optimize these ads become increasingly valuable. These ad-tech firms help streaming services maximize their advertising revenue through better targeting, measurement, and delivery systems, making them direct beneficiaries of the industry's shift toward profitability-focused models.

What does "pricing power" mean for streaming companies?

Pricing power refers to a company's ability to raise prices without losing a significant number of customers. For streaming services, demonstrating pricing power (as Peacock has done with multiple price increases) signals that they've built enough value through their content libraries and user experience that subscribers are willing to pay more. This is a healthy sign of business strength and can lead to improved profit margins. The streaming industry is now reaching a maturity point where established players can exercise this pricing power, potentially leading to better financial performance and returns for investors.

How do dividend yields and payment dates affect these stocks?

Dividend yields show the annual dividend payment as a percentage of the current stock price, indicating how much income you might receive from owning the stock. Dividend payment dates tell you when these payments are distributed to shareholders. While many streaming and ad-tech companies are still growth-focused and may not pay dividends, some traditional media companies in this group might offer dividends as part of their shareholder return strategy. For income-focused investors, stocks with regular dividends can provide steady cash flow in addition to any potential stock price appreciation.

15 handpicked stocks

Streaming Profitability Revolution

Discover a carefully selected group of stocks positioned to benefit as streaming services shift from chasing subscribers to maximizing profits. These companies, handpicked by our analysts, represent the future of media as streaming platforms flex their pricing power and prioritize sustainable growth.

Han Tan | Market Analyst

Updated 2 days ago | Published at जुलाई 18