Must-Watch Streaming Stocks Powering Digital Content Wave
The entertainment industry has experienced a dramatic transformation over the past 20 years, shifting from traditional cable television to digital, on-demand streaming. While early versions of streaming emerged in the 1990s, momentum truly accelerated with YouTube's launch in 2005 and Netflix's entry into video-on-demand in 2007. As smartphones became ubiquitous and broadband access expanded, streaming has become the dominant way audiences consume media. Industry giants like Netflix NFLX, The Walt Disney Company DIS and Roku, Inc. ROKU are part of this revolution, emerging as must-watch stocks within the streaming sector.
Streaming technology allows for instant access to video and audio content without downloads, providing a seamless experience across devices like smartphones, tablets and smart TVs. Consumers are drawn to the flexibility, fewer ads and binge-watching capabilities, prompting companies to pour billions into exclusive and original content amid the ongoing 'content wars.' Innovation continues to propel the industry. Broader global internet access, mobile-first consumption and AI-driven personalization are enhancing user experience. Meanwhile, the growing popularity of smart TVs and gaming consoles has widened streaming's reach.
According to research by Ampere Analysis, the global streaming market is projected to reach $190 billion annually by 2029 from 2 billion subscriptions. While Subscription Video-on-Demand remains dominant, Free Ad-Supported Streaming TV and hybrid models are gaining popularity. Live sports and interactive content are fueling engagement. For investors, the sector offers strong growth potential as companies pursue pricing power, ad-based models, strategic partnerships and global expansion.
So, if you want to join the bandwagon, our Streaming Content Thematic Screen could make it easy to identify high-potential stocks in this domain at any given time. Leveraging advanced tools, our thematic screens identify companies shaping the future, making it easier to capitalize on emerging trends.
Zacks Thematic Screens and discover your next big opportunity.
Netflix, originally a DVD rental service, revolutionized digital entertainment by launching its on-demand streaming platform in 2007. Leveraging its expansive content library and steadily expanding international reach, it evolved into a global streaming powerhouse and industry trailblazer.
With an estimated global audience exceeding 700 million when accounting for shared viewing, Netflix continues to solidify its dominance in digital entertainment. The platform maintains high engagement, averaging two hours of watch time per user daily, reflecting strong global product-market fit. Strategic partnerships with telecom giants are helping expand its international footprint, fueling subscriber growth and top-line momentum.
Netflix aims to double its revenues and reach a $1 trillion market cap by 2030. The company's growth strategy includes expanding its content library, advancing into live programming, scaling its gaming division and accelerating its advertising business. While live content remains a small share of total viewing, it creates significant value through high-impact moments that boost subscriber acquisition and retention.
A key growth engine is the ad-supported tier, which has seen strong uptake — more than 55% of new subscribers in available markets opt for it. Management expects to generate $9 billion in annual ad revenues by 2030. Coupled with its investment in localized, high-quality original content across global markets, Netflix is poised to sustain robust growth. Its international strategy and content innovation continue to reinforce its leadership in a competitive streaming landscape.
With exclusive NFL and FIFA rights, plus unmatched success in weekly streaming charts through diverse, original content, Netflix's expanding global subscriber base and accelerating ad business solidify its leadership and growth momentum. NFLX sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Roku holds the leading position in TV streaming by hours watched across the United States, Canada and Mexico. Originally launched in 2008 as a maker of streaming devices, the company has evolved into a full-fledged streaming ecosystem.
The company is seeing solid growth in the number of streaming households, fueled by demand for its stand-alone streaming devices, partnerships with TV brands like TCL, JVC, Sharp and other major TV makers who license the Roku OS to manufacture and sell Roku TV models, and licensing of the Roku OS to certain service operators.
Roku is also benefiting from strong advertising growth, driven by a surge in monetized video ad impressions linked to the increasing popularity of The Roku Channel. This momentum is reinforced by a steady migration of traditional TV advertisers to streaming and ongoing investments in its OneView ad platform and overall advertising technology ecosystem. ROKU sports a Zacks Rank #1.
Roku continues to demonstrate strong platform fundamentals with robust user engagement, innovative Home Screen monetization and expanding partnerships across the advertising and streaming ecosystem. Roku's Home Screen, accessed daily by 125 million U.S. users, serves as a powerful tool to boost engagement and subscription growth. The platform's AI-powered content discovery, personalized features and growing library of Roku Originals are enhancing the user experience and driving viewership. Collaborations with brands like Apple validate its influence in the streaming ecosystem.
Disney entered the streaming arena in 2019 with the debut of Disney+, quickly amassing a substantial subscriber base. Today, the company runs three flagship streaming services — Disney+, ESPN+ and Hulu — each tailored to serve different audience demographics and content preferences.
Disney+ showcases content from its extensive entertainment library, ESPN+ focuses on live sports, while Hulu offers a blend of original series and licensed content. Together, these platforms serve as long-term growth drivers, reflecting Disney's strategic shift from chasing subscriber numbers to building a more profitable streaming business. Disney+ has a rich and varied content portfolio. The platform offers a vast collection 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.
Disney's partnership with ITV in the United Kingdom highlights its creative cross-platform approach aimed at boosting subscriber value and broadening its audience base. The ESPN streaming service launch in Fall 2025 marks a significant revenue opportunity, unlocking a fresh income stream from Disney's most profitable content.
Combined with strategic partnerships like the Disney- Amazon AMZN advertising integration and Disney-ITV content sharing initiative, the company has created sophisticated monetization capabilities that significantly enhance revenue per user. Disney's bundle strategy continues driving higher retention rates while expanding international reach. DIS currently has a Zacks Rank #2 (Buy).
Profitable streaming is enabling Disney to reinvest in high-impact content, boosting not only engagement but also theatrical, merchandise and park revenues. With improved platform performance, bundling strategies and international expansion, Disney is transitioning from scale-building to long-term profitability.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Netflix, Inc. (NFLX): Free Stock Analysis Report
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