The New Streaming Giants War

Streaming Market Set to Become Major in 2021

It has been now a year that the planet is living under intermittent lockdowns, curfews and social restrictions. As a result, entertainment sources have switched from social gatherings to online enjoyment, video streaming becoming the main activity for a majority of households.

This means that Netflix, Amazon, Disney – who launched Disney+ at the end of 2019 – or even Youtube’s parent share, Google, have dramatically soared in the past twelve months. This successful strategy has led several companies, including Verizon’s Discovery to launch new services, or even Vimeo to announce its IPO in 2021.

Although a vaccine is on its way, winter weather and long nights might help this trend grow.

Discovery is launching its streaming service

2020 pushed the digital transition for all cable channels, mainly due to global lockdowns and stay-at-home orders that pushed billions of people to seek entertainment online.

January started right off the hook with Discovery announcing it will launch its own streaming service with a very competitive monthly subscription at $4.99 a month, confirmed CNBC

In a savvy strategy, Discovery announced it will give a free first year to all Verizon’s 55 million customers. 

The low cost is a direct threat to WarnerMedia’s HBO Max, which costs $14.99 a month, and Netflix, which raised its standard plan to $13.99 a month in Oct., adds CNBC.

All eyes are on the sponsors and how many Discovery+ will manage to sign, although first deals have already raised interest – from media partnerships with Boston Beer Company, Kraft Heinz, Lowe’s and Toyota.

Read on Alvexo: “Big Tech Companies Are Big Winners in 2020”

In 2021, Vimeo will launch its IPO

Traditional broadcasters are not the only ones to eye on the streaming industry. 

Earlier in December, Vimeo’s parent company IAC said Vimeo “achieved a $2.75 billion valuation in early November after raising $150 million in equity from Thrive Capital and GIC”, explained CNBC. Vimeo will become the eleventh company to launch its IPO under the IAC holding.

The announcement on December 22nd made IAC’s share jump by 16%, reaching $198 a share.  

Vimeo subscribers have gone up by 24% in November, making it the world’s leading independent video content streaming platform. 

Disney+ set to surpass Netflix in 2022

Disney+ was supposed to be just another nice addition to the Disney empire; except COVID-19 crushed Disney’s parks, hotels and hospitality activities.

Disney+ became the main focus of the Hollywood legendary brand and with a strategic campaign, it managed to get ten million subscribers in the first day with a monthly subscription of $7.

According to eMarketer analysts, once the subscription will increase, revenue will “translate into about $1 billion in additional revenue in 2021”, notes Motley Fool.

In 2022, that number will probably reach $4.2 billion in annual revenue, thus surpassing Netflix.

The above content is considered to be market commentary information and shall not be perceived as independent investment research or investment advice.

 

Note: The opinions expressed in this article are the author's own and do not necessarily reflect the view of Alvexo on the matter.