3 Entertainment Stocks Dominating Streaming in 2024

Entertainment stocks are compelling picks for savvy investors.

With the global middle class expanding at a healthy pace and consistent demand for media, entertainment stocks will continue flourishing. Moreover, the seismic shift toward streaming has flipped the script on content consumption, laying the groundwork for digital and streaming dominance.

This transformation bodes remarkably well for the entertainment space, offering greater reach, lower distribution costs and more scalability than ever before. Moreover, streaming platforms can effectively use a massive amount of user data for targeted marketing and improve profit margins.

Keeping that in mind, investing in the right entertainment stocks could add a new dynamic to your portfolio. The article covers three of the best entertainment stocks with superb market presence and robust financial health. Their underlying businesses have capitalized on the ongoing transformation within the media landscape, making them attractive long-term picks in the niche.

Netflix (NFLX)

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Netflix (NASDAQ:NFLX) is a global juggernaut in the entertainment space and a pioneer in streaming services. From its humble origins as a DVD rental service, Netflix has spectacularly transformed into a streaming titan. As per its latest update, it boasts over 269.6 million subscribers, roughly 688% higher than the 34.2 million subscribers it had in the Q1 of fiscal year 2013.

What sets Netflix apart from its competition is its ability to evolve in a maturing market. Through impactful measures such as its crackdown against password sharing and introduction of advertising, Netflix has strengthened its competitive edge and sustained growth.

Furthermore, things will get even more exciting as it ventures into broadcasting live events and sports. It has signed a massive $5 billion deal to stream WWE’s Raw. Further, NFLX gained exclusive streaming rights for high-profile events such as Mike Tyson’s boxing match with influencer Jake Paul and an NFL game on Christmas Day.

TKO Group Holdings (TKO)

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TKO Group Holdings (NYSE:TKO) is the fastest-rising stock in the sports entertainment realm. Up over 35% year-to-date (YTD), TKO stock is on quite the run, marked by superb operational performances and attractive long-term prospects. The company combines two of the biggest entertainment powerhouses in the WWE and the Ultimate Fighting Championship (UFC). This fusion is set to substantially bolster revenues from media rights, event ticketing and merchandise. Also, it sets the stage for expansion into new arenas, including online betting.

The monumental success of WWE’s WrestleMania XL and UFC 300 is just the start of things to come for TKO. These landmark events broke several records, shedding light on the robust combination of WWE and UFC.

After a blowout quarter marked by healthy beats across both lines, TD Cowen boosted TKO stock’s rating. It’s now trading as a ‘buy’ from an earlier ‘hold’ rating, buoyed by strong Q1 earnings, easing regulatory hurdles and a promising deal with Netflix.

Alphabet (GOOG,GOOGL)

Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) has quietly built its media behemoth with YouTube, a platform that continues to dominate the streaming landscape.

It even outpaces the likes of streaming hours and other important metrics. It’s not hard to gauge why, considering its pioneering role in user-generated content. However, given Alphabet’s more flashy endeavors, such as generative AI, YouTube often flies under the radar.

A recent Nielsen report underscored YouTube’s expanding influence. In May, it captured nearly 10% of all U.S. TV viewership on connected and traditional TVs, ahead of Netflix’s 7.6%. Moreover, earlier in the year, YouTube premium subscribers surpassed the 100 million mark across its paid music and video services. These subscription tiers have become massive revenue streams within Google’s broader subscription services. These services collectively generated $15 billion last year. And with 100 million subscribers, it would be futile to take YouTube lightly.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.