Streaming companies have been forced to improvise due to the high volumes they have experienced due to the ongoing COVID-19 lockdowns. Predictably, people have opted to switch on the television in these difficult times. This has made streamers an interesting option in this volatile market.
Netflix (NASDAQ:NFLX) has seen the competition in the streaming space heat up, but it is still a heavyweight. Its shares rose 7.3% week-over-week as of close on March 27. The stock has increased 10% in 2020 so far.
The company has been forced to lower video quality in some regions due to very high volumes that put strain on its infrastructure. This is unlikely to drive viewers away in the near term. However, the halt on production in the entertainment sphere could present problems down the line as consumers exhaust their viewing options. This is true for its competition as well.
Disney (NYSE:DIS) stock has dropped 33% in 2020 so far. The media giant seemed unstoppable after launching its Disney+ streaming service in November 2019, but the ongoing work stoppage poses a huge threat to its revenue streams. Theatres, theme parks, and other entertainment venues will likely be closed through April 30. This means Disney will have to rely even more on its new streaming platform.
Fortunately for the company, it has seen subscribers surge in recent weeks. This is especially true in households with children under 10 years of age. Disney is in crisis mode, but its streaming platform has the punching power to carry it through this tough period.
