2020 has been a defining year for streaming services. The lockdown has exponentially increased subscriptions for companies operating in the space.
In a recent report by Quartz, it called 2020 the defining year for Netflix. Lockdowns in the US and globally accelerated subscription growth for streaming services. It is a defining year for any streaming service in the space, let it be Amazon Prime or Disney+. It is even a defining year for non-traditional streaming services such as, Peloton which provides on-demand workout videos.
Netflix Adds 20 Million Subscribers in the First Half of 2020 (NASDAQ: NFLX)
Netflix was able to add more than 25 million subscribers in the first half of 2020. They had 193 million paying subscribers by the end of Q2. Their stock saw a 60% increase in their market cap from January 1st to October 7th, making them one of the S&P 500 top performers.
While they don't currently have any commercials on the platform, Netflix and other ad-free services expect to start leveraging product placement as a new revenue stream soon, which will lead to a significant increase in their advertising revenue in the long-term.
Disney+ Reports 73 Million Paid Subscribers in 2020 (NYSE: DIS)
Disney shares rose by 6% as Disney reported less drastic losses than expected, mainly due to increased revenue from Disney+ streaming service. The Covid-19 pandemic has significantly impacted Disney Parks, causing its revenue to decline by 61% year-over-year. The stock rose on the news of Disney+ acquiring 73 million paid subscribers.
An Exceptional Year for Pelton (NASDAQ: PTON)
2020 was a transformative year for Peloton. For the period ending on June 30th, their revenue increased to $1.8 billion, 100% year-over-year. Their subscription revenue increased to $121 million, a 99% increase year-over-year. The total number of paid Peloton subscribers was 3.1 million.
With COVID-19 cases on the rise again in the US and globally, experts anticipate that Peloton will have a strong first quarter of the fiscal year 2021.