Streaming content is an audio or video file on the Internet that can be played without being fully downloaded, significantly reducing wait times for online content, depending on the Internet connection speed. 

The content creation layer forms the foundation of the streaming ecosystem, which typically comprises four categories: film and TV studios, live media producers, game publishers and developers and user-generated content. This space focuses on companies that are involved in streaming music and video, including consumer-facing brands, and infrastructure and technology providers.

Here we recommend three streaming content behemoths with a favorable Zacks Rank to strengthen your portfolio. These are Netflix Inc. NFLX, The Walt Disney Co. DIS and Spotify Technology S.A. SPOT.

Competitive Landscape

The push for exclusivity on subscription video-on-demand and music platforms has intensified the content wars, forcing streaming firms to spend exorbitant amounts on content creation. 

As exclusive content remains a key differentiator with evolving competition from the metaverse and immersive digital storytelling, companies are increasingly vying for market share by offering compelling content libraries, unique features and competitive pricing. 

Buy 3 Streaming Content Bigwigs

These stocks have strong revenues and earnings growth potential for 2025. Moreover, these stocks have seen positive earnings estimate revisions over the last 30 days. Each of our picks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The chart below shows the price performance of our three picks in the past three months. 

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Netflix Inc.

Netflix reported excellent financial numbers for fourth-quarter 2024. The company reported earnings of $4.27 per share, which beat the Zacks Consensus Estimate by 1.67%. The figure jumped 102.4% from the year-ago quarter. Revenues of $10.24 billion increased 16% year over year and beat the consensus mark by 1.29%.

NFLX has maintained healthy engagement levels in the fourth quarter, with about two hours of viewing per member per day, indicating strong member retention. The company added 18.91 million subscribers (the biggest quarter of net adds in the company’s history) compared with 13.12 million net new subscribers in the year-ago period.

The average revenue per membership was up 1% year over year and 3% on foreign-exchange neutral basis in the reported quarter. At the end of the quarter, Netflix had 301.63 million paid subscribers across more than 190 countries, up 15.9% year over year.

Solid Guidance by Netflix

Netflix anticipates first-quarter 2025 total revenues of $10.416 billion, suggesting growth of 11.2% year over year. Management projected earnings of $5.58 per share for the ensuing quarter. For 2025, the company forecast revenues in the range of $43.5-$44.5 billion. NFLX is targeting a 2025 operating margin of 29%, up from the previous forecast of 28% and two points higher than the 27% operating margin in 2024.

Attractive Estimate Revisions for NFLX Stock

For 2025, the Zacks Consensus Estimate currently shows revenues of $44.43 billion, suggesting an improvement of 13.9% year over year and earnings per share of $24.58, indicating an increase of 24% year over year. The Zacks Consensus Estimate for current-year earnings has improved 4.6% in the last 30 days.

At present, the Zacks Consensus Estimate indicates a year-over-year increase of 11.6% and 20.5%, respectively, for revenues and EPS in 2026. The Zacks Consensus Estimate for next-year earnings has improved 6.2% in the last 30 days.

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The Walt Disney Co.

The Walt Disney reported first-quarter fiscal 2025 adjusted earnings of $1.76 per share, which beat the Zacks Consensus Estimate by 22.2% and increased 44.3% year over year. Revenues rose 4.8% year over year to $24.69 billion and beat the consensus mark by 0.1%.

As of Dec. 28, 2024, Disney+ had 124.6 million paid subscribers compared with 122.7 million as of Sept. 28, 2024. Domestic Disney+ average monthly revenue per paid subscriber increased from $7.7 to $7.99 due to increases in prices, partially offset by higher mix of subscribers to promotional offerings.

International Disney+ (excluding Disney+ Hotstar) average monthly revenue per paid subscriber increased from $6.78 to $7.19 due to increases in prices and higher advertising revenues, partially offset by a higher mix of subscribers to promotional offerings.

Hulu SVOD Only average monthly revenue per paid subscriber was comparable to the prior sequential quarter as lower advertising revenues were offset by increases in prices and higher mix of subscribers to multi-product offerings.

DIS is benefiting from growth in Disney+ subscribers and theme park and resort businesses. Recent attractions like the Frozen theme land at Hong Kong Disneyland and Walt Disney Park in Paris, as well as the Zootopia theme land at Shanghai Disney, are expected to boost the prospects of the theme park business.

Strong Guidance by DIS

For fiscal 2025, Disney expects high single-digit adjusted EPS growth compared to fiscal 2024. The company expects more than $15 billion in cash provided by operations. In Entertainment, DIS expects double-digit percentage segment operating income growth compared to fiscal 2024. The company projects Entertainment DTC operating income of approximately $875 million versus fiscal 2024.

Disney expects a modest decline in the second quarter of fiscal 2025 Disney+ Core subscribers versus the first quarter of fiscal 2025. For Sports, DIS expects Segment operating income to be adversely impacted by approximately $100 million due to college sports and one additional NFL game, and about $50 million from exiting the Venu Sports JV. In Experiences, DIS expects Disney Cruise Line pre-opening expense of around $40 million.

Impressive Estimate Revisions for DIS Stock

For fiscal 2025 (ending September 2025), the Zacks Consensus Estimate currently shows revenues of $94.62 billion, suggesting an improvement of 3.6% year over year and earnings per share of $5.47, indicating an increase of 10.1% year over year. The Zacks Consensus Estimate for current-year earnings has improved 1.3% in the last seven days.

At present, the Zacks Consensus Estimate indicates a year-over-year increase of 5.5% and 12%, respectively, for revenues and EPS in fiscal 2026 (ending September 2026). The Zacks Consensus Estimate for next-year earnings has improved 0.2% in the last seven days.

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Spotify Technology S.A.

Spotify Technology reported mixed financial numbers for fourth-quarter 2024. SPOT reported quarterly adjusted earnings of $1.88 per share, missing the Zacks Consensus Estimate of $1.92 per share. This compares to loss of $0.39 per share a year ago. The company posted quarterly revenues of $4.53 billion, surpassing the Zacks Consensus Estimate by 3.81%. 

Total Monthly Active Users (MAUs) were 675 million versus the consensus estimate of 665.25 million. Ad-Supported MAUs were 425 million against the consensus estimate of 420.15 million. Premium Subscribers came in at 263 million compared to the consensus estimate of 259.99 million.

Solid Estimate Revisions for SPOT Stock

For 2025, the Zacks Consensus Estimate currently shows revenues of $18.83 billion, suggesting an improvement of 11.1% year over year and earnings per share of $10.30, indicating an increase of 73.1% year over year. The Zacks Consensus Estimate for current-year earnings has improved 20.8% in the last seven days.

At present, the Zacks Consensus Estimate indicates a year-over-year increase of 14.8% and 27.2%, respectively, for revenues and EPS in 2026. The Zacks Consensus Estimate for next-year earnings has improved 16.3% in the last seven days.

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