Who Is The King Of Streaming Content? Netflix Or Amazon?

Hey everybody Dave Bartosiak with Trending Stocks at Zacks.com. Make no mistake about it, content is King. It’s how HBO became a powerhouse. It’s what transformed Netflix (NASDAQ:NFLX) into a household name. And it’s what makes me and the guys back worth our weight in gold. #BeardGameStrong.

The mad land grab for talent used to be restricted to the cable networks just like ugly guys with nice voices were trapped in radio before Sirius XM (NASDAQ:SIRI) made Howard Stern into a bazillionaire. Now every streaming service in the world is bidding for content.

My favorite car show ever, Top Gear, was cancelled after the host punched a producer. But Amazon (NASDAQ:AMZN) rushed in to offer the team a contract to put their show on Amazon Prime. The Grand Tour debuted last week and frankly, it was awesome.

Now Netflix announced the funniest man of my generation is coming back to do three specials. Dave Chappelle just landed a deal worth $60 million. That’s $10 million more than Comedy Central offered him for season 3 of the Chappelle Show. Netflix already has a huge deal in place with Disney (NYSE:DIS) it struck back in 2012 and has been producing great original content like “Narcos” and “House of Cards” for years. If you’re looking to learn a little financial literacy and laugh at the stock market, hey, Netflix, #WhatAboutDave. The bidding starts at $10 million. Cash.

How can you profit from the growth of streaming TV? You could check out the companies that are bundling streaming services together like Dish Network’s (NYSE:DIS) Sling TV. But frankly, I don’t feel like there is any barrier to entry there other than your ability to negotiate a contract. So maybe the best way to play this is to load up on Netflix and hope they reach international audiences before Amazon does. Amazon is at a better price point at $90 a year and includes a subscription to Prime.

As for our take, Netflix is a Zacks Rank #2 (Buy) right now. That means that analysts that follow the stock keep increasing the amount of money they think Netflix is going to make this year and next year. In fact, 13 analysts have pushed up their earnings estimates for the current year. The average of their estimates or our Zacks Consensus Estimate has gone from 31 cents to 41 cents for this year. Next year’s average has gone from 96 cents to $1.02.

Every time you share this video, I get one step closer to the What About Dave Netflix special. Chime in the comments section below, let me know if you subscribe to Netflix or you’re just stealing your ex’s log-in info. Subscribe to the YouTube channel, Twitter @bartosiastics, and come back here for all the Trending Stocks with Zacks.com, I’m Dave Bartosiak.