This year is the year of the streaming war and who's gonna win? we'll find out in this video Please consider subscribing for one new video every day to help you become a better investor the 12th of November this business is going to launch Disney Plus and it's going to cost about seven years per month the subscription and It's going to quickly affect the business of Netflix net big hundred the streaming key for years, but now there is more competition Not only from this name it also from Apple and Amazon So let's look at all these four companies because in the streaming space right now. These are the full main companies Let's first look at all and Amazon because these companies they are not media companies They do other things but now the water and the streaming happen with Apple TV Plus and Amazon with Amazon Prime So let's look at Apple first Apple they have a lot of money It is a trillion dollar company and they have lost yet 64 billion euros in cash flow So they have a lot of money in order for them to create content or to acquire content to play on their platform so it is possible for them to do that and they have to do it because they want to get away from Concentrating on the iPhone they want to increase sales in Services and also because they have so much money that they have to do the money Because money just sitting in the bank is not going to profit anyone It's not going to profit the companies are going to profit the shareholders So, of course they have to use the money and they cannot keep on buying back their shares So that's a good use of their money.
They are going to enter this space but is it going to be successful? That's something we'll find out later. Now. Let's come back to Amazon Amazon. They have 17 billion u.s Dollars last year in free cash flow and they still are growing their online business the online platform for e-commerce because most people still shop In normal shops at world world world world still has a lot Revenues on Amazon so they have to still work on that and not the what to work on Amazon Prime They want to create content they want to buy content So it's something that they can do by the of course It will be less effective than Apple because Apple has four times more money than Amazon to spend on this now let's come to Netflix Netflix is already the king of streaming if you want to stream anything today, you will go under facilities and The problem with net-based is that they are losing a lot of money they have an again in free cash flow and Why it's the case is because they don't make the products themselves They have to hire the rights to stream this on their service So that acquire the rights from dismay from Comcast from AT&T from all the other companies all the other media companies They are going to acquire the rights to show this on the on the streaming platform And also they have the original the net the original such as house of cards all these things All these shows were made by Netflix themselves But in order for you to create such a show You need a big investment and that's why they have a negative regard flow is the announced loss that will none of the license their shows to Netflix and when you talk about the decision it's not just on the Disney Channel, please ABC there is One of the Fox networks now that the Disney justify 21st Century Fox so all of this event more well pic saw and Saw was all of this will not be sure on athletes once the contract that Howard Disney expires So what Disney also do is that they want to create their own platform, you know, that is for streaming so there they have created Disney Plus and this day Plus will be available in November this year it will be Half the price of Netflix for the subscription. So I believe that initially people will be subscribing for both but if you consider that Disney already owns Hulu 60% of Hulu and Hulu It's the main competitor on Netflix right now So if you want to watch any Disney made productions any Disney made shows and Disney movie When I've talked about the same code in our ABC about Marvel about Star Wars all of these things you will wash it on Disney Plus now if you want to watch anything else things made by NBC network or Any other networks, which is not owned by Disney then you are able to watch them on Hulu, which is 60% owned by Disney So in both ways, of course, they are the majority shareholder of Hulu they are going to make a way to bundle this one let's see you of this type of Idols, and he told you that they are going to make partners and the already on ESPN plus we had about 10 billion a lot of free cash flow Co so they can of course spent this money in order to complete with Netflix and the advantage that Disney has of a necklace is that they have content they have been creating content great content for Essentially now and they already have all this content to show on a platform While they fix they have to license if they have to buy the license to show this on their platform. So this is the main Competitive edge that Disney has over all these companies Apple has the money Amazon also have some money Net things they already have the existing platform. They already have the subscribers and Disney they have the content but content is key and it's important to have good content people watch my videos Because I have good content if I make crappy content people will not be watching my videos So of course Disney will be able to use this in order to put their shows on disciplines and All the shows that they are they are not producing will be shown on Hulu and I believe that the world they would want acquire More often. So what would happen with net fish in the long term? I don't know but right now the stock for a company making 1.2 billion US dollars in net income last year and the market capitalization of 153 billion US dollars is flex expensively. It was never good investment to invest in that fish I said that the best and invest in Netflix was the eight years ago in 2011 that thought that it's but at that time nobody would have known what net this would become and Today it's a bad investment to invest in that fish.
Even if right now this day Plus has zero subscribers They are still going to the war win that face because it's hard for Netflix Even Apple cannot compete with Disney with an amount of content that Disney has with the amount of content that they are still Producing so let me know in the comments. What do you think who will win this war? Thank you for watching this video Please like subscribe and share subscribe for one new video every day about the stock market about investing and about Entrepreneurship to help you become a better investor. Have a nice day and goodbye .