Competition in the video streaming space is heating up, as established players fight it out with new entrants.
Against this backdrop, Netflix Inc NFLX seems to have fortified its position, according to an analyst at Piper Sandler, citing the firm's 39th semi-annual Taking Stock with Teens survey — a national study of over 5,200 teens.
Netflix Leads In Teen Mindshare
After ceding the lead to Alphabet Inc's GOOGL GOOG YouTube in the fall 2019 survey, Netflix has regained the lead, with teens spending 33% of their time watching Netflix, analyst Yung Kim said in a Wednesday note.
This represents a decline from Netflix's 35% share in the fall 2019 survey, the analyst said.
"Overall, we believe Netflix continues to maintain strong teen mind share and attribute the modest dip across the top platforms to the inclusion of the new services," he said.
Kim said he's of the view that Netflix is the leader among subscription services that contains massive multiyear growth potential as more content viewing shifts online.
YouTube Falls Behind
YouTube's numbers slid from 37% in the fall 2019 survey to 31%, pushing the Google-owned platform to the second spot, Kim said.
Cable and satellite TV, though taking the third position, has seen its share dip from 12% to 11%, the analyst said.
New Entrants Make Waves
Walt Disney Co's DIS Disney+ and Apple Inc.'s AAPL Apple TV+, both launched in November 2019, were ranked fifth and seventh, respectively, with teens spending 7% and 2% of their time on the platforms, Kim said.
Hulu and Amazon.com, Inc. AMZN stood in the fourth and sixth position respectively, at 8% and 3%.
"While we recognize investor concern, particularly around Disney+, taking share, we believe the diversity of the Netflix portfolio and the pace of new content gives Netflix an advantage," the analyst said.
Piper Sandler sees increasing competition ahead, with AT&T Inc.'s T HBO Max launch scheduled for May, and unforeseen hurdles. Yet the firm is of the view that the market will support multiple large streaming players, with Netflix leading the way.
Kim maintained an Overweight rating on Netflix with a $400 price target.
The Price Action
Netflix shares were down 0.69% at $369.71 at the time of publication Wednesday.
Alphabet Class A shares were adding 2.31% to $1,209.85.
Disney shares were down 0.76% at $100.47.
Apple shares were surging 2.47% to $265.85.
Amazon shares were up 1.28% at $2,037.44.
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