Better Buy: Netflix vs. Warner Bros. Discovery
In the world of subscription video-on-demand, Netflix (NASDAQ: NFLX) and Warner Bros. Discovery (NASDAQ: WBD) are two of the biggest players. Both offer streaming platforms that operate across multiple countries, and both have growing subscriber counts. But which of the two stocks is the better buy? Let's break it down.
With the global streaming market expected to be worth almost $81 billion in 2022, competition among streamers has never been more intense. To contend with each other, the companies know they have to churn out movies and TV shows that people want to watch on a frequent cycle. This means content budgets have become somewhat of a yardstick for the streaming platforms and their ambitions.
Netflix committed $17 billion to new content this year, a figure it expects to spend again in 2023. Speaking on the company's recent fiscal 2022 third-quarter earnings, co-CEO Ted Sarandos suggested the figure was about right for Netflix. "I feel better and better about that $17 billion of content spend because what we have to do is be better and better at getting more impact per billion dollar spent than anyone else," he said.
Source Fool.com
