News Release
The Streaming Stocks Capitalizing on the Gaming Boom
QYOU Media
ValueTheMarkets.com News Commentary - With so much money on offer, it’s no wonder that the streaming specialists who already dominate the film and TV entertainment market are so keen to start benefitting from the growth of gaming. This article discusses this issue with reference to Netflix (NASDAQ: NFLX), Walt Disney Co (NYSE: DIS), Apple (NASDAQ: AAPL) and QYOU Media (TSXV: QYOU) (OTCQB: QYOUF). QYOU Media (TSXV: QYOU) (OTCQB: QYOUF) is currently focused on building a media brand that appeals to young Indians through its influencer-led TV and video-on-demand content. The company makes money from ad sales on its channels and through social media-based influencer marketing campaigns. Having already launched three new channels in 2022 and achieved the fastest channel growth in 2021 with its flagship Hindi-language offering, the business is achieving considerable growth. Now, the company has announced that it’s increasing its presence on Indian connected TV and digital platforms with the launch of a new channel – Q GameX. The reasoning behind this move is clear. This year the gaming industry is expected to surpass $208bn in revenue and statistics suggest that the number of gamers around the world will exceed three billion people. India is expected to be home to 450 million online gamers by 2023, putting it behind only China in terms of the number of users. Alongside this anticipated growth in audience is growth in the industry, with India’s gaming industry expected to reach $5bn by 2025, mainly driven by a rapidly increasing young population with higher disposable income. The new channel, Q GameX, will stream gameplay matches and battlegrounds while taking viewers through some interesting insights on consoles and gaming equipment, unboxing experiences, tips and tricks and much more. The company’s ultimate aim is to engage with digitally savvy young adults and monetize their viewership by working with brands and advertisers. QYOU ’s attitude to programming is similar to its other channels. The business will leverage content from a wide array of top social media influencers and digital content creators, serving it to a highly engaged audience 24/7. The channel, which is scheduled to launch in September 2022, will target the 18–35-year-old demographic. The Q India COO and leader of connected TV platform efforts, Krishna Menon, commented: “We are executing on our goal this year of becoming a leading provider of genre-based channels to audiences adopting Connected TVs as a primary destination for their viewing time". “Our unique and socially connected content style is perfectly aligned with what this audience is looking for. We expect more channel launches to be announced this year and of course, we believe that Q GameX can be a big winner on these platforms.” Netflix (NASDAQ: NFLX) is another business looking to take advantage of the popularity of gaming. The streaming service giant was founded in 1997 and originally made its name as a movie rental service before becoming the biggest name in streaming. Now, the company is turning its attention to the world of gaming. The move started with the company’s ‘choose your own adventure’ style on-off episode of Black Mirror, titled Bandersnatch, which was released in December 2018. The interactive show allowed users to make choices and change the narrative, allowing them to experience different plots and endings. This was Netflix dipping its toes in, but appears to have been a sign of things to come. After launching a series of mobile games in November 2021, the company has been consistently releasing new game content. It has currently built up a portfolio of more than 20 titles. The company’s emphasis is on accessibility for all users, with the goal being increased engagement from subscribers. To this end, it has acquired several development studios and claims to have a strong pipeline of new releases for the next couple of years. Walt Disney Co (NYSE: DIS) is another entertainment giant which has an eye on the gaming space. The company has a long history of engaging with gaming, with releases coming in the form of numerous movie tie-in titles and standalone efforts featuring famous characters such as Disney Infinity and Epic Mickey. September will see a major new release for the company with copies of Disney Dreamlight Valley hitting the physical and virtual shelves in early access form. This title, which is available across all major console platforms, is free to play and will allow gamers to solve mysteries, embark on quests and build their own village, all while accompanied by Disney’s famous roster of characters. Back in 2020, it was reported that the company was looking to team up with game studios in order to increase the number of titles featuring Disney-owned intellectual properties. With enormous properties like Star Wars, The Simpsons, The Marvel Cinematic Universe and much more besides in its back pocket, Disney is well-placed to benefit from a big push into the gaming industry. Another business with one eye on streaming and another on gaming is Apple (NASDAQ: AAPL). The company hasn’t always been the friendliest to gamers, with macOS still limiting the titles that users can access compared to the wealth of gaming riches available to PC users. Additionally, the company designed the now largely forgotten PiPP!N console in the mid-1990s. This console performed poorly as it tried to compete in a saturated market full of more warmly received competitors. However, recent years have seen the company attempt to embrace the gaming market more and more, with the most significant move being the launch of Apple Arcade in September 2019. This is a subscription-based service that offers gamers access to a range of titles without advertising, in-game transactions, data tracking, or the need for a constant internet connection. A report released by JPMorgan analyst Samik Chatterjee estimated that the platform will be pulling in revenues of around $1.2bn by 2026, compared to around $7bn from the Apple Music streaming service. Combined, the Apple Store, Apple TV+, Apple Music and Arcade reported revenue of $19.82bn in the three months ended 31 March, though Apple has not released a breakdown of which service produced what. Apple’s offering is minor and focused on mobile titles at the moment, but the company is more than capable of backing a more significant push into the gaming market. ValueTheMarkets.com News Commentary IMPORTANT NOTICE AND DISCLAIMER PAID ADVERTISEMENT This communication is a paid advertisement. ValueTheMarkets is a trading name of Digitonic Ltd, and its owners, directors, officers, employees, affiliates, agents and assigns (collectively the Publisher) is often paid by one or more of the profiled companies or a third party to disseminate these types of communications. In this case, the Publisher has been compensated by QYou Media Inc. to conduct investor awareness advertising and marketing and has paid the Publisher the equivalent of one hundred and ninety thousand US Dollars to produce and disseminate this and other similar articles and certain related banner advertisements. This compensation should be viewed as a major conflict with the Publishers ability to provide unbiased information or opinion. CHANGES IN SHARE TRADING AND PRICE Readers should beware that third parties, profiled companies, and/or their affiliates may liquidate shares of the profiled companies at any time, including at or near the time you receive this communication, which has the potential to adversely affect share prices. Frequently companies profiled in our articles experience a large increase in share trading volume and share price during the course of investor awareness marketing, which often ends as soon as the investor awareness marketing ceases. The investor awareness marketing may be as brief as one day, after which a large decrease in share trading volume and share price may likely occur. NO OFFER TO SELL OR BUY SECURITIES This communication is not, and should not be construed to be, an offer to sell or a solicitation of an offer to buy any security. INFORMATION Neither this communication nor the Publisher purport to provide a complete analysis of any company or its financial position. This communication is based on information generally available to the public and on an interview conducted with the companys CEO, and does not contain any material, non-public information. The information on which it is based is believed to be reliable. Nevertheless, the Publisher does not guarantee the accuracy or completeness of the information. Further, the information in this communication is not updated after publication and may become inaccurate or outdated. No reliance should be placed on the price or statistics information and no responsibility or liability is accepted for any error or inaccuracy. Any statements made should not be taken as an endorsement of analyst views. NO FINANCIAL ADVICE The Publisher is not, and does not purport to be, a broker-dealer or registered investment adviser or a financial adviser. The Publisher has no access to non-public information about publicly traded companies. The information provided is general and impersonal, and is not tailored to any particular individuals financial situation or investment objective(s) and this communication is not, and should not be construed to be, personalized investment advice directed to or appropriate for any particular investor or a personal recommendation to deal or invest in any particular company or product. Any investment should be made only after consulting a professional investment advisor and only after reviewing the financial statements and other pertinent corporate information about the company. Further, readers are advised to read and carefully consider the Risk Factors identified and discussed in the advertised companys SEC, SEDAR and/or other government filings. Investing in securities, particularly microcap securities, is speculative and carries a high degree of risk. Past performance does not guarantee future results. FORWARD LOOKING STATEMENTS This communication contains forward-looking statements, including statements regarding expected continual growth of the featured companies and/or industry. Statements in this communication that look forward in time, which include everything other than historical information, are based on assumptions and estimates by our content providers and involve risks and uncertainties that may affect the profiled companys actual results of operations. These statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results and performance to differ materially from any future results or performance expressed or implied in the forward-looking statements. These risks, uncertainties and other factors include, among others: the success of the profiled companys operations; the size and growth of the market for the companys products and services; the companys ability to fund its capital requirements in the near term and long term; pricing pressures; changes in business strategy, practices or customer relationships; general worldwide economic and business conditions; currency exchange and interest rate fluctuations; government, statutory, regulatory or administrative initiatives affecting the companys business. INDEMNIFICATION/RELEASE OF LIABILITY By reading this communication, you acknowledge that you have read and understand this disclaimer in full, and agree and accept that the Publisher provides no warranty in respect of the communication or the profiled company and accepts no liability whatsoever. You acknowledge and accept this disclaimer and that, to the greatest extent permitted under applicable law, you release and hold harmless the Publisher from any and all liability, damages, injury and adverse consequences arising from your use of this communication. You further agree that you are solely responsible for any financial outcome related to or arising from your investment decisions. TERMS OF USE AND DISCLAIMER By reading this communication you agree that you have reviewed and fully agree to the Terms of Use found here https://www.valuethemarkets.com/terms-conditions/ and acknowledge that you have reviewed the Disclaimer found here https://www.valuethemarkets.com/disclaimer/. If you do not agree to the Terms of Use, please contact valuethemarkets.com to discontinue receiving future communications. INTELLECTUAL PROPERTY All trademarks used in this communication are the property of their respective trademark holders. Other than valuethemarkets.com, the Publisher is not affiliated, connected, or associated with, and the communication is not sponsored, approved, or originated by, the trademark holders unless otherwise stated. No claim is made by the Publisher to any rights in any third-party trademarks other than valuethemarkets.com. AUTHORS: VALUETHEMARKETS valuethemarkets.com and Digitonic Ltd and our affiliates are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above. This article does not provide any financial advice and is not a recommendation to deal in any securities or product. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance. ValueTheMarkets do not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above piece. ValueTheMarkets have been paid to produce this piece by the company or companies mentioned above. Digitonic Ltd, the owner of valuethemarkets.com, has been paid for the production of this piece by the company or companies mentioned above. Contact Details ValueTheMarkets ValueTheMarkets +44 141 530 4080 editor@valuethemarkets.com Company Website https://www.valuethemarkets.com
August 17, 2022 11:00 AM Eastern Daylight Time
News Release
