Cloud Capital: Netflix Scoffs at Apple and Disney Competition and SKYY Soars to 52-Week High

 
 
Investors are betting that Cloud will continue to drive the development of tech
Investors are betting that Cloud will continue to drive the development of tech
 
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NEW YORK - April 21, 2019 - PRLog -- In our lead story, Netflix doesn't anticipate new entrants to video-streaming will materially affect its growth due to the continued transition of live television viewing to on-demand streaming and its differentiated content. Plus, the company says Apple and Disney only add to a "huge pile" of competitors already looking to grab market share.

Americans are watching less television, reports Motley Fool. In 2013, the average American watched 4 hours and 30 minutes of television per day says the site. That fell to about 3 hours and 50 minutes per day last year. Meanwhile, digital video services account for a larger percentage of total watch time. Americans spent 1 hour per day watching digital content in 2015, and that number is now exceeding 1 hour and 22 minutes.

Indeed, consumers are spending more time streaming video, and that trend is especially prevalent among young people. In fact, millennials spend more time watching Netflix, on average, than they do watching traditional television. The shift is expected to continue well into the future. That means Netflix should be able to maintain its current growth trajectory as the market for total streaming content continues to get bigger.

Netflix certainly has differentiated content from what Disney and Apple are offering. Netflix is home to some of the most well-reviewed series on television. It's spending billions of dollars producing that content, so it better have some winners among the 700 or so original series it's produced.

That said, there's still plenty of competition out there already. Netflix ended the quarter with about 155 million total subscribers . There are currently about 500 million total over-the-top streaming subscribers globally, according to an estimate from IHS Markit. So Netflix accounts for about 30% of streaming subscriptions showing the company isn't completely dominating streaming.

On the other hand, it's important to realize streaming services aren't mutually exclusive, says Motley Fool. Maybe a rising tide could lift all boats? Experts expect total subscriptions to climb to 650 million by 2021. Even with Disney's ambitious goal of reaching 60 million to 90 million subscribers for by 2024 is hit, there's probably plenty of room for Netflix to keep growing as well.

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Meanwhile, one of the bellwethers of investing in the cloud, First Trust Cloud Computing Electronically Funds Transfer --  SKYY -- continues to push its 52-week high. It ended the week with a $59.40 Market Price, and nearly 2.224 billion dollars in Net Assets. Daily Volume is right around 197,000 shares.

A quick rundown of its top holdings includes Zynga, VMware, Netflix, Teradata, Facebook, Cisco, NetApp, Equinix, Alphabet and Oracle. In other words, the fund targets companies that have a cloud computing-connected primary business. But what sub sectors might that include?

Cloud basically includes:

1.) Software-as-a-Service (SaaS): Companies that are involved in licensing and delivery of software over the internet on a subscription basis which is sometimes called "on-demand software".

2.) Platform-as-a-Service (PaaS): Companies that are involved in providing a platform for creating software applications which are delivered over the internet.

3.) Infrastructure-as-a-Service (IaaS): Companies that are involved in providing virtualized computing resources over the internet. The services include shared resources like shared storage and shared servers.

4.) Data center real estate investment trusts: Companies that are involved in owning and managing facilities that customers use to safely store data and offer a range of products and services to help keep servers and data safe, including providing uninterruptable power supplies, air-cooled chillers and physical security.

5.) Cloud and edge computing infrastructure and hardware: Companies involved in manufacturing or distributing hardware components like chips that are built into servers, specialized network switches and routers etc. used in cloud and edge computing activities.

Investors are betting that Cloud will continue to support the development of technologies.  And although 90% of companies are already in the cloud today, there are indications that the trend is in its early stages, as the majority of today's IT environment is still non-cloud.

In other news related to Cloud, the India Data Center Market size is projected to reach 1.5 billion dollars by 2022, growing at a Compound Annual Growth Rate of 11.4 percent.

The market growth is driven by deeper internet penetration, increased digital data traffic, the proliferation of public cloud services, and higher expected growth for Internet of Things, say experts.

"The captive model of data center is being overtaken by colocation model at a significant rate" Money Control dot com said in a recent blurb. "It is expected that consolidation of data centers will cannibalize the captive data center market, and colocation market will grow exponentially keeping in view that the outsourcing of data centers will help reduce the operating cost significantly for the clients."

By 2022, the outsourced model of data centers will make almost equal market share. The captive model, however, will still hold a majority of share, due to strict government regulations for various industry verticals making them to spend on captive data centers to localize their data processing.

Mumbai is the prime focus of data center developers in India with more than 20 percent of market share, followed by Bengaluru. All government-owned companies in every industry vertical have their data centers located in Mumbai and Bengaluru.

Cloud Capital is produced by w3 Media, and sponsored by RestonLogic, cloud wizards leveraging over 10 years experience helping companies automate, transform and build highly-secure and stable systems. Click over to https://twitter.com/restonlogic to catch up with every bit of Hot News from the Cloud.

Disclaimer: The blurbs highlighted on Cloud Capital are available for information purposes only, and don't necessarily reflect opinions of our editors.
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