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Stock Markets March 19, 2026

MoffettNathanson: Global Reach Now the Defining Advantage in Streaming

Analyst note stresses that only scale-rich services can sustainably profit, with Netflix retaining a lead that legacy media struggles to match

By Avery Klein GOOGL DIS NFLX FOXA PSKY
MoffettNathanson: Global Reach Now the Defining Advantage in Streaming
GOOGL DIS NFLX FOXA PSKY

MoffettNathanson’s recent report argues that global scale is the primary determinant of competitive success in the streaming industry. The firm says streaming can be a viable business but only for platforms large enough to spread content and fixed costs across a broad subscriber base. As U.S. rivalry eases, companies are pivoting toward international growth, where Netflix holds a material advantage. The report also highlights accelerating streaming viewership in 2025, the growing role of sports rights, and the firm’s maintained analyst ratings and price targets for major media and technology companies.

Key Points

  • Global scale is presented as the main determinant of profitability in streaming, enabling distribution of content spending and fixed costs across a larger subscriber base - impacts Media and Technology sectors.
  • Industry usage rose 12% in 2025, while top SVOD platforms saw about 3% engagement growth; older demographics are increasingly adopting streaming - impacts Consumer Media and Advertising.
  • Sports content is a major area of investment and is expected to attract increased spending from Netflix and other platforms - impacts Sports Rights and Media Investment.

MoffettNathanson published a report on Thursday that frames global scale as the decisive competitive edge in the streaming sector. The firm’s central contention is straightforward: streaming is commercially viable, but primarily for services that reach a sufficient scale to amortize content spending and fixed costs across a large subscriber base.

In the note, the research team observes that competition within the U.S. market is calming, shifting strategic focus toward international expansion. In that global race, Netflix stands out as the incumbent with a scale advantage that traditional media companies find difficult to replicate. The report states that Netflix has achieved a level of worldwide scale that linear television never managed to realize.

MoffettNathanson points to recent industry transactions as evidence of scale-driven strategy. The report suggests the bidding activity around Warner Bros. Discovery was influenced in part by Paramount’s desire to combine Paramount+ with HBO Max as a way to better match Netflix’s footprint both domestically and overseas.

The research note also highlights Disney+ as well positioned to leverage its content catalogue and sports rights. According to the firm, Disney+ has the attributes to become the company’s digital centerpiece and is likely to benefit from relatively faster international subscriber growth.

On usage metrics, the report shows overall streaming viewership increased by 12% in 2025. However, the leading subscription video-on-demand platforms - Netflix, Amazon, and Disney - recorded more modest engagement growth of about 3%. The analysis also notes a demographic shift: older viewers are beginning to adopt streaming services at rates closer to those of younger audiences.

MoffettNathanson raises a specific point on monetization: Netflix is described as continuing to under-monetize its U.S. engagement despite delivering substantial value to subscribers. The firm reiterates that broader international scale enables streamers to distribute content investment and fixed costs over more subscribers, which in turn can produce higher streaming profitability.

Sports content receives particular attention in the report. MoffettNathanson indicates that sports represents a sizable portion of industry investment and expects Netflix and other streaming services to increase spending tied to sports rights going forward.

The note concludes with the firm’s maintained analyst ratings and price targets. MoffettNathanson kept Buy ratings on Alphabet (NASDAQ:GOOGL) with a $350 target, Disney (NYSE:DIS) with a $140 target, and Netflix (NASDAQ:NFLX) with a $115 target. The firm kept Neutral ratings on Fox (NASDAQ:FOXA) with a $63 target, Paramount Skydance (NYSE:PSKY) with a $14 target, Roku (NASDAQ:ROKU) with a $100 target, and Warner Bros. Discovery (NASDAQ:WBD) with a $31 target.

Overall, the report frames the streaming market as one where scale determines which businesses can sustainably convert content investment into profit, and it underscores why international expansion and sports rights are key strategic levers for companies competing in this increasingly global marketplace.

Risks

  • Services that lack sufficient global scale may struggle to achieve profitable streaming economics, creating consolidation pressure in the Media sector.
  • Rising investment in sports rights could increase content cost burdens and margin pressure for streaming operators if monetization does not scale accordingly - affects Media and Sports Rights markets.
  • Under-monetization of U.S. engagement, as noted for Netflix, could limit domestic revenue upside unless pricing or revenue mix changes are implemented - impacts Streaming Platform revenues.

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