Media companies produce and distribute films, television series, music, books, news, and radio programming. And the public is consuming more and more of their offerings every year.
The proliferation of mobile devices and digital media organizations has greatly increased screen time over the past decade, and the COVID-19 pandemic only accelerated the trend. The average American now spends more than 13 hours per day consuming or interacting with some form of media as the use of connected TV and mobile devices continues to grow.
Companies with a strong foothold in digital media keep expanding their consumer engagement, while legacy businesses that rely heavily on older media formats struggle. As a result, the industry has experienced a lot of mergers and acquisitions over the past few years.
The bulk of the industry's power is now consolidated in just a handful of companies. These include Walt Disney (DIS -0.07%), Warner Bros. Discovery (WBD -1.20%), and Paramount Skydance (PSKY -3.31%).
Companies that specialize only in media are under increasing pressure to offer direct-to-consumer (DTC) services, such as Netflix (NFLX -3.36%). Even radio producers have turned to podcasts to capitalize on the shift to on-demand media consumption.
List of top media companies in 2026
Above the noise of new media platforms, ideas, and companies, a few publicly traded media organizations deserve special consideration. Here are four top picks:
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| Paramount Skydance (NASDAQ:PSKY) | $12.3 billion | 1.79% | Media |
| Walt Disney (NYSE:DIS) | $185.2 billion | 1.20% | Entertainment |
| Netflix (NASDAQ:NFLX) | $349.4 billion | 0.00% | Entertainment |
| Warner Bros. Discovery (NASDAQ:WBD) | $68.2 billion | 0.00% | Entertainment |
1. Warner Bros. Discovery
Warner Bros. Discovery is one of the biggest pure-play television media companies in the market. It is the result of a merger between Discovery and WarnerMedia, and it has a sweeping portfolio of cable networks reaching a broad range of demographics. It's also the home of Warner Bros. studios, which creates film and television productions, DC Comics, and HBO.
NASDAQ: WBD
Key Data Points
Those properties have made it a major acquisition target, with both Netflix and Paramount Skydance vying for its assets. The board agreed to Netflix's $83 billion offer for its studio assets, HBO, and its back catalog in December 2025.
- Strong brands like HBO, HGTV, and Discovery, combined with its massive scale and content portfolio, make it competitive in the current media landscape.
- The linear TV business is losing subscribers and advertising dollars, which is made up for by growing streaming revenue and profitability.
- The company allowed its contract with the NBA to broadcast regular season and post-season games to lapse starting in 2025. That will result in a drop in advertising revenue and possibly subscribers.
2. Netflix
Netflix is the world's largest direct-to-consumer video service. It began buying first-run rights for original series in 2012 and has been profiting from its growing offerings of original series and films ever since.
NASDAQ: NFLX
Key Data Points
Its massive scale provides the company with data that it uses to inform content licensing and production decisions and improve the user experience.
- After years of burning cash on content spend, it's now producing billions in free cash flow every quarter thanks to its scale.
- It's using its excess cash to buy back shares and make strategic acquisitions. However, its proposed acquisition of Warner Bros. Discovery will require it to take on significant amounts of debt.
- It added an ad-supported tier in 2022, which has enabled it to branch out into more live programming, including sports.
- A crackdown on password sharing and its lower-priced ad-supported tier have supported continued subscriber growth over the last few years. It now counts 325 million global subscribers.
3. Walt Disney
Walt Disney is one of the biggest media companies in the world, especially after acquiring most of 21st Century Fox in 2019. It has a very strong portfolio of intellectual property, including Star Wars, Marvel, Pixar, and its many classic Disney brands.
NYSE: DIS
Key Data Points
It also owns the Disney and ESPN television brands. ESPN has long-term contracts to broadcast premium sporting events, including Monday Night Football.
- Disney is consolidating its streaming options. It's merging Hulu and Disney+ into a unified experience while offering a stand-alone ESPN streaming service that includes its linear programming and ESPN+ content.
- Disney holds an unparalleled collection of intellectual property that fuels a long runway of predictably successful content across film and television.
- Disney's parks and entertainment business offers a strong profit engine, supporting the media business.
4. Paramount Skydance
Paramount Skydance benefits from operating one of only four broadcast networks in the U.S. Its market position ensures broad distribution and large audiences.
NASDAQ: PSKY
Key Data Points
Its cable networks, which include BET, Comedy Central, MTV, Nickelodeon, and Showtime, are well diversified across audience demographics. Paramount Skydance is also the owner of its namesake film and television studios.
- The company is the result of a merger between CBS and Viacom in 2021, which then merged with Skydance in 2025.
- Its premium streaming service, Paramount+, bought exclusive rights to the UFC, starting in 2026, in an effort to compete with other streaming services offering live sports. Paramount+ also simulcasts NFL games with Paramount Skydance's CBS broadcasts.
- CBS is a leader in prime-time and late-night programming. Its television studio also offers additional content licensing opportunities.
Pros and cons of investing in media stocks
Pros:
- Content production costs are fixed, and distribution is relatively inexpensive, so the potential leverage of a hit show or film can prove extremely profitable for a company.
- Many benefit from strong competitive moats with unique intellectual property and studio assets, protecting them from competitive forces and economic downturns.
Cons:
- They can be cyclical, especially those more reliant on advertising than subscription revenue. Ad sales can plummet in an economic recession, and subscribers might cancel as well.
- Social media and other internet entertainment compete for attention in ways traditional media companies do not.
- Traditional media is highly regulated, and regulatory changes or restrictions could impede revenue and earnings growth.
What makes a good media company investment?
Several attributes qualify a media company as a good investment:
- Differentiated content: Unique intellectual property, long-term contracts with well-known personalities, and licenses to broadcast events such as sports and awards ceremonies all help to attract and retain consumers. Owning strong brands that have value and meaning for viewers is almost as important.
- Scale: The larger the media company, the more negotiating power it has with distributors and marketers. This can result in broader distribution, higher rates for affiliate fees and advertising, and access to additional marketing support. Additionally, a large operating scale creates cross-promotional opportunities among the media company's properties.
- Diversification: The best media companies are diversified across formats, distribution methods, audience demographics, and geographies.
- Technology: Since DTC services increasingly provide the bulk of today's media consumption, owning the technology to support DTC distribution at scale can significantly boost profit margins.
- Strong balance sheet: Media companies need robust cash reserves to bid on content and produce new films, television series, and other programming. Ample cash on hand also enables mergers and acquisitions of other companies. Debt should not be excessive, with the caveat that consistent cash flow -- perhaps from subscription revenue -- typically allows for greater leverage.
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How to invest in media stocks
Investing in media stocks, just like any other stock, is a simple process.
1. Open your brokerage app: Log in to your brokerage account where you handle your investments.
2. Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
3. Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
4. Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
5. Submit your order: Confirm the details and submit your buy order.
6. Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
FAQ
Media stocks FAQ
About the Author
Adam Levy has positions in Netflix and Walt Disney. The Motley Fool has positions in and recommends Netflix, Walt Disney, and Warner Bros. Discovery. The Motley Fool has a disclosure policy.
