2020 was a great year for entertainment, with in-house entertainment consumption on the rise. The shutdown caused by the pandemic caused current consumer video stream trends to evolve quicker in a few months than they’ve had in recent years.

At the same time, entertainment businesses that offered fun outside of people’s homes suffered a massive blow.

We’re past the first anniversary of the pandemic shutdown and this new consumer trend is not going away any time soon.

Here are two entertainment stocks you should look out for during 2021, given that they have some of the biggest opportunities for growth.


Roku is a growing company that is supplanting broadcast TV. While it may not be the biggest fish at the pond, it is in one of the best positions to grow using the current entertainment consumption trends.

Roku is the top video streaming platform in the U.S. It is currently being used by 38% of smart TVs in the country. The company also sells other streaming products and accessories, but its main income is made from advertising.

The platform’s revenue increased 71% last year. This is an important increase as viewers are switching to streaming networks, leaving traditional TV channels as a relic of a bygone age, meaning that advertisers will start looking for greener pastures, which Roku’s land is full of.

While some may predict that it will have a loss during 2021’s first quarter, the company is making moved to expand. It has acquired the rights to the long-airing series This Old House as well as the mobile streaming platform Quibi.

Roku is reaping rewards from the shift to streaming consumption at home. Will this trend continue when the pandemic finally comes to a close? Probably not. TV is part of home entertainment, and it will always be. Roku’s services are well demanded, and that demand will only keep growing.

Walt Disney (NYSE: DIS)

Disney is the largest player in the entertainment industry. This company benefits from all types of entertainment, raising nearly $70 billion dollars in annual revenue.

The company did experience a hard blow during the pandemic, having to close its parks and recreation facilities, which is their best source of income most of the time. However, Disney+, Disney’s premium streaming service channel, succeeded due to the pandemic forcing people to stay indoors.

Disney+ has had massive success since it launched in 2019, exceeding all expectations by currently having over 100 million subscribers. If you were to include Disney’s other streaming services, Hulu and ESPN+, it would have over 150 million subscribers. This number is expected to grow into a total of 350 million by 2024. The company prioritized direct-to-consumer content channels and has over 100 projects in the works.

This managed to hold the fort for Disney, lowering the blow caused by the temporary shutdown of its parks. Direct-to-consumer sales increased 73% and net income was finally out of the red after two quarters of having losses.

This is just the beginning of Disney’s comeback, as it is also up 3% this morning.