While some businesses such as Disney are struggling right now because they can’t provide in-person entertainment through their theme parks, other companies that are able to reach these “captive” stay-at-home audiences are thriving.
And although we can’t be entirely sure this has anything remotely to do with Tiger King, everyone and their uncle seems to be watching Netflix these days.
Netflix is thriving so much, in fact, that Forbes is reporting that Netflix is now worth more than the Walt Disney Company. After reports that Disney+ had reached a major milestone of more than 50 million subscribers, Disney’s stock surged on April 9th, but yesterday Netflix’s stock closed at a record price of almost $427 per share.
Netflix as a company is now worth $194 billion — that’s a $50 billion increase from the previous year. Disney, which was estimated to be worth $258 billion at the end of 2019 is now being valued at below $184 billion after taking a big hit due to the current health crisis. Not even Baby Yoda could put a dent in this devastating loss of revenue.
While Disney+ seems to be doing well right now, it’s only a tiny trickle when you compare it to how much money they AREN’T earning through their theme parks, entertainment, merchandise, and cruise ships.
Coupled with the fact that Disney+ only launched last November sources like CNBC have shared that it could take years for Disney+ to really turn a profit. Disney+ also hasn’t completed as many projects as Netflix which had lots of new content consistently in its pipeline. And even though Netflix has also had to delay its filming, these postponements don’t seem to be disrupting the company at this time.
We’ll continue to follow this story and provide you with additional information when it becomes available.
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What do you think of Netflix becoming more valuable than Disney? Let us know your thoughts in the comments below.