For the first time in entertainment history, the big red N surpasses Mickey and friends as Netflix is now worth more than Disney. Disney has been one of the biggest names in the entertainment industry for decades. The entertainment titan started out as an animation studio releasing flicks like Snow White and the Seven Dwarves and shorts like Steamboat Willie. As animation technology advanced and Disney was able to create household characters that would remain in fans' hearts for the decades to come, it was able to create its own network Disney channel, theme parks across the world, cruise lines and its own streaming service Disney+.
Netflix entered the entertainment industry much later. Initially, the rental service's biggest competition was Blockbuster. Netflix's initial services allowed users to order movies for rent that were delivered by mail. The convenience of Netflix ultimately caused Blockbuster stores to close their doors in 2010. This came a few years after Netflix launched its streaming platform in 2007. The streaming service allowed viewers to access a vast library of movies and TV shows from their homes for a monthly fee. Netflix stepped up its game releasing its own original content like House of Cards and Orange is the New Black that continue to make it a top contender in the entertainment industry.
According to Variety, Netflix has passed another significant benchmark surpassing its own stock price record and even Disney's current stock price. Over the past three days, Netflix's stock increased 3.2 percent, to $426.75 per share bringing its current market capitalization of $187.3 billion. Meanwhile, over the past week, Disney's stock has decreased by 2.5 percent to $186.6 billion, just $0.7 billion less than Netflix's. Netflix's current share price is significantly higher than its prior record, which was $418.97 on July 9, 2018.
While Netflix is the king of streaming platforms, it normally could never compete with entertainment giant Disney. However, the coronavirus outbreak has taken everything from Disney except its own streaming platform. Disney's net worth is hurting as parks remain closed until further notice, movie theater release dates for its upcoming feature films have been postponed and cruises will likely be shut down for even longer. Now one of the few ways Disney has to compete with its entertainment rivals is Disney+. While Disney+ is one of the more successful streaming services out there and continues to give Netflix a run for its money, Disney+ is fairly new at only a few months old and has a much more limited selection than Netflix.
The entertainment industry never thought it would see the day that Disney would come in second place. However, it's not too surprising during these times when all people have to do is sit at home and watch TV. The Disney+ catalogue can grow repetitive while Netflix is on a roll with its new reality TV series like Love is Blind and bizarre documentary series like the infamous Tiger King in addition to its long list of original movies and TV series. While Disney is hurting, it is in no danger of going bankrupt and will likely come back stronger than ever once it can reopen the doors of its theme parks and release its movies in theaters.
Source: Variety