As of this writing Netflix is worth 163.79B VS Disney’s 152.20B. Netflix and Disney’s total Market caps are fighting for first place in the media market.
This left old guard media analysts in shock. How could Netflix be worth more than Disney??? They don’t have Star Wars, they don’t have the MCU, they don’t have theme parks. What Netflix does have however, is a generation of millennials who have cut the cord, and only use that service to get all their content. To them Netflix is the center of their entertainment universe. They don’t care about the upfronts, TV schedules, advertisements, or popular franchises and cop dramas on network television. If Netflix tells them a new show is available they will watch it. The concepts of seasons, ratings, and even episodes are alien to them. They also don’t seem to care, if Netflix rises it’s subscription price every year.
It just got that much harder for a traditional media company to buy Netflix, as most Media companies are trying to copy Netflix outright. If one of them fails, perhaps someone large like Apple might go for Netflix, but for now they are trying their own streaming services. Even Disney has seen the light at the end of the tunnel. Their new streaming service due out next year is already billed as a Netflix killer, but what Disney has to do is convince these millennials that the Disney Streamer, is better than Netflix, and that’s going to be tough. Most current Netflix subscribers won’t even leave the service if they doubled their price to $20 a month. That’s customer loyalty you can’t buy away.
Disney gambled when they bought Star Wars and Marvel, but some analysts are saying that they are not taking enough risks even with those properties. As Netflix churns out new content seemingly every single day, Disney seems to be rehashing old brands. And how long can Tony Stark and company continue to fill the pockets of Mouse House before people get sick of them? With it’s growing talent list traditional media companies should be really worried about Netflix.