The coronavirus pandemic has worked wonders for the streaming services. With a new service releasing every few months, with the latest being Peacock TV, competition among the streamers is hardcore at the moment.
As more and more people are binging movies and TV shows to get over their boredom, Netflix’s stock price has risen to such a point that they are now worth more than Disney.
The problem seems to lie in the fact that, although Disney+ is doing pretty well, the other facets of the company aren’t. That includes the production of major movies and series being delayed, big-budget movies being put on hold, and parks across the world shutting down.
On top of that, Disney+ is still relatively new and competing against Netflix is fairly difficult, considering the latter has been in the market for quite some time.
When the stock market closed on Wednesday, Netflix’s shares closed up 3.2% and were listed at $426.75 per share. This gives the company a market capitalisation of $187.3 billion, effectively beating Disney at $186.6 billion. Moreover, Disney saw a 2.5% decrease in its stock prices amid a wider market downturn.
Netflix had previously seen such a high closing stock price on July 9, 2018, when it was $418.97.
Although Disney’s shares have gradually been rising, they are yet to recover from the crash that they had faced in March. This was predominantly due to the decisions that they had to take due to the coronavirus outbreak.
However, Disney is also capitalising from the pandemic in the form of Disney+. Although their catalogue is probably not as extensive as that of Netflix, yet the excitement of a new service during such times is hard to ignore. Disney is best known for its film studio division, The Walt Disney Studios. They also own franchises like Marvel and Star Wars. Apart from these, they also operate 14 theme parks around the world as well as 380 retail stores.
On the other hand, Netflix is primarily a subscription-based streaming service which also produces and distributes its own content. The company makes different content for the 190 countries that it is operational in and changes content from time to time. As an idea, as of March 2020, Netflix has around 3,000 film titles available for streaming in the US. This number, however, does not include TV shows.
As of the latest statistics, Netflix has around 169 million paid subscribers worldwide. Analyst group Cowen & Co. reported that there has been an increase of 7.1 million paid subscribers in the first three months of 2020. In comparison, Disney+ just crossed 50 million subscribers, having just come out five months ago. The service is available in about 17 countries as of now.
Netflix is benefiting at the moment due to its huge catalogue of movies, acquired over a much longer period of time than Disney+. However, it’s not like the company has not faced flak due to the coronavirus. Many of its original content, including hit series such as The Witcher, have been put on hold. Production is supposed to start on all shows after some form of semblance returns to the world.