The competition between Walt Disney (NYSE:DIS) and Netflix (NASDAQ:NFLX) may have taken it to a new level. Or, depending on the analyst, may have come to an abrupt end. The simple starting position is that the pursuer has apparently caught up with the top dog in terms of the total number.
Disney+ with its 152.1 million subscribers, Hulu with 22.8 million more and Hulu with a total of 46.2 million subscribers are a total of 221.1 million paying members. Whereas Netflix had just 220.67 million subscribers at the end of the last quarter. In fact, the answer is therefore: Yes, the pursuer now has more members than the former top dog.
Nevertheless, the considerations do not end here. After all, it’s about more than just the sheer number of members. Anyway, here are my further thoughts on Walt Disney and his new pursuer.
Walt Disney vs. Netflix: A fitting comparison?
We can only compare Walt Disney and Netflix to a limited extent. On the one hand, because we have different values or different demands. For example, if we look at their flagship services, we see 152.1 million subscribers on Disney+. Today’s top dog, when it comes to just one service, is therefore still the supposed pursuer.
But we also need to weigh other things. For example, the monetization of the respective services. Disney+ is a bit further away from Netflix, with average revenues of $4.35 per user. The management now wants to turn the price screw. Hulu, on the other hand, is comparatively more expensive at $12.92 for SVOD-Only and $87.92 for Live TV and SVOD. Unfortunately, Netflix does not show the key figures here. However, quarterly revenue of $7.97 billion compares to approximately $5 billion in direct-to-consumer revenue.
Therefore, measured by some metrics, Netflix is even bigger than Walt Disney. Just not from the point of view of the group as a whole. But: The supposed ex-top dog still owns the largest streaming service. Except that Disney+ continues to catch up.
A wider offer
The bottom line is that Walt Disney is bigger than Netflix in some ways. But only as a whole. If we look at other factors, however, we get a different picture. Which one we want to use is another question anyway.
Ultimately, the core question is which streaming stock has more potential in the future. Content is likely to be a crucial feature. As well as the question of which group orientation is more promising overall. After all, not each of these two names is a streaming company in its purest form.