The world is changing and with it comes a new power shift. Thanks to the Coronavirus pandemic closing the Disney parks and movie theaters, while keeping people at home to find solace in streaming, Netflix has just surpassed Disney in market capitalization value.
More and more people are finding themselves on the couch watching Netflix as they are told to stay home. Their shares jumped to $426.75 while Disney’s are sitting at around $102. Now Netflix is estimated to be worth $187.3 billion while the Walt Disney Company is at $186.6 billion. Netflix is in a better position right now because their business model doesn’t depend on large crowds of people, like Disney’s does.
Disney is better off in other ways because the have diversified somewhat and still have streaming. Eventually their parks will re-open and films will get released, where Netflix pretty much only has streaming.
Netflix is also performing past expectations with an estimated 8.45 million subscribers in the first quarter. According to Techspot.com, that is above the initial projection of 7 million. It also helps that “Tiger King” has become somewhat of an internet phenomenon with memes and songs. I have not watched it but I know who Carol Baskin is.
Some analysts are predicting that things will likely get worse for Disney before they get better. We will keep an eye on it as it progresses, but for now Netflix has become a more valuable company than Disney.
What do you think? Comment and let us know.
Source: TechSpot.com
Pirates & Princesses (PNP) is an independent, opinionated fan-powered news blog that covers Disney and Universal Theme Parks, Themed Entertainment and related Pop Culture from a consumer's point of view. Opinions expressed by our contributors do not necessarily reflect the views of PNP, its editors, affiliates, sponsors or advertisers. PNP is an unofficial news source and has no connection to The Walt Disney Company, NBCUniversal or any other company that we may cover.
