For the first time, Netflix beats Disney as the most profitable entertainment company

When Netflix first became a public company back in 2002, it was simply a mail-order DVD service. Since then – thanks mostly to pioneering the streaming media industry – its stock has surged 33,000 percent. Today, for the first time, Netflix became the world’s most valuable entertainment company (via The New York Post), knocking Disney down to second.

In 2018 alone, Netflix’s stock has surged 80 percent, while Disney’s has dropped by about 5 percent over the past year. As of now, Netflix is valued at about $153 billion – $1 billion more than Disney’s $152 billion.

These are impressive stats, considering Disney owns some of the world’s most valuable entertainment properties, including Pixar Animation, the Marvel Cinematic Universe, and Star Wars. It’s also a little bit ironic considering that today is the general release date for the newest Star Wars movie: Solo: A Star Wars Story.

While those properties allow Disney to essentially print money, they are no match for what Netflix can do with its grip on people’s homes. Whether to binge watch the award-winning original programming Netflix creates, or plopping their kids down to watch a steady stream of kids shows, people consider Netflix an essential aspect of their lives.

Disney can’t compete with that, at least not yet. In the future, Disney will release its own streaming media platform to compete directly with Netflix, which will likely turn the tide. However, with Netflix, Hulu, Amazon Prime Video, HBO Go, and other streaming services already fighting for market share, it may be too late for Disney to stake its claim.

After all, people can only afford to pay for so many streaming services. With Netflix the de facto essential streaming platform for 125 million people around the world, it’ll take quite a lot to get them to spend their $7.99 per month somewhere else.

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