disney-vs-netflix

Disney vs. Netflix

NetflixThe Walt Disney Company
Total Disney+164.2M
ESPN+24.3M
Total Hulu47.2M
Subscribers223M

For the first time since its launch, Dinsey’s total subscribers count passed Netflix’s count.

Indeed, by September 2022, Disney counted 235,7 million subscribers, whereas Netflix counted 223 million subscribers.

It’s important to highlight that Disney’s subscriber count is a combination of various offerings combining:

  • Disney+
  • ESPN+
  • Hulu

Within each of these core offerings, there are various channels. For instance, Disney+ also comprises Hotstar and Star+.

On its part, Netflix primary revenue stream is subscription. While it has now also launched an ad-supported tier.

Thus also Netflix is diversying its revenue streams, moving into advertising.

netflix-subscribers

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Disney Business Model

disney-business-model
Disney’s business model revolves around the creation of sustainable, scalable brands that are based on Disney characters and stories.

Who Owns Hulu?

who-owns-hulu
Hulu is a streaming platform that servers users in the United States with a library of content from networks such as ABC, NBC, FX, and CBS. The company was founded as a joint venture between News Corporation, NBC Universal, and Providence Equity Partners in 2007. Hulu has undergone several changes in ownership over the years, with Providence Equity Partners, Time Warner, Comcast, and AT&T involved with the company at various times. Disney became the majority shareholder in 2019 when it acquired 21st Century Fox in 2019. The other majority shareholder, Comcast, has also agreed to be acquired as early as 2024 with the company remaining a silent 33% stakeholder until its interests are sold off.

Netflix Business Model

netflix-business-model
Netflix is a subscription-based business model making money with three simple plans: basic, standard, and premium, giving access to stream series, movies, and shows. Leveraging on a streaming platform, Netflix generated over $29.6 billion in 2021, with an operating income of over $6 billion and a net income of over $5 billion. 

Binge-Watching

binge-watching
Binge-watching is the practice of watching TV series all at once. In a speech at the Edinburgh Television Festival in 2013, Kevin Spacey said: “If they want to binge then we should let them binge.” This new content format would be popularized by Netflix, launching its TV series all at once.

Coopetition

coopetition
Coopetition describes a recently modern phenomenon where organizations both compete and cooperate, which is also known as cooperative competition. A recent example is how the Netflix streaming platform has been among the major customers of Amazon AWS cloud infrastructure, while Amazon Prime has been among the competitors of the Netflix Prime content platform.

Platform Expansion Theory

netflix-market-expansion
netflix-net-profits-vs-total-assets

Netflix SWOT Analysis

netflix-swot-analysis
Netflix is among the most popular streaming platforms, with a subscription-based business model. The brand, platform, and content are strengths. The volatility of content licensing and production are weaknesses. The streaming market is a potential blue ocean. The inability to attract and retain premium members and its fixed long-term costs threaten its business model.

Is Netflix Profitable

is-netflix-profitable
Netflix is a profitable company whose net profits were $5.1 billion in 2021. Growing from $2.7 billion in 2020. The company runs a negative cash flow business model, which anticipates content development and licensing costs through the platform. Those costs get amortized over the years as subscribers stick to the platform.

Read Also: Netflix Business Model, Netflix Content Strategy, Netflix SWOT Analysis, Coopetition, Is Netflix Profitable.

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