In 2022, The Walt Disney Company’s total paid subscriber base was larger than Netlfix, with over 235 million paid members, compared with Netflix’s over 230 million members. However, Disney’s offering is fragmented among Disney+, ESPN+, and Hulu, compared with Netflix, which has a single offering.
Elements
Disney
Netflix
Similarities
Differences
Competitive Advantage
Customer Segments
Families, children, adults, Disney enthusiasts
Adults, families, entertainment enthusiasts
Both target families, adults, and entertainment enthusiasts. Disney has a strong presence among children.
Disney has a prominent presence among children through its animation and family-friendly content. Netflix caters to a broad audience, with a focus on adults.
Original content, vast library, binge-watching culture
Both offer a diverse range of content. Disney relies on its strong brand, nostalgia, and popular franchises. Netflix emphasizes original content and binge-watching culture.
Disney leverages established franchises and nostalgia. Netflix focuses on producing original content and promoting binge-watching habits.
Established Franchises and Nostalgia (Disney), Original Content (Netflix).
Channels
Theme parks, media networks, streaming service
Streaming service, partnerships
Both utilize streaming services. Disney has theme parks and media networks. Netflix primarily relies on its streaming platform and partnerships.
Disney’s channels include theme parks and media networks. Netflix is primarily a streaming service but collaborates with various partners.
Diverse Channels (Disney), Streaming and Partnerships (Netflix).
Customer Relationships
Brand loyalty, theme park experiences
Subscription-based, user-centric approach
Both foster brand loyalty. Disney offers theme park experiences. Netflix focuses on subscription-based relationships and a user-centric approach.
Disney creates strong brand loyalty and memorable theme park experiences. Netflix builds customer relationships through subscription-based models and personalized content.
Brand Loyalty and Theme Park Experiences (Disney), User-Centric Approach (Netflix).
Key Activities
Content creation, theme park operations
Content creation, digital platform maintenance
Both engage in content creation. Disney operates theme parks. Netflix focuses on creating and maintaining its digital platform.
Disney’s key activities include content creation and theme park operations. Netflix focuses primarily on digital platform management and content production.
Content Creation (Both), Theme Park Operations (Disney), Digital Platform (Netflix).
Key Resources
Intellectual property, content libraries
Original content, digital infrastructure
Both rely on intellectual property and content libraries. Disney’s strengths include IP ownership. Netflix prioritizes original content and digital infrastructure.
Disney leverages its extensive intellectual property and content libraries. Netflix’s key resources are original content production capabilities and robust digital infrastructure.
Intellectual Property and Content Libraries (Both), Original Content (Netflix).
Key Partnerships
Film studios, merchandise manufacturers
Content producers, distribution partners
Both collaborate with film studios and content producers. Disney partners with merchandise manufacturers. Netflix works with distribution partners.
Disney’s partnerships extend to merchandise manufacturers, enhancing its merchandise business. Netflix’s collaborations primarily involve content distribution partnerships.
Merchandise Manufacturers (Disney), Content Distribution (Netflix).
Revenue Streams
Film, merchandise, theme parks, streaming
Subscription-based streaming
Both generate revenue from various sources, including film, merchandise, theme parks, and streaming services. Netflix’s primary revenue source is subscription-based streaming.
Disney diversifies its revenue streams through films, merchandise, theme parks, and its streaming service. Netflix relies heavily on subscription-based streaming revenue.
Diverse Revenue Streams (Disney), Streaming Dominance (Netflix).
Cost Structure
Content production, theme park maintenance
Content production, digital platform maintenance
Both incur costs related to content production. Disney has theme park maintenance expenses. Netflix’s costs are associated with content production and digital platform upkeep.
Disney’s cost structure includes content production and theme park maintenance. Netflix focuses on content production and digital platform maintenance costs.
Theme Park Maintenance (Disney), Digital Platform (Netflix).
In 2022 Disney passed Netflix
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+.
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. Starting in 2013, Netflix started to develop its own content under the Netflix Originals brand, which today represents the most important strategic asset for the company that, in 2022, counted almost 223 million paying members worldwide.
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 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.
Netflix is among the most popular streaming platforms, with a subscription-based businessmodel. 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 businessmodel.
Netflix’s largest individual shareholder is Reed Hastings, co-founder, and CEO of the company, with a 1.7% stake, valued at over $1.8 billion in 2022. Netflix runs a subscription-based business model that generated $29.6 billion in revenues, and it had over 221 million global members in 2021. Netflix’s business model runs only premium content on its platform, driven by its Netflix Originals shows. Netflix is also building an ad-supported version.
Netflix generated over $31.6 billion in revenue in 2022, compared to $29.7 billion in 2021. Netflix was profitable in 2022, as it generated almost $4.5 billion in profits.
Netflix had over 74 million paying members in US & Canada, over 76 million in the EMEA region, almost 42 million in the LATAM region, and 38 million in the APAC region.
The most significant geography in terms of average monthly revenue per subscriber in 2022 was US & Canada, with $15.8, compared to $10.99 in the EMEA region and $8.50 in APAC and LATAM.
In 2022, The Walt Disney Company’s total paid subscriber base was larger than Netlfix, with over 235 million paid members, compared with Netflix’s over 230 million members. However, Disney’s offering is fragmented among Disney+, ESPN+, and Hulu, compared with Netflix, which has a single offering.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
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