Disney is an iconic American company and has been for a very long time. Their collection of movies, television shows, and amusement parks make them something that everyone in America (and many beyond our borders) knows about. However, Netflix is starting to move in on Disney in the sense that they are closing in on the market cap of this great company.
It is hard to imagine in many ways that the company that started as a struggling business of mailing DVDs through the Postal Service could now be worth nearly as much as Disney. When they first got started, Netflix had to compete with the titan of the time in movies, Blockbuster. We all now know that Netflix was able to win that war, but it was not something that was a given at the time. Far from it actually.
This past week Netflix added nearly ten billion in market cap according to CNBC. Right now Netflix is just about eight billions dollars short of the value of Disney. They are closing in fast though as you can see.
Netflix still has a lot of room to grow say many stock watchers. They are pleased with the fact that Netflix is now available in nearly two-hundred countries, but they have plenty of time to specialize in each and every one of those markets. They have really just reached the tip of the iceberg with much of their revenue still coming from the United States. The number of deals and the kind of deals struck in the United States are impressive, but they can do the same thing when they travel to other lands. It is conceivable that they could become the number one streaming service in just about every country on the planet.
Given all of these headwinds still to come, most believe it is very likely that Netflix will in fact overtake Disney in the not so distant future. If and when they do it will be a major shakeup to American business. We will have to admit that the times have changed, and that a new generation of leaders is coming forth to set up their own rules and make their own business choices. Netflix might become king of the business hill as it were. That is what we all have to look forward to if current trends continue on into the future. There is no reason to think that they won’t at this point.