Disney recently took some hits when they had to close theme parks and cancel film releases. However, they were still doing well due to Disney+, but that seems to have changed.
After a report detailing that they were now less valuable than Netflix, some heads definitely turned. Netflix reported record numbers and closed up their stock at $400+ a share. Putting their market value at $187 Billion which is just above Disney’s $186 Billion.
May seem like an inconsequential number, but considering the stranglehold that Disney had on the market for a long time, it’s impressive. Even if it could just be a temporary replacement, it takes a lot to dethrone a king.
All hail the new King? Not so fast…
Obviously there are parameters worth mentioning. Disney took a huge hit from COVID when they had to shutdown parks and attractions. However, many expected that since they own a majority of Hulu and started Disney+ that they’d make up the difference. Disney was probably hoping the same thing, but now reality has set in.
Over the last few years Disney has been no stranger to controversy and backlash. Whether from Star Wars fans, 20th Century Fox or controversial opinions in general. Things became increasingly worrisome when Bob Iger chose to leave the media giant.
This should not distract from the fact that Disney will no doubt see a resurgence once a good amount of bans are lifted. The biggest one that hurt them was the park closures and movie delays.
When a movie like Black Widow, that cost $800 million to make, has to be delayed or released on demand, that hurts. No matter what, that’s reporting a loss of a lot of money. Meaning, a lot of things combined this year to hurt companies like Disney, while Netflix prospers.
What do you make of Netflix making big changes and seeing returns? Are you happy to see Disney served some humble pie or do you think people are overreacting for no reason? Be sure to let us know in the comments below!
