NETFLIX WORTH MORE THAN DISNEY DUE TO GLOBAL QUARANTINE
The devastation wrought by the coronavirus pandemic hasn’t affected all industries equally. As luxury shopping struggles, grocery stores
and streaming services are well-positioned to not only stay afloat, but overachieve; in particular, Netflix is faring especially well, as outlined by Forbes.
By midday on April 16, Netflix’s stock climbed 5%, hitting a record high of approximately $427 USD per share. Thanks to the self-isolation period resulting from the near-global quarantine, viewership and new subscriptions have spiked, analysts report. Netflix is now worth $194 billion USD on paper, with a $50 billion USD market bump from 2020 alone. This positions it just above Disney, now situated at approximately $184 billion USD, down from $258 billion USD at the end of 2019.
Though Disney+ seems like an equal match to Netflix, the streaming service is only one branch of the Disney empire, which is dependent on tourism, merchandise and film productions to turn a profit. Meanwhile, Netflix is also implementing a production delay during the pandemic, but its breadth of backlogged programming means that it has plenty of new TV shows and movies to roll out even during a standstill.
The delay also allows the company to stockpile revenue, since it’s not being used for content creation — however, over $100 million USD has been pledged to support employees affected by the production standstill.
Bolstering its lead over the House of Mouse, Netflix has plenty of high-profile entertainment to premiere in April, including a Tiger King follow-up filmed via webcam and Chicago Bulls documentary The Last Dance.
