We are definitely in the middle of the big Streaming Wars. The entertainment industry has been taken over by networks, studios, and tech companies doing their best to develop their own streaming service to capture viewer eyeballs. Leading the way are Netflix, Amazon, and Hulu, with Disney and Apple and about a million other companies on the fringe, trying to take a piece of the pie. However, by far, Netflix is the king of the streaming mountain. And as of today, they might just be the king of the entertainment mountain, in general.
Variety is reporting that based on current stock values, Netflix has surpassed the almighty Disney in total worth, and becomes the most valuable pure media company in the world. Year to date, the streaming service has seen its stock prices jump an amazing 80%. A large contributor to this growth is definitely the expansion of Netflix overseas. In the US, we tend to forget that Netflix has grown exponentially in foreign countries, while still growing (albeit slower) here.
So, when we see reports of the company throwing around $150 million for a Michael Bay/Ryan Reynolds film and how the streaming giant is going to release almost 500 new original programs over the rest of 2018, we need to remember that they have those big pocketbooks to back it up. We don’t bat an eye when Disney announces 10 new Marvel Studios films and plans to buy Fox for over $50 billion, and we probably shouldn’t be surprised that Netflix is throwing their cash around in much the same way.
Interestingly enough, earlier this week, Netflix passed Comcast in market cap, as well. That means that the streaming giant is valued at a higher number than both companies battling to buy Fox. While Netflix clearly doesn’t have their sights set on Fox, there has been speculation that the streamer is interested in purchasing a studio, as well.
Either way, we can guarantee that the streaming service will continue to do what they do (spend large amounts of money) for the foreseeable future.
