vendredi 12 août 2022

The superiority of Disney against Netflix

This week, Disney's results were out and, for the first time, there were more people using Disney + than people using Netflix. More than that, Disney + is in growth mode while Netflix is in regression mode. 

I love Netflix and I think that it's a great business. However, I think that Disney's model is superior to Netflix. I'm not talking about content but about diversification.

When you buy Netflix, you buy streaming services.

When you buy Disney, you buy a bunch of entertainment businesses (Disney parks, Disney +, ESPN, ABC, National Geographic and much more). Thus, when a sector is having a harder time, there's something else to compensate. And most of these businesses have a link together. 

And Disney ownes many big franchises like Star Wars or Lion King or hundreds of others. Every new Star War movie reaches one billion dollars at the box office. Who can beat that? 

That's why, in the entertainment field, Disney is the best and should remain the best. Maybe not for performance (because who knows on which platform will be the next blockbuster) but surely for safety. 

Finally, let's remind that, while growth is currently impressive for Disney, their EPS are still way below pre-pandemics levels.  

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