How Walt Disney Co (NYSE:DIS) Can Pull Off A Netflix, Inc (NASDAQ:NFLX)

How Walt Disney Co (NYSE:DIS) Can Pull Off A Netflix, Inc (NASDAQ:NFLX)

Walt Disney Co (NYSE:DIS) is feeling the heat of rising video streaming services with declining trend in subscribers and increasing programming costs. ESPN which was once pulling in growth rates at 20% is now loosing subscribers; however Walt Disney Co (NYSE:DIS) 33% acquisition of BAMTech might provide some cushion. In spite of improved performance from studio and theme parks, ESPN’s subscriber figures are weighting in on Walt Disney Co (NYSE:DIS).

Netflix, Inc (NASDAQ:NFLX) Q2 revenue was well ahead of expectations both in terms of revenue and subscriber growth. Netflix, Inc (NASDAQ:NFLX) revenue grew over 33% and subscriber growth was over 5.2 million which was above street expectation of $2.76 billion and 3.23 million subscribers. In contract Netflix, Inc (NASDAQ:NFLX) cash flow has been negative between -$2 billion and -$2.5 billion. Revenue has grown by over 32% compared to previous quarter. Thought Netflix is a entertainment company it’s been increasingly viewed as technology company.

Walt Disney Co (NYSE:DIS) recently hit 50-day moving average but could not hold on for longer time and closed the day below. However rumours of acquisition by Verizon Communications Inc (NYSE:VZ) might bump its stock price in short term despite lower earnings. A key growth for Netflix, Inc (NASDAQ:NFLX) is Mobile and Tablet user base; this allows Netflix to engage users in more than one way. Netflix has clocked 125 million US viewer hours one its mobile platforms, which is a growth of 35% year on year.
In contrast Walt Disney Co (NYSE:DIS) saw flat revenue over the past 6 months due to its theme parks segment pulling in growth; however loss of subscribers is driving decline in net income. Analyst forest a mere increase of 1.1% in its Q3 revenue. 2017 would be third straight declining year for Walt Disney Co (NYSE:DIS).

Walt Disney Co (NYSE:DIS)
Walt Disney Co (NYSE:DIS)

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