4 ms·

What's more shocking to me is that Netflix is worth more than Disney. Just look at the list of Disney subsidiaries[1], then look at how bad the average Netflix

What's more shocking to me is that Netflix is worth more than Disney. Just look at the list of Disney subsidiaries[1], then look at how bad the average Netflix original movie is and then tell me if the market caps makes any sense at all. [1]https://en.wikipedia.org/wiki/List_of_assets_owned_by_Disney https://en.wikipedia.org/wiki/List_of_assets_owned_by_Disney

bytematic 8y ago
I love netflix but have never seen one of their original movies, happy to see them made but that isn't the point of Netflix
- butterfi 8y ago
  I'm puzzled by your comment about 'the point of Netflix.' It seems myopic to think that they should limit themselves to simply serving up others peoples content. I would imaging the point of Netflix is to be the most success company they can be.
  - fetus8 8y ago
    It seems incredibly short sighted too! Buy the rights to streaming a show that someone else made could, and probably tends to be far more expensive than producing your own in house content... Plus I do genuinely believe that Netflix has been successful in creating new interesting, quality content and partnering with a variety filmmakers. Some of their docu-series have rivaled HBO's Documentaries!
- eckmLJE 8y ago
  I believe that creating original content that attracts subscribers (the HBO model) is what Netflix is trying to make one of the main points of Netflix.
- monocasa 8y ago
  > but that isn't the point of Netflix It'll increasingly be as the other content producers feel threatened by Netflix and balkanize their content into their own services. Netflix has to convert to more of an HBO model where they have their own quality originals that bring eyeballs, and they're already on their way towards that.
  - Finnucane 8y ago
    This, really--Netflix's big push into original content came after their deal with Starz ended and they started to have a harder time licensing movies and shows from studios and other networks, as those entities were trying to build their own services. The 'point' of Netflix is 'have enough available stuff people want to keep paying $12 a month for'.
empath75 8y ago
I think Netflix is overvalued, but I have a hard time seeing Disney as a stock that grows significantly from here.
dawnerd 8y ago
It's absolutely silly. One Disney movie release alone puts Netflix to shame. Unless Netflix can open theme parks and push massive blockbusters to theaters every three weeks I just don't see how they'll actually be worth more.
arbitragy 8y ago
Similar to my comment below, but Netflix has an EV of 155b relative to ~175b for Disney. So Netflix is smaller but the gap has narrowed considerably. I'd recommend shorting Netflix if you believe it is significantly overvalued.
stcredzero 8y ago
What's more shocking to me is that Netflix is worth more than Disney. What is the chance that Disney can execute implementing its own Netflix? What is Disney's batting average on projects like that?
- maxsilver 8y ago
  > What is the chance that Disney can execute implementing its own Netflix? Disney effectively owns Hulu, which was already the #2 or #3 competitor to Netflix in the US for many years. Disney may not need to execute implementing anything, since they already own a fully-operational and fairly successful one of their own.
- niftich 8y ago
  "The Walt Disney Company to Acquire Majority Ownership of BAMTech" [1]. "The company's major clients include the NHL, HBO (for its HBO Now service), the PGA Tour, Riot Games, WatchESPN, PlayStation Vue, WWE Network and TheBlaze." [2] "Marvel, Star Wars films to ditch Netflix for Disney service" [3] I'd say they have both the content, technical expertise, and tenacity and perseverance to pull it off. [1] https://www.thewaltdisneycompany.com/walt-disney-company-acquire-majority-ownership-bamtech/ https://www.thewaltdisneycompany.com/walt-disney-company-acq... [2] https://en.wikipedia.org/wiki/BAMTech https://en.wikipedia.org/wiki/BAMTech [3] https://www.cnet.com/news/marvel-and-star-wars-films-will-ditch-netflix-for-disney/ https://www.cnet.com/news/marvel-and-star-wars-films-will-di...
- scarface74 8y ago
  Disney owns BamTech the streaming company behind MLB at BAT and HBO Go. BamTech is widely believed to have the best streaming technology except for Netflix. No one has ever accused Disney of not being able to leverage its brands. They also have a good track record when it comes to acquiring other companies like Pixar, LucasFilm, and Marvel. If the deal with Fox goes through, they will have even more content to leverage.
sk1pper 8y ago
I get your point, and I agree with you overall, but it's not quite fair to compare Netflix movies to Disney movies. Netflix's wheelhouse in original content is TV series, not movies. IMO, they're second only to HBO in that space.

bytematic 8y ago

I love netflix but have never seen one of their original movies, happy to see them made but that isn't the point of Netflix

butterfi 8y ago
I'm puzzled by your comment about 'the point of Netflix.' It seems myopic to think that they should limit themselves to simply serving up others peoples content. I would imaging the point of Netflix is to be the most success company they can be.
- fetus8 8y ago
  It seems incredibly short sighted too! Buy the rights to streaming a show that someone else made could, and probably tends to be far more expensive than producing your own in house content... Plus I do genuinely believe that Netflix has been successful in creating new interesting, quality content and partnering with a variety filmmakers. Some of their docu-series have rivaled HBO's Documentaries!
eckmLJE 8y ago
I believe that creating original content that attracts subscribers (the HBO model) is what Netflix is trying to make one of the main points of Netflix.
monocasa 8y ago
> but that isn't the point of Netflix It'll increasingly be as the other content producers feel threatened by Netflix and balkanize their content into their own services. Netflix has to convert to more of an HBO model where they have their own quality originals that bring eyeballs, and they're already on their way towards that.
- Finnucane 8y ago
  This, really--Netflix's big push into original content came after their deal with Starz ended and they started to have a harder time licensing movies and shows from studios and other networks, as those entities were trying to build their own services. The 'point' of Netflix is 'have enough available stuff people want to keep paying $12 a month for'.

empath75 8y ago

I think Netflix is overvalued, but I have a hard time seeing Disney as a stock that grows significantly from here.

dawnerd 8y ago

It's absolutely silly. One Disney movie release alone puts Netflix to shame. Unless Netflix can open theme parks and push massive blockbusters to theaters every three weeks I just don't see how they'll actually be worth more.

arbitragy 8y ago

Similar to my comment below, but Netflix has an EV of 155b relative to ~175b for Disney. So Netflix is smaller but the gap has narrowed considerably. I'd recommend shorting Netflix if you believe it is significantly overvalued.

stcredzero 8y ago

What's more shocking to me is that Netflix is worth more than Disney. What is the chance that Disney can execute implementing its own Netflix? What is Disney's batting average on projects like that?

maxsilver 8y ago
> What is the chance that Disney can execute implementing its own Netflix? Disney effectively owns Hulu, which was already the #2 or #3 competitor to Netflix in the US for many years. Disney may not need to execute implementing anything, since they already own a fully-operational and fairly successful one of their own.
niftich 8y ago
"The Walt Disney Company to Acquire Majority Ownership of BAMTech" [1]. "The company's major clients include the NHL, HBO (for its HBO Now service), the PGA Tour, Riot Games, WatchESPN, PlayStation Vue, WWE Network and TheBlaze." [2] "Marvel, Star Wars films to ditch Netflix for Disney service" [3] I'd say they have both the content, technical expertise, and tenacity and perseverance to pull it off. [1] https://www.thewaltdisneycompany.com/walt-disney-company-acquire-majority-ownership-bamtech/ https://www.thewaltdisneycompany.com/walt-disney-company-acq... [2] https://en.wikipedia.org/wiki/BAMTech https://en.wikipedia.org/wiki/BAMTech [3] https://www.cnet.com/news/marvel-and-star-wars-films-will-ditch-netflix-for-disney/ https://www.cnet.com/news/marvel-and-star-wars-films-will-di...
scarface74 8y ago
Disney owns BamTech the streaming company behind MLB at BAT and HBO Go. BamTech is widely believed to have the best streaming technology except for Netflix. No one has ever accused Disney of not being able to leverage its brands. They also have a good track record when it comes to acquiring other companies like Pixar, LucasFilm, and Marvel. If the deal with Fox goes through, they will have even more content to leverage.

sk1pper 8y ago

I get your point, and I agree with you overall, but it's not quite fair to compare Netflix movies to Disney movies. Netflix's wheelhouse in original content is TV series, not movies. IMO, they're second only to HBO in that space.