Man…
That big mouse that lives in Orlando seems to be pretty bloodthirsty, doesn’t he?
Ever since, Disney (DIS) decided to jump into the video streaming market – Wall Street experts have been predicting BIG things from the company – seeing as its extensive library is a go to for parents everywhere.
However, lump on top of that the fact that Disney owns arguably the two biggest names in movie franchises – Marvel and Star Wars – and you’ve basically got lighting in a bottle.
Well, it was right…
As Disney just pulled something off that people thought would take years to accomplish – can you guess what it is?
If you guessed it had something to do with its biggest competitor – you’re probably right!
Well, no probably about it…
Disney is about it (or… pretty much has) knocked Netflix (NFLX) off the top of the video streaming mountain.
This is something that was sort of expected…
As I stated earlier – experts were predicting this would be the case – as Disney’s content library is a veritable gold mine.
However, nobody expected it to happen this fast…
But the woes of the pandemic may have quickened Disney’s ascension – as some of the original content that Netflix was planning on filming was forced to be put on hold – and it’s Netflix’s original content that keeps people subscribed to its service.
And what’s weirder is…
Nobody is really talking about it.
Which is really surprising, as you would think that Netflix losing market share in an industry it’ve dominated and pretty much created – would be a bigger deal than it seems to be.
However, according to new data from Ampere Analysis, Netflix’s subscription-streaming market share dropped BIG in the “year that shall not be named” – as its share dropped from almost a 1/3 (29%) to less than a ¼ (20%)…
That 9-point drop is BIG…
Imagine any business losing 30% of its market share – do you think it would be a problem?
It’s really weird to think that Netflix actually LOST business during a time when most of the planet was stuck at home…
You’d think all those people binge-watching these shows (mostly out of boredom) would have led to MORE business – but you’d be wrong.
Now, here comes the rub…
Netflix lost market share, yes, but it STILL added a record 37 million MORE subscriptions and banked more than $25 billion in revenue. However, the picture of what’s happening gets more clear when you take into account the entire industry.
Netflix – 20%, Amazon Prime -16%, Hulu -13%, HBO Max – 12%, Disney+ – 11%, Apple TV – 5%, Peacock – 5%, and ESPN+ – 4%…
At first glance, you’re probably wondering when I fell of my rocker – but there’s something here you may not be seeing.
Ready to have your mind blown?
Of those 8 streaming services, 3 of them…
Are owned by Disney!
Yes, the mouse owns Disney+, Hulu and ESPN+ – combining to give Disney a whopping 28% of the streaming market!
The lost market share? Well, Netflix didn’t so much as lose it to Disney as it lost it to HBO Max and NBC’s Peacock…
By the way, HBO Max is owned by AT&T (T) – one of the companies that should be one of the biggest on the planet – but can’t seem to get it all together.
So…
Walt Disney is now the new king of streaming …
And its domination of the industry is just getting started.
Can you imagine how big it will be when it finally pulls the trigger and jumps into foreign markets?
The possibilities are practically endless…
Which is why you may want to take a look at adding DIS to your portfolio if you haven’t yet.
Again, this isn’t an official GorillaTrades recommendation…
Just more of an informal chat between friends. However, if you’re wondering what kind of recommendations GT puts out – then I urge you – please consider becoming a member today.
There’s a reason we’ve become one of the biggest and most trusted online stock recommendation services in the world– and we’d love to have you on board!
If we’re not your cup of tea – no worries – but do yourself a favor and take a look at Disney…
It may be a BIG profit producer for years to come!
“If you can visualize it, if you can dream it, there’s some way to do it.” – Walt Disney
