Shares of Netflix hit a record high Wednesday, boosting the streaming giant's market value to $187.3 billion, topping Disney's $186.6 billion. Video streaming jumped 109 percent in March versus a year earlier, Nielsen reported, as millions of people are stuck at home, without live sports, to fight the COVID-19 coronavirus crisis. That has been a boon for Netflix and also newer rival Disney Plus, but Baby Yoda's parent company has seen its stock fall because Disney's other businesses — like theme parks and in-theater movies — have been crushed by the pandemic.
Disney's market value peaked at about $268 billion in November 2019, so Netflix's dominion is probably short-lived. "But unlike Disney and Roku, Netflix has no exposure at all to the advertising industry, stubbornly sticking to a subscription-only revenue model, despite pressure from some analysts in recent months to offer an ad-supported version of the service," Eric J. Savitz notes at Barron's. "With ad budgets in free fall and many media companies furloughing workers, cutting salaries, and struggling to maintain financial stability, Netflix is now reaping the rewards of its clear-cut no-ads strategy."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
-
Mary Poppins tour: 'humdinger' of a show kicks off at Bristol HippodromeThe Week Recommends Stefanie Jones and Jack Chambers are 'true triple threats' as Mary and Bert in 'timeless' production
-
Jaguar's stalled rebrandIn the spotlight Critics and car lovers are baffled by the luxury car company's 'complete reset'
-
What the chancellor's pension megafund plans mean for your moneyRachel Reeves wants pension schemes to merge and back UK infrastructure – but is it putting your money at risk?
-
Boeing machinists approve contract, end strikeSpeed Read The company's largest union approved the new contract offer, ending a seven-week strike
-
US economy still strong in final preelection reportSpeed Read It grew at a solid 2.8% annual rate from July through September
-
Boeing machinists reject deal, continue strikeSpeed Read The rejection came the same day Boeing reported a $6.2 billion quarterly loss
-
Ports reopen after dockworkers halt strikeSpeed Read The 36 ports that closed this week, from Maine to Texas, will start reopening today
-
Empty-nest boomers aren't selling their big homesSpeed Read Most Americans 60 and older do not intend to move, according to a recent survey
-
Brazil accuses Musk of 'disinformation campaign'Speed Read A Brazilian Supreme Court judge has opened an inquiry into Elon Musk and X
-
Disney board fends off Peltz infiltration bidSpeed Read Disney CEO Bob Iger has defeated activist investor Nelson Peltz in a contentious proxy battle
-
Disney and DeSantis reach detenteSpeed Read The Florida governor and Disney settle a yearslong litigation over control of the tourism district
