Netflix has overtaken Disney to become the highest valued company in the field of US Media. This is a product of the substantial rise in the subscribers of Netflix and simultaneously, the issues being faced by Disney in the attainment of the Film and TV assets of the media house 21st Century Fox. One more important contributing factor is the changed preferences of the audience in how they choose to make use of media.
Since the month of January, the shares of Netflix have seen an upsurge of about 70 percent and after the rally of about 1.9 percent on Thursday, achieved the highest level till date of $351.09 for a share, providing Netflix with a market cap of $162 billion. On the other hand, the stock of Disney tumbled by 1.1 percent to reach the level of $101.74 for a share, taking market cap of Disney to $151.6 billion.
The reason for the downfall in Disney’s stock is the risk that Comcast, who is cash rich with $60 billion available in cash, will win the competition of acquiring the assets of Fox.
Contrastingly, Netflix is soaring heights due to their agreement for new shows with the production company of Michelle and Barack Obama, High Ground Productions. It has been reported that this agreement is covering the series of both scripted and unscripted kinds, feature films and several documentaries. Barack Obama stated that he is hoping to nurture and filter people who are full of talent, can motivate others, are able to boost the feeling of understanding and assist in taking the stories of people to the whole mankind. Netflix also has struck agreements with the producer of Grey’s Anatomy, Shonda Rhimes and co-creator of Glee, Ryan Murphy.
It is expected that the enmity between Netflix and Disney is going to take new heights in near future.
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