Investment firms specializing in entertainment stocks are bullish that Netflix and Disney will continue to reign atop the streaming landscape. Disney is a more diversified company with a variety of entertainment properties, which include theme parks and cruise lines together with traditional studio production and distribution as well as direct-to-consumer online streaming. Netflix represents a “pure play” of new content connected to the world’s largest streaming platform.
Disney grew faster than Netflix during the quarter, adding 9 million new subscribers to Disney+ compared with only 1 million new signups for Netflix. Analysts project that Disney+ will continue to eat away at Netflix’s lead of 90 million on total subscribers, knocking off an estimated 20 million from that deficit by the end of 2021. NBC Universal rival service Peacock added 12 million new subscribers in Q2, driven by the popularity of its broadcast of the Tokyo Olympics.
See also: Disney wins this round: Here’s where the streaming giants stand at the end of earnings season (CNBC) and Drive-in theaters fueled Hollywood’s box office last year. They could be here to stay (CNN)