- Netflix stock crashed after it reported that for the first time in over a decade, it had lost subscribers.
- Netflix's management announced that it will be adding an ad-supported tier sooner rather than later. This will attract more subscribers and advertising dollars to the leading streaming platform.
- Disney+ added 7.9 million subscribers last quarter, but the majority came from its Disney+ Hotstar bundle, which has an average revenue per user of $0.76.
- Disney's management also reiterated that it would reach its goal by 2024 of having between 230 million and 260 million Disney+ subscribers. By then I predict that it will again be paying a dividend.
- With high inflation, users might consider cutting nonessential costs such as streaming services. This is why Disney might be better a better choice than Netflix currently since you get exposed to much more than Disney+.
- That said, Netflix's move toward advertising could accelerate its growth and fund future projects.
For the full insights, do watch the video, consider subscribing, and click the special offer link below.
*Stock prices used were the closing prices of May 18, 2022. The video was published on May 19, 2022.