For a moment, Netflix became the most valuable media company in the world. On Thursday 24th May 24, its share value rose 2%, with its business value reaching $153 billion (£114billion), overtaking Disney’s $151.8 billion (£114 billion).
Netflix shares shortly fell back and the company finished the day up 1.3%. But despite this, the news shows a huge shift in the media landscape.
- Disney promises new streaming service will be “substantially” cheaper than Netflix as it reveals Star Wars and Marvel TV series plans
- The BBC, ITV and Channel 4 are in talks to create a new streaming service – but how would it work? And can it still compete with Netflix and co?
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Netflix, a company that was founded in 1997 as a DVD rental service, had one million subscribers when it hit the stock market in 2002. Now the platform boasts 125 million streaming memberships, with 7.4 million users joining in 2018’s first quarter alone.
The company’s market value has doubled in the past 12 months after Netflix pledged to funnel more money into its original programming, with the service planning to have released a total of 1,000 original shows by the end of this year.
Netflix’s value had also climbed 4% after the news the Obamas would be making programming for the platform.
However, Disney is due to become a direct competitor to Netflix when it launches its to-be-titled serving service next year. The house of mouse will hope to see their value rise with their planned Star Wars and Marvel TV shows.