Originally published at VideoInk.
Netflix is now worth more than Comcast. The streamer blew past the cable provider in market value yesterday, signaling another milestone for the streaming industry as it continues to successfully compete with Pay-TV. Currently, the company’s market cap is around $149 billion while Comcast is sitting at $147 billion. Netflix’s next target is Disney, which leads the three companies with a market cap of $153 billion.
Netflix’s stock has gone up more than 70 percent since January. Confidence in the streamer is generated partly by its ability to create and acquire successful original content like “Stranger Things,” “Black Mirror,” “House of Cards,” “Orange is the New Black” and animated comedy “BoJack Horseman.” This growing library of original content has been key to attracting and retaining subscribers. In order to keep up with the demand, Netflix plans to spend $8 billion on original projects this year, producing a mix of approximately 700 movies and “TV” series.
Netflix’s ultimate goal is for its original content to make up at least 50 percent of its library. In September 2016, Netflix’s CFO, David Wells, said the company was “one-third to halfway” there. Netflix executives feel there is greater opportunity (and safety) in the company owning its content, rather than licensing. One of the concerns is that as more companies launch OTT services they will no longer want their content (or at least the good stuff) streaming on rival platforms. This has already been the case with Disney. The multimedia conglomerate plans to launch a Disney-branded service in 2019, when it will also remove its content from Netflix.
With Disney having rights to blockbuster hits like Marvel’s Avengers, “Star Wars,” “Coco,” and its long list of classic and current cartoons, Netflix isn’t going to be looking as attractive for some, especially those who turn to the service for its licensed content. A recent study conducted by 7Park Data suggested that it’s actually licensed titles like TV show reruns that form the core of the company’s streaming business. The study found that 80 percent of Netflix US viewing is from licensed content with 20 percent from original shows.