Walt Disney Reclaims Top Media Company Spot, Toppling Netflix
Netflix has been dethroned as the ruler of the media landscape with the Walt Disney Company taking back its position as number one.
Earlier this week Netflix shares dropped 14 per cent as subscriber numbers for the streaming company were lower than expected.
Netflix added 5.2 million users in the second quarter, lower than what was forecast.
This took a hit on Netflix’s market value which dropped to US$153.8bn with Walt Disney edging past at US$166.8bn.
Netflix’s market value recovered climbing to US$163.03bn with Walt Disney still holding onto pole position with a value of $164.11bn.
Currently Netflix is at US$379.48, down 5.24 per cent and the Walt Disney Company is at US$110.30 up 0.09 per cent.
The streaming giant has been enjoying success on the NYSE as investors believed the company would continue to grow its subscriber base with the recent figures debunking that theory.
Reed Hastings, chairman and CEO of Netflix says the quarter was ‘strong not stellar’, he noted increased competition from YouTube, HBO, Disney, Amazon and Apple, as well as foreign currency fluctuations as the streaming giants accelerates its international business.
Another reason for the poor quarter includes lack of new content becoming viral like Stranger Things or House of Cards.
Earlier this year Netflix claimed it was adding 700 new shows and movies to the platform throughout the year.