The new streaming platform of choice: Netflix or Disney?

Streaming giant put to its paces by Mickey Mouse and co

As fund managers, we must stress to clients the importance of buying excellent quality companies, at appropriate valuations, in order to avoid the frustration of holding an expensive company incapable of meeting the expectations already baked into its share price.

To illustrate the point, we have compared two (very different) giants in the entertainment industry: Netflix and Disney.  Head-to-head Netflix, the disruptor with its online streaming platform giving subscribers unlimited access to its growing book of licensed and original content in return for a fixed monthly fee, versus the incumbent Disney, with its vast array of blockbuster franchises, box office hits, cable network studios and programming, theme parks, cruises and merchandising. At the time of writing, Netflix stock per share had just pushed through $300 and was trading on a fo...