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Netflix streaming wars spending infographic
Graphic shows Netflix and Disney+ subscribers and content spending.
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Streaming wars drive content spending

By Duncan Mil

September 18, 2024 - The company that became Netflix was founded in 1997 by Reed Hastings and Marc Randolph as a DVD rental-by-mail service. It has cemented its position as the world’s largest and most profitable subscription video-on-demand streaming service.

Initially, with less than 1,000 titles, Netflix allowed customers to rent DVDs online and have them delivered to their homes.

In 2007, Netflix introduced its streaming service, allowing customers to watch movies and TV shows instantly on their digital devices (e.g. mobile phones, laptops, and tablets).

This shift in its business model led to Netflix producing its own original content and expanding its services internationally in 2013, making its content now available in more than 190 countries.

With original series like “Stranger Things,” “The Crown,” and “Narcos,” Netflix established itself as a leader among traditional entertainment companies

The launch of Disney+ in November 2019 ignited “streaming wars.” Since then, Disney+ has spent an eye-popping $466.49 billion building family-friendly content, including classics like “The Lion King,” “Aladdin,” and “Frozen,” plus Marvel and Star Wars franchises.

Netflix estimates that in September 2024, it will have an industry-leading 280 million global paid subscribers.

Netflix closed the second quarter of 2024 with $9.6 billion in revenue and $2.15 billion in net income, resulting in a 22.4% net profit margin.

Disney+ turned its first profit in the first three months of 2024. Operating income was $47 million (compared with a loss of $587 million a year ago) on revenue of $5.64 billion.

Sources
PUBLISHED: 19/09/2024; STORY: Graphic News; PICTURES: Getty Images, Marc Randolph
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