Netflix Is Now the World's Most Valuable Media Company

Galtero Lara
May 26, 2018

Netflix, despite being more valuable than Disney earlier on Thursday, ended up closing out just behind the company.

Netflix, the streaming service giant that is continually producing such original sci-fi content as Altered Carbon, Black Mirror, Stranger Things, Bright, Lost in Space, Dark and The Rain, saw its stock reach a record high of $351.09 per share as of 12:15 p.m. EDT on Thursday, giving the company a market cap of almost $162 billion.

The advance underscores the high confidence investors have in the future of the world's largest paid online video service.

Still, Netflix's revenue remains well below that of the media titans. Its sales totaled $84.5 billion previous year.

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Comcast and other cable providers have faced growing competition from streaming services like Netflix, which are attracting more customers by adding original programming.

In the first five months of the year, Netflix has debuted the second season of one of its Marvel heroes (Jessica Jones), it's Chief Content Officer has stated that the service plans to house up to 1,000 original titles by the end of the year, 13 Reasons Why takes the top spot in the streaming of digital original programs, and just a few days ago, the Obamas signed a multi-year deal to produce content for the streaming service. In comparison, Comcast's market cap was valued at $147.15 billion, which sees its online competitor besting their more traditional opponent by over $5 billion. Subscribers totaled 125 million as of March 31.

The Los Gatos, California-based company's shares rose to roughly $354 per share at their peak, pushing Netflix toward a market capitalization of $153 billion. Netflix will lay out about $8 billion for movies and shows in 2018, and forecasts $3 billion to $4 billion in negative free cash flow. In conjunction with Monday's announcement, Netflix's stock was up nearly 4 percent.

While much of the attention was on Disney getting access to Marvel characters it now doesn't have the screen rights too, for The Mouse, the bigger fish is Fox's share of Hulu, and Sky Television. Disney posted sales of $55.1 billion and net income of $8.9 billion for its most recent fiscal year, which ended September 30, 2017. Comcast has begun selling the Netflix service as part of its cable packages.

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