Netflix vs Disney Overview
The streaming pioneer versus the entertainment conglomerate. Netflix generates nearly all revenue from subscriptions, while Disney combines streaming with theme parks, merchandise, and theatrical releases.
| Metric | Netflix (NFLX) | Disney (DIS) |
|---|---|---|
| Sector | Streaming | Entertainment |
| Market Cap | $390B | $175B |
| Revenue | N/A | N/A |
| Net Income | $8.7B | $4.8B |
How Does Netflix Make Money?
Netflix (NFLX) operates in the Streaming sector with a market cap of $390B. For a full breakdown of Netflix’s revenue sources, see the Netflix revenue breakdown.
Netflix Revenue Breakdown
| Region | 2024 | 2023 | YoY Growth |
|---|---|---|---|
| US & Canada | $17.1B | $14.9B | +14.8% |
| EMEA | $12.3B | $10.6B | +16.0% |
| Latin America | $4.9B | $4.5B | +8.9% |
| Asia-Pacific | $4.6B | $3.9B | +17.9% |
| Total Revenue | $39.0B | $33.7B | +15.7% |
How Does Disney Make Money?
Disney (DIS) operates in the Entertainment sector with a market cap of $175B. For a full breakdown of Disney’s revenue sources, see the Disney revenue breakdown.
Disney Revenue Breakdown
| Segment | FY2024 (Sep) | FY2023 (Sep) | YoY Growth |
|---|---|---|---|
| Entertainment | $41.2B | $40.6B | +1.5% |
| Experiences (Parks) | $34.2B | $32.5B | +5.2% |
| ESPN (Sports) | $16.9B | $17.1B | -1.2% |
| Eliminations | -$1.5B | -$1.5B | — |
| Total Revenue | $91.4B | $88.9B | +2.8% |
Netflix vs Disney Profitability
Netflix: Yes, Netflix is profitable. The company reported net income of $8.7B on total revenue of $39.0B. With an operating margin of 26.7%, Netflix demonstrates solid profitability for the streaming sector.
Disney: Yes, Disney is profitable. The company reported net income of $4.8B on total revenue of $91.4B.
Key Financial Metrics Comparison
Netflix Key Metrics
- Operating Margin: 26.7% — Expanding rapidly from 21.4%. Netflix has transitioned from a growth-at-all-costs company to a profit optimization phase.
- Revenue Growth: +15.7% — Reaccelerated after the 2022 subscriber dip, driven by the password-sharing crackdown and ad tier launch.
- Content Spending: ~$17B — Netflix remains the largest content spender in entertainment. This includes originals (Squid Game, Wednesday) and licensed content.
- Free Cash Flow: $6.9B — Netflix generates significant cash as content spending stabilizes while revenue grows.
Disney Key Metrics
- Experiences Operating Margin: 25.3% — Theme parks are Disney’s highest-margin business. Parks generate premium per-capita spending through ticket price increases, Genie+ Lightning Lane, and premium dining/experiences.
- DTC Streaming Profitability: Achieved — Disney+ and Hulu combined turned profitable in late FY2024 after cumulative losses exceeding $11B since launch.
- Total Streaming Subscribers: 230M+ — Across Disney+, Hulu, and ESPN+. Second only to Netflix globally.
- Parks Per-Capita Spending: +6% — Guests are spending more per visit through premium experiences, despite flat-to-slightly-down attendance.
Which Company is a Better Investment?
Both Netflix and Disney are significant players in the Entertainment & Streaming space. Investors should consider each company’s revenue growth trajectory, profitability, competitive positioning, and exposure to secular trends before making investment decisions. Review the full Netflix revenue breakdown and Disney revenue breakdown for detailed analysis.
Disclaimer: This comparison is for informational purposes only and does not constitute investment advice.