Netflix (NASDAQ:NFLX) has been the streaming king in the back half of this decade, but challengers to its thrown are beginning to emerge.
Many are already familiar with Amazon Prime (NASDAQ:AMZN), but some of the titans of original programming are getting ready to enter the fray over the next 12 months. Netflix stock has dropped 7.7% over the past three months. The company has gone into deep debt to splurge on a substantial amount of original programming.
Disney (NYSE:DIS) is set to launch Disney Plus this week. The platform will be priced to aggressively compete with Netflix and other streamers. Some of the highlights of the launch include the entire Star Wars catalogue, all content from the Marvel Cinematic Universe, all 30 seasons of The Simpsons, animated classics that defined Disney in the previous era, and original releases like The Mandalorian and the live action Lady and the Tramp. Back in the spring, Disney outlined a subscriber target of 60 million to 90 million for Disney Plus for fiscal year 2024.
Although Netflix has bounced back and forth in recent earnings, it has demonstrated the kind of strong international growth that investors are looking for. The U.S. market has started to mature for Netflix, which explained the loss of subscribers in the prior quarter. This means its pricing power will also be limited, which could highlight its vulnerability into the next decade.
The growth story at Netflix will face its stiffest challenge due to the rise of competitors and slowing growth domestically. I’m staying away from the stock right now.
