Can Disney Outspend Netflix on Streaming Content?
Streaming is the new battleground in the entertainment industry, and Disney (NYSE: DIS) has emerged as one of the top global players in the space. Just one year after it launched Disney+, the new service has already attracted nearly half as many subscribers as Netflix (NASDAQ: NFLX), while spending only a fraction as much on fresh content.
But Disney's stepping on the gas with investments in several new original series based on its most popular brands, a signal that the House of Mouse is quickly shifting to a streaming-first business strategy.
Management's latest spending targets for Disney+ called for $2 billion in content amortization expense in its fiscal 2020 (which ended Oct. 3), with a gradual increase to the "mid-$4 billion range" by fiscal 2024. By comparison, Netflix laid out $13.9 billion on additions to its content library in 2019.
Source Fool.com
