Thread by @GabbbarSingh

Why Netflix should worry about Disney's foray into streaming content - in just one para

Netflix current M-cap at $165 billion, a business built on leasing someone else' content. Now all those creators are entering streaming and pulling their content off Nflix.
'The Office' is the most watched show on Netflix, owned by NBC universal. It will be gone nxt year.

Netflix knows this, so it's investing billions in creating original content, but content creator studios & production houses aren't worth $165 billion.

Walt Disney has a P/E ratio of ~19
Netflix's P/E ratio? 143.

When it comes to India, Netflix is still prohibited expensive, catering to a niche market of English speakers. Hotstar with a Subscription + Ad revenue model is much smarter. Coz of its Ad revenues it can subsidize the subscription cost, and appear a much cheaper service.

Simply put, Netflix is switching to a content creation model from a content leasing model. Former is a low Net margin business as compared to latter.
Tech is a commodity. Saving grace is the 100m+ paying subscriber base. Hope it holds on to them. Life won't be rosy though. <end>

PS: Disney owns Hotstar now :)