Netflix vs Disney+: Who will emerge as the champion of streaming?

Netflix may have created a revolution with the accessible streaming of movies and TV shows. They may even have perfected it over the years. But like all media corporations, film studios, comicbook labels, and even theme park owners in the US, the time has come for them also to face the ‘Big Mouse’.

The Walt Disney Company has doubled down on its streaming service. It gobbled up Hulu, it divested Hotstar, and now has its crosshairs set on its only true rival—Netflix.

Now, let’s analyse some financial figures. Netflix expects to earn a net profit of $2.98 billion on a revenue of $11.08 billion for the third quarter of 2025 (September quarter).

While this forecast is marginally higher than the $2.36 billion it earned on a Q3 revenue of $9.83 billion a year ago, it falls short of the impressive $3.13 billion in net income on a $11.08 billion revenue it reported last quarter (Q2 2025 that ended in June).

In Netflix’s own words, they stacked their cards on the success of the following shows this quarter. Wednesday Season 2, so far, was a bust. The Stranger Things finale has a lot of buzz around it. The Canelo-Crawford live boxing match is expected to bring in a lot of eyeballs. Guillermo del Toro’s Frankenstein could be a blockbuster hit. And Adam Sandler’s Happy Gilmore 2 did not make the splash we thought it would. Things aren’t going well for Netflix.

In the same quarter (Q2 2025 for Netflix = Q3 FY2025 for Disney), The Walt Disney Company earned $23.7 billion in revenue, of which $10.7 billion came from entertainment. However, it only earned $1.02 billion in operating profit for the quarter ending June 2025—down 15 per cent year-on-year.

Netflix ended the June quarter with a gross debt of $14.5 billion and cash and cash equivalents of $8.2 billion. In contrast, the ‘Big Mouse’ corporation ended the same period with a total debt of $42.26 billion and cash and cash equivalents (and restricted cash) of $5.5 billion.

In fact, over the course of the past five years, Disney has done an impressive run and managed to use its debt as a positive. And shareholders are not that concerned. But the same cannot be said for Netflix. Debt for the company that is primarily focused on the same activities as the Entertainment arm of Disney could weigh heavily on the streaming giant.

They already shed the Star brand and handed over Hotstar to Mukesh Ambani’s Jio. Moreover, both Netflix and Disney seem not to be focusing much on India, as far as investments are concerned—given the much lower revenue per subscriber.

They also announced that Hulu would be phased out as a stand-alone app in 2026, with the brand replacing Star on Disney+ internationally. Disney is integrating instead of diversifying and creating a giant of a platform.

With their IPs and sheer catalogue of films and series, Netflix might have to stand down in this fight. Disney seems also to have gotten its grip back with Marvel, as the latest outings of Thunderbolts* and Fantastic Four: First Steps were well received by critics.

Alien: Earth, based on the original 1979 Ridley Scott Alien, is expected to hit Hulu soon (and Disney+ eventually). Netflix’s latest plan to consolidate more sports and pay-per-view events may have found steam with a few hit concerts, boxing matches and even the WWE. But Paramount is also moving in. Their latest? A $7.7 billion bid for exclusive US broadcast rights to the Ultimate Fighting Championship for seven years.

Recent Netflix shows have also been criticised for being too “second-screen” friendly. In fact, Apple TV+ shows such as Foundation and Severance have given the streamer much to worry about.

Netflix has healthy financials. But it seems to be fighting the world. Disney, on the other hand, has only to beat Netflix.

Business