Netflix Overtakes Disney in Pure Profit as Streaming Giant Redefines Hollywood Economics

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Hollywood long operated under the idea that bigger is always better. Companies believed massive theme parks, resorts, TV networks, and well-established franchises guaranteed success. However, recent financial results for 2025 have proven this wrong. Netflix has now earned more profit than The Walt Disney Company, even though it makes less than half the revenue and doesn’t own any of Disney’s large physical locations like parks and resorts.

As financial expert Valliant Renegade explained in his analysis of the recent earnings, this result was widely expected and has been coming for a while.

Look, I’ve been predicting this for over a year now, and it’s honestly mind-blowing. Netflix is actually making more profit than Disney, and that’s huge! Think about it – Disney’s a massive company with theme parks, resorts, cruise ships, ESPN, ABC, tons of TV channels, and they’ve been licensing characters for a century. Plus, they have three streaming services! Netflix? They just have…Netflix. Disney probably owns around $100 billion in properties, while Netflix barely has any. Yet, despite all those advantages, Disney is pulling in less profit than Netflix, and Netflix is doing it with less than half the revenue! It’s pretty incredible when you break it down.

That contrast is the story.

Scale Didn’t Save Disney — It Weighed It Down

Let’s talk about Disney. They’re a huge company, but that size comes with a lot of expenses. Maintaining their theme parks is a never-ending investment, resorts need constant attention, and cruise ships lose value over time. Their traditional cable networks are losing viewers, and running ESPN is getting pricier and pricier. Honestly, their streaming approach – with Disney+, Hulu, and ESPN+ all separate – feels deliberately confusing when it comes to figuring out if any of it is actually making money. It’s hard to get a clear picture of their overall profitability, and that’s a bit concerning.

Let me tell you, Netflix has a really straightforward strategy. It’s all about having one central platform, reaching viewers everywhere, and constantly keeping a close eye on profits. They don’t mess around with complicated systems – it’s a remarkably lean operation.

Netflix doesn’t own hotels, theme parks, cruise lines, or cable channels, and it doesn’t bail out traditional media companies. Despite being initially seen as simply a streaming service, Netflix now actually makes more profit from each dollar it earns than Disney—a surprising turn of events.

Transparency vs. Obfuscation

Another key difference lies in how both companies present their financials.

Netflix is very transparent with its financial data, providing clear breakdowns of revenue, profits, and how it performs in different regions. Disney, however, makes it harder to understand its results, particularly for its streaming services. They combine data from different platforms, making it difficult to see how each one is actually performing.

This matters because investors increasingly reward clarity and punish opacity.

Netflix’s clear financial reporting builds trust. Disney, however, uses complex accounting methods that are concerning, especially as it focuses more on streaming and older parts of the business continue to affect profitability.

The Market Has Already Rendered Judgment

The impact goes further than just financial results. Netflix is now worth significantly more than Disney in the stock market, even though Disney owns a huge amount of physical property and established franchises that would normally support a higher valuation.

Wall Street is now valuing companies based on how well they perform, not just their physical assets or past reputation. Netflix excels in efficiency, consistency, and making a profit, while Disney is currently falling short in these areas.

This isn’t a matter of the content being good or appealing to audiences. It’s a basic business problem, and the financial figures are becoming harder and harder to present in a positive light.

Netflix didn’t just catch Disney. It passed it — quietly, cleanly, and decisively.

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2026-01-21 19:57