Better Streaming Stock to Buy in 2025: Disney or Netflix?

As we approach 2025, the streaming wars continue to heat up, with Disney and Netflix leading the charge. Both companies have seen remarkable growth and success, but which one is the better investment for the coming year? Let's dive into the key factors driving subscriber growth, content strategies, and financial projections to make an informed decision.



Subscriber Growth and Retention

Disney and Netflix have both experienced significant subscriber growth, but Disney's marketing and promotion efforts have been particularly successful. The launch of the combined Disney Plus and Hulu app added 7.9 million subscribers in the US and Canada, while Netflix's popular content like "Squid Game" Season 2 and the Jake Paul vs. Mike Tyson fight have driven engagement and retention.

Content Strategies

Disney's content strategy focuses on cost-cutting measures and improving its ad-supported tier, while Netflix has expanded its gaming offerings and cracked down on password sharing. Disney's vast library of high-quality content, including Pixar, Marvel, Star Wars, and Disney-branded content, has driven subscriber growth. However, Netflix's diversified revenue streams and continued subscriber growth suggest a more sustainable and profitable content pipeline.



Financial Projections

Disney expects its streaming business to generate $43.5-$44.5 billion in revenue in 2025, with an operating margin of 29%. Netflix is expected to generate $31 billion in subscription revenue in the same year. While Disney's projected revenue is higher, Netflix's diversified revenue streams and continued subscriber growth may lead to more sustainable earnings in the long term.



The Better Investment

Based on the information provided, Netflix appears to be the better investment for 2025. Its diversified revenue streams, continued subscriber growth, and more sustainable content pipeline make it an attractive option for investors. However, Disney's strong content library and competitive pricing strategy make it a formidable competitor in the streaming market.

Ultimately, the choice between Disney and Netflix depends on your investment goals and risk tolerance. Both companies have shown remarkable growth and success, and both are worth considering as potential investments in 2025. Keep an eye on their content strategies, subscriber growth, and financial performance to make the best decision for your portfolio.