Why Disney+, Not Netflix, Could Soon Emerge As The No 1. Streaming Service

Walt Disney Co. (NYSE: DIS) and Netflix, Inc. (NASDAQ: NFLX) shares are trading lower on Thursday, amid concern that a second wave of the coronavirus could hit the U.S.

A second wave means movie theaters and cinemas could take longer to reopen and, in turn, viewers could see more film production companies striking deals to have their movies released on streaming services.

"I think that you could see simultaneous releases both in theater and available on pay-per-view at major premium prices at the same time," Tigress Financial analyst Ivan Feinseth told Benzinga in an email.

House Of Mouse: Feinseth said Disney will remain focused on its own content because it has so much and has the capabilities to produce so much.

"I believe that Disney+ along with their Disney+ that includes Hulu and ESPN+ will become the number one streaming service,” Feinseth said.

The analyst said it's all about brands, and franchises like Star Wars and Marvel are all "very powerful."

What About Netflix? Netflix has benefited from increased streaming and home entertainment demand as a result of social distancing and theater closings.

"I think that Netflix will continue to be a large buyer of content as well as developers and so will Apple and Amazon," Feinseth said.

Going For Gold: Apple Inc. (NASDAQ: AAPL) just outbid Netflix for Martin Scorsese's next movie with Robert DeNiro and Leonardo DiCaprio. Feinseth thinks "Killers Of The Flower Moon" is going to be even bigger than "The Irishman."

"'Irishman' had a limited release in theaters so it could be considered for the Oscar and I believe that 'Killers Of The Flower Moon' will do the same," Feinseth said.

Price Action: Disney shares traded down 7.8% at $112.64 on Thursday. The stock has a 52-week high of $153.41 and a 52-week low of $79.07.

Netflix shares traded down 2% at $425.56. The stock has a 52-week high of $458.97 and a 52-week low of $252.28.

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