Netflix is now worth more than Disney thanks to a surge in viewership during pandemic

If it wasn’t already obvious what people have been doing while staying home during this pandemic, it certainly is now.

Netflix just announced its biggest quarter ever on Tuesday.

The most shocking number from Netflix’s Q1 2020 results: The video streaming service brought in 15.77 million new global paid subscribers.

This huge number blew all prior expectations out of the water. Netflix had previously projected 7 million new subscribers before the coronavirus pandemic. Analysts had estimated 8.22 million new subscribers on average.

Netflix’s prior quarterly record for new subscribers was 9.6 million additional global subscriptions in Q1 2019. The company’s previous quarter, Q4 2019, brought in 8.76 million new subscribers.

The company also reported $709 million for its first quarter 2020 earnings. The streaming giant had shared earnings of $344 million for the first quarter last year.

Netflix’s stock has been rising in recent days. Its market capitalization at the end of Tuesday was more than $190 billion, making the streaming company worth more than Disney.

“There are two main reasons why Disney has struggled while Netflix has prospered,” explains Danyaal Rashid, thematic analyst at the data firm GlobalData, in a statement shared with Mashable. “Firstly, unlike Netflix, Disney is reliant on ad revenues due to its broadcast offerings, and this revenue stream is drying up rapidly. Secondly, COVID-19 has forced Disney to close its theme parks, which generate more than a third of its revenues, delivering a huge hit to the company’s top line.”

Netflix’s letter to shareholders also shared just how big of a success Tiger King is. The popular docuseries was watched by 64 million households in its first 4 weeks. That ties it with Stranger Things’ latest and most popular season. However, it falls short of Netflix’s most popular first season of TV, The Witcher.

As quarantine and stay-at-home orders now hit the one-month mark for many in the U.S., people have turned to various forms of entertainment to keep them busy during the coronavirus pandemic. And it looks like the biggest beneficiary of nearly everyone being stuck at home is Netflix.