US biggest investor thinks that Netflix makes milk, while Disney makes wine
Investor Michael Burry contrasts Disney's long-term intellectual property value with Netflix's streaming-focused model, comparing the former to 'wine' and the latter to 'milk.' He argues that Disney's evergreen content creates a more sustainable ecosystem than Netflix's reliance on transient hits.
Why it matters
The comparison highlights the ongoing debate regarding the valuation of streaming platforms versus traditional media conglomerates in a competitive market.
America’s biggest investor Michael Burry who is also known for predicting the famous housing crash has said that the difference between Disney and Netflix comes down to longevity. According to a report by Business Insider, in a new post on Substack, he wroteDisney produces wine. Netflix produces milk.” Burry argued that Disney’s storytelling ages well and becomes more valuable over time, while Netflix’s biggest hits are enjoyable in the moment but lack long-term staying power. “One lasts and even gets better with time, one is just fine for now, but most certainly does not get better with age,” he said. He further explained that he often applies an ‘evergreen test’ to Netflix asking whether its shows can be watched repeatedly across generations. Disney-owned franchises such as Star Wars, The Avengers, Toy Story and Moana pass that test, he said, as do Pixar films and even Warner Bros.
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