Disney and Hulu Finally Becoming Real Competitors to Netflix

Netflix (NASDAQ: NFLX) has sucked almost all of the air out of the room in the streaming business, building a $72 billion market cap in the process. And for good reasons. The company has 104 million global subscribers and is building a content giant that it hopes will be able to withstand every other content company launching their own streaming platforms.

There's no question that Netflix has built a big business, but it hasn't been terribly profitable, netting $363 million in income over the past year for a P/E ratio near 200. On top of that, it has $15.7 billion in streaming content obligations and $4.8 billion in long-term debt. Those could become problems as competitors begin to offer more compelling content, and Hulu -- which is owned by Disney (NYSE: DIS), Twenty-First Century Fox (NASDAQ: FOX), Comcast (NASDAQ: CMCSA), and Time Warner (NYSE: TWX) -- and Disney are the two to watch over the next couple of years.

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Source: Fool.com