Better Streaming Stock: Disney vs Netflix

Shares of the leading streaming services have underperformed during the broader market this year. Year to date, the widely followed S&P 500 index has tumbled 19%, but Walt Disney (NYSE: DIS) and Netflix (NASDAQ: NFLX) are down 39% and 71%, respectively. 

One of the common themes surrounding the negative sentiment for both stocks is concerns around demand for streaming, especially after Netflix reported a subscriber loss of 200,000 in the first quarter. 

To boost subscriber growth, Disney and Netflix have announced plans to offer ad-supported plans to widen the addressable market for their streaming platforms. Disney officially unveiled its plans in a press release on March 4, while Netflix indirectly gave investors a hint it was leaning in that direction on its Q1 earnings call.  

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Source Fool.com