Over the past three years, the global media and entertainment industry has been defined by the streaming war. Every media company created a streaming service to compete. Only the strongest will survive, the narrative goes. The losers will merge or die.
Last year, the streaming wars did not stop, but a metaphorical meteor approached the world of entertainment with slow growth. For the first time, Netflix customer lost. Its shares fell more than 60%. Disney, Comcast NBCUniversal unit, Paramount Global and The invention of Warner Bros has also changed its business to play streaming, so its stock has also dropped significantly.
Media companies are still the dukes for hit shows, advertising dollars and, ultimately, eyeballs. But imagine what will happen to Earth in the face of the apocalypse: Land wars will become less important. He may have stopped. The threat of mass destruction becomes a common enemy.
Here is Netflix’s latest quarterly earnings report. Netflix added 7.7 million streaming subscribers in the fourth quarter, beating analysts’ estimates, which was closer to 5 million. Netflix shares rose more than 6% after hours.
Previously, good news for Netflix was bad news for legacy competitors competing with Netflix. That day was over. Now, the band industry is together. Disney, Comcast, Paramount Global and Warner Bros. Discovery all rose slightly after the Netflix report.
Read more: Netflix founder Reed Hastings is giving up his CEO role
Media companies, at least for a while, find themselves up against a common enemy – tired streaming subscribers. Wall Street hates growth.
Netflix’s big quarter does not yet include the results of forcing password sharers to pay, a process that will begin soon. This is more good news for Netflix and the industry in general, which can follow Netflix’s lead. Netflix said it expects subscriber growth in the first quarter to be lower than in the fourth quarter due to general seasonality, but expects growth in the second quarter as more subscribers sign up than lose service due to Netflix breaking passwords.
The world of old media defined by Netflix is disrupting legacy industries. Now, like Netflix, so is the media world. A group of brothers. Sort of.
WATCH: Netflix shares soar after customer beat
