Value Differences: Tech Growth vs. Aging Media Models

Streaming companies, especially Netflix, operated under a tech growth paradigm that prioritized subscriber expansion over immediate profits, accumulating significant debt with investor support. In contrast, traditional media companies like Disney, with a longstanding history of profitability and shareholder dividends, adhered to more cautious financial practices. Disney leveraged the cable bundle model, which efficiently delegated customer management and technical issues to distributors, allowing them to focus solely on content creation. This reliance on established revenue streams may explain Disney's hesitance to fully pivot towards streaming despite the changing landscape, as they lacked the same operational flexibility enjoyed by streaming newcomers.