Netflix’s Stock Split Confirms Its Unrivaled Dominance in the Global OTT Market

Growth Rate Doubles Rivals at 15%
Outpacing All Global OTT Competitors in Revenue and Growth
Consolidating Market Power as Domestic OTT Platforms Sink Deeper into Losses

Netflix has announced a 10-for-1 stock split, lowering its share price from over $1,000 to the $100 range to improve investor accessibility. However, analysts interpret the move as a symbolic declaration of the company’s complete dominance over the global streaming landscape. As the balance of power in the streaming industry tilts decisively toward Netflix, competitors such as Walt Disney and Warner Bros. Discovery (WBD)—along with Korean OTT platforms—are facing mounting structural decline. Netflix’s overwhelming lead is effectively reshaping the entire OTT ecosystem.

Netflix posted third-quarter revenue of $11.5 billion, doubling Disney and quadrupling WBD

According to CNBC on the 30th (local time), Netflix will issue nine new shares for every existing share to shareholders of record as of November 10. The newly split shares will begin trading at adjusted prices on December 17. Netflix’s share price has exceeded $1,000 per share over the past three years, closing at $1,089 on the 30th—up 22.81% year-to-date. Among S&P 500 companies, only 10, including Netflix, currently trade above $1,000 per share.

The market views Netflix’s stock split as a signal of its near-total control over global entertainment distribution. The company continues to outstrip competitors in both revenue and growth, further strengthening its grip on the streaming market. According to its filings released on the 26th, Netflix recorded third-quarter revenue of $11.51 billion, far surpassing Disney and WBD. Quarterly streaming revenue alone was roughly twice that of Disney and four times WBD’s. From Q4 of last year to Q3 of this year, Netflix consistently expanded its revenue base, adding between $700 million and $1 billion each quarter.

Even more striking is its growth rate. Over the past eight quarters, Netflix has averaged 15% revenue growth—more than double that of Disney and WBD. A report released last month by Wall Street research firm MoffettNathanson projected that neither Disney nor WBD would see any meaningful rebound in growth during the second half of this year.

Netflix’s success lies in its differentiated pricing strategy. The company’s ad-supported basic plan is priced at $7.99 per month—$2 to $3 cheaper than competitors—effectively attracting price-sensitive consumers. In contrast, its premium plan is more expensive than those of its rivals, enabling Netflix to retain high-value subscribers with low price elasticity. Advertising has also become a key driver of revenue expansion. Co-CEO Greg Peters said, “Our ad revenue more than doubled year-on-year. While it’s still smaller than our subscription revenue, it’s growing rapidly.”

Paramount Cuts 3.5% of Workforce as Disney and Warner Accelerate Media Restructuring

This stands in stark contrast to U.S. competitors, many of which are undergoing large-scale layoffs. In June, Paramount Global, struggling with declining subscribers, announced plans to cut 3.5% of its U.S. workforce. Co-CEOs George Cheeks, Chris McCarthy, and Brian Robbins stated in an internal memo, “Starting this week, we are taking difficult but necessary steps to streamline the organization.” Paramount had already announced a 15% workforce reduction in August last year.

Disney, too, has continued its downsizing efforts since early June, targeting marketing, publicity, casting, and production development divisions within its film and television business, as well as corporate finance operations. A Disney spokesperson said, “We are continually evaluating ways to manage our business efficiently while fostering innovation and creativity,” noting that the company is “reducing select positions as part of this process.”

Disney previously cut 7,000 jobs in 2023 and eliminated another 200 positions this March across its ABC and entertainment TV networks. WBD and Comcast have also undertaken multiple rounds of restructuring and workforce reductions over the past two years. These measures reflect efforts by traditional media giants to improve profitability and identify new growth drivers amid fierce competition with Netflix.

Korean OTT Platforms Remain Deep in the Red Despite Superficial Growth, Unable to Match Netflix’s Production Scale

Korean OTT platforms have also been hit hard by Netflix’s dominance. Once seen as a rising domestic contender, Watcha filed for corporate rehabilitation in August. Founded in 2011 as a personalized film recommendation service, Watcha expanded into streaming in 2016 and earned a loyal following for its curated selection of indie films and foreign dramas. However, as competition intensified, the company’s financial difficulties deepened.

Operating within a limited domestic user base, Watcha lacked the capital to invest meaningfully in content production. The company issued $49 million in convertible bonds in 2021 but continued to suffer heavy operating losses each year. Merger talks with LG Uplus and others collapsed, and when the bonds came due last November, Watcha was unable to meet repayment obligations. Enlight Ventures, which had invested $20 million, filed for court receivership. While Watcha claimed that its services would continue “without disruption,” analysts view it as entering a de facto restructuring phase for survival.

Watcha’s downfall underscores the harsh reality for Korea’s OTT sector. With Netflix dominating the market, most domestic platforms are unable to shoulder the enormous cost of content production and remain trapped in persistent losses. According to Consumer Insight’s “Mobile Communication Market Survey for the First Half of 2025,” Netflix holds a 54% subscription share in Korea—the highest in the market—with a 62% satisfaction rating.

By contrast, TVING has posted operating losses for five consecutive years, while Wavve continues to struggle with stagnant revenue and weak profitability. In 2024, TVING and Wavve recorded operating losses of $51 million and $20 million, respectively. User engagement metrics also remain underwhelming. Data analytics firm Mobile Index reported that Netflix had 14.75 million monthly active users (MAU) in September, followed by Coupang Play with 7.73 million, TVING with 5.89 million, Wavve with 2.39 million, and Disney+ with 2.25 million. Even combined, TVING and Wavve total just 8.28 million users—barely half of Netflix’s.

Industry observers cite the absence of economies of scale as the core weakness of Korean OTT players. In digital platform businesses, “increasing returns to scale” dictate that as user bases grow, efficiency in production, marketing, and technology development improves exponentially. Netflix’s ability to invest over $20 billion annually in content stems from its 300 million–plus global subscribers. By contrast, domestic OTT services can allocate only around $70 million per year for content production. “A single Netflix series like Crash Landing on You cost nearly $45 million to produce,” said one domestic platform executive. “To put it in perspective, the entire annual production budget of KBS, which runs multiple broadcast channels, is roughly $120 million. Netflix spends nearly half that on just one show. Competing under such financial disparities is simply impossible.”