Things are changing for YouTube and content providers. The part that is making headlines is the section titled "Notice for Termination or Suspension". You can find the new December T&C here (YouTube T&C Link).
The specific language of this section:
YouTube may terminate your access, or your Google account’s access to all or part of the Service if YouTube believes, in its sole discretion, that provision of the Service to you is no longer commercially viable.
As Disney jumps into the streaming game. Subscriber growth is impressive with 10M+ people signing up in a day or two. Its great to see successful launches.
When looking at the revenue generated by these companies, Disney is outpacing Netflix by 3.5x what Netflix earns.
What is strange is Netflix trades at 93x its earnings vs Disney's more reasonable 16x earning. If Disney is just moderately inflated, though making 3.5x the revenue, Netflix PE ration of 93 is nuts.
The release of Disney+ adds to the streaming wars. Yahoo Finance noted today that with Disney+, the parent (Disney) is now has a market cap of Netflix. Does Netflix raise to the level of praise with the likes of Disney??
As Yahoo pointed out, Disney has a market value of $268B vs Netflix's $124B
As I start to peal this onion, the first question is what are the outstanding shares:
October 2019 Bureau of Labor Statistics report 95,269,000 people are not in the in the labor force. Near 30% of the entire US population (350M) do not work. This 95.2M is an important component when looking at the employment in the US.
BLS A-38 Report: https://www.bls.gov/web/empsit/cpseea38.htm
US population grows at a rate that requires 150,000 jobs be created every month. 150K is the key number to remember every month when job numbers are released by the US government.
If less than 150k, economy contracted. Greater than 150k, growth in the economy. =150k then just growing as par. I will explore over the next several posts what the economy may be looking like based on the released number.
If you don't know the 150k rule then you may be misled by the headlines.