Netflix depends less and less on licensed content from the likes of Disney

When Walt Disney Co. said a couple of weeks ago that it would stop licensing its movies and TV shows to Netflix Inc. in favor of launching its own service, investors were predictably concerned.

However, Netflix NFLX, -1.30% should be just fine.

Also read:Netflix will survive the Disney cord-cut, and here’s the proof

According to Monness, Crespi, Hardt & Co. analyst James Cakmak, films and TV shows Netflix licensed from distributors such as Disney DIS, +0.88% were the foundation that helped Netflix generate the cash flow that allowed it to build its original programming library.

But it’s Netflix’s original content that now drives subscriber growth.

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