TODAY'S CHARTS: Why Netflix doesn't need Disney

Justine Underhill

It’s a tale of unrequited love.

Disney (DIS) announced it’s going it solo, creating its own streaming service. And that means it won’t be putting any of its newly-released content on Netflix (NFLX) starting in 2019.

So what’s the fallout? Well, it wiped a couple billion off of Netflix’s market cap.

The news also took a toll on other media giants. Viacom (VIAB) shares lost 2.5%, CBS (CBS) fell 1.6%, and 21st Century Fox (FOXA) dropped 2%.

Netflix can move on after the Disney breakup

But parting ways with Disney isn’t such a terrible thing for Netflix. It only struck the deal to stream Disney movies a year ago, and it had a strong base of subscribers before that deal even began.

Netflix has also been upping the ante on its original content. That’s been a sore spot for investors as Netflix’s free cash flow has taken a hit (burning more cash than Tesla in the 12 months ending in March). But so far, its strategy has paid off. Plus, as we learned, it’s probably more risky to rely on partners like Disney.

Netflix could see the writing on the wall, which helps explain why the company made its first ever acquisition in its 20-year history. It’s buying Millarworld, a superhero comic book studio, which could serve as a potential replacement for Marvel.

So Netflix won’t be left high-and-dry as Disney launches a competing service.

For more on Netflix and Disney, check out the Final Round, starting at 3:55 p.m. ET, right here on Yahoo Finance.