Why America’s biggest investor Michael Burry thinks that Netflix makes milk, while Disney makes wine

America’s biggest investor Michael Burry who is also known for predicting the famous housing crash has said that the difference between Disney and Netflix comes down to longevity. According to a report by Business Insider, in a new post on Substack, he wroteDisney produces wine. Netflix produces milk.” Burry argued that Disney’s storytelling ages well and becomes more valuable over time, while Netflix’s biggest hits are enjoyable in the moment but lack long-term staying power. “One lasts and even gets better with time, one is just fine for now, but most certainly does not get better with age,” he said. He further explained that he often applies an ‘evergreen test’ to Netflix asking whether its shows can be watched repeatedly across generations. Disney-owned franchises such as Star Wars, The Avengers, Toy Story and Moana pass that test, he said, as do Pixar films and even Warner Bros. properties like Harry Potter. Netflix’s hits — including Stranger Things, Squid Game and KPop Demon Hunters — don’t meet that standard, he wrote. Even the viral success of Suits on Netflix, he noted, benefited the show’s creators more than the platform itself.

Disney’s IP machine vs. Netflix’s streaming model

Burry further highlighted that Disney’s strength lies in its ability to monetize intellectual property across movies, TV, theme parks, cruises, retail and gaming, creating a multi‑layered ecosystem where stories live for decades. Netflix, he said, remains primarily a streaming platform, dependent on a mix of original and licensed content. He described Netflix as “another player in a much more distributed and competitive streaming field.”

Netflix’s stock slide and rising competition

Burry also said Netflix stock doesn’t look like an obvious bargain, even after falling nearly 50% from its peak — dropping from over $130 last summer to $69 on Friday. The company has been hit by slowing revenue, subscriber stagnation and fierce competition, which has made it harder to retain customers and protect margins. Burry reminded readers that he warned about this years ago, tweeting in 2022: “The competition came for Netflix.”

Michael Burry to everyone saying software companies are ‘dead’

Recently, Michael Burry published a software-sector sector research report on May 29 and made it freely available on June 21 outlining which companies he believes are best positioned for the AI era and which face greater disruption risks. Burry pushed back against claims that software companies are ‘dead’, arguing that large language models (LLMs) cannot replace human creativity. “LLMs, no matter how advanced they get at being LLMs, will never beat that creative instinct of a talented human being,” he wrote. He also cited Adobe as a company unfairly discounted by investors, pointing to its expanding AI offerings like Firefly, Firefly Foundry, and Acrobat AI, and its distribution across ecosystems including OpenAI, Anthropic, Google, and Microsoft.Along with this, Autodesk was highlighted as well-positioned, given its role in industries where expertise, accountability and regulatory requirements remain central areas where AI tools cannot easily substitute human oversight.