Disney prepares to strike back at Netflix

[harrybarracuda]

The fan frenzy surrounding the freshly released teaser for Star Wars: Episode IX – The Rise of Skywalker serves as a timely reminder of Disney’s omnipotence at the box office. Now it is setting its sights on the small screen as well, by tackling global leader Netflix in the battle of the streaming services.


The company is banking on what it terms a “treasure trove” of assets to make its upcoming rival service, Disney+, a Netflix-killer. These span the Star Wars films; the Marvel universe of comic book franchises, including the Avengers and the X-Men series; Pixar films such as Toy Story and Finding Nemo; and its own animated output, including Frozen and The Lion King, and TV hits such as The Simpsons.

Netflix has until now shown a clean pair of heels to all-comers, but is facing a much stiffer test as the Hollywood studios pull their content to boost their own planned rival streaming services.


Also gearing up for streaming launches are: WarnerMedia, which owns studio Warner Bros (Lord of the Rings, The Lego Movie), HBO, and the rights to Netflix’s biggest show, Friends; and Comcast’s NBC Universal, owner of the US version of The Office – another Netflix hit – as well as Jurassic World and Fast andFurious maker Universal.

“Netflix’s content balance act continues to appear precarious,” says Michael Pachter, analyst at Wedbush Securities. “Over the next 12 months, we expect a large quantity of existing Netflix content to migrate away from the service. We estimate that these studios provide around 20% of Netflix’s overall content measured by available hours, and closer to 40% of hours viewed on the service.

“By the end of 2020, we expect all of this programming to have disappeared from Netflix, and we think the company will find replacing the content with originals a daunting task.”

Netflix is racing to commission its own programming to fill the looming void: it is focusing more than 85% of new spending on original content, and is expected to spend as much as $15bn on making and licensing film and TV shows this year.

Nevertheless, Netflix’s willingness to pay $100m to keep Friends for one more year, having previously paid about $30m a year, highlights the value of crowd-pulling content and the level of threat the streaming service knows it is facing.

Disney is gambling billions of dollar on the hope that it can catch up with Netflix, which has almost 150 million global subscribers. Disney+ will launch in the US in November, priced at $6.99 a month (Netflix’s most popular plan is $10.99), followed by rapid international expansion.

Keeping its content exclusive will cost Disney about $150m in licensing revenues this year, and $350m a year after that. Its original content budget, spent on fare such as TV spinoffs of Marvel and Star Wars, will rise to $2bn a year on 50 original series. Disney+ won’t make a profit until 2024 – if it can hit a target of between 60 and 90 million global subscribers.

Richard Broughton of Ampere Analysis doesn’t see Disney+ as a Netflix killer. “Netflix is diversifying away from its reliance on the big studios,” he says. “It is the largest commissioner of TV series in the world at the moment. Disney will certainly place more pressure on Netflix, but it has enough big tentpole titles to keep its subscribers watching.”

https://www.theguardian.com/film/2019/apr/13/disney-set-to-strike-back-at-netflix-star-wars-episode-nine

[Buckaroo Banzai]

Netflix started as a service to rival the video rental stores such as Blockbuster where rather than going to a store to pick up a movie and then having to return it, you received the desired movie in the mail and then returned by mai. As broad band increased why send the movie by snail mail when it can be delivered electronically? So they changed from a mail order service to an electronic service.
Then they changed their business model from a content distribution service to developing their own content and distributing it.
Great if you like their content, not so great if you don't.
I don't see Disney doing anything much different.
I want to see, what I want to see , when I want to see it, and I don't want to have to subscribe to hundred different channels to do it.
Who ever cracks this business model in the entertainment content distribution business will be king, everything else is just another player.

[Dragonfly]

Amazon is right behind it, and so is Apple

Next Google and Microsoft?

a lot of competition, don't see all this ending well

[Maanaam]

Netflix started as a service to rival the video rental stores such as Blockbuster where rather than going to a store to pick up a movie and then having to return it, you received the desired movie in the mail and then returned by mai. As broad band increased why send the movie by snail mail when it can be delivered electronically? So they changed from a mail order service to an electronic service.
Then they changed their business model from a content distribution service to developing their own content and distributing it.
Great if you like their content, not so great if you don't.
I don't see Disney doing anything much different.
I want to see, what I want to see , when I want to see it, and I don't want to have to subscribe to hundred different channels to do it.
Who ever cracks this business model in the entertainment content distribution business will be king, everything else is just another player.

You're right about the rise of Netflix.
This Disney thing will kick them to the sidelines, with the loss of Marvel, and with the addition of Warner et al.
I subscribe to NF, but will probably switch if I can to Disney.

What I want is one of these steaming services to have all seasons of GoT!

[harrybarracuda]

I want to see, what I want to see , when I want to see it, and I don't want to have to subscribe to hundred different channels to do it.

Be careful what you wish for.

One service offering everything would put everyone else out of business.

And once you have a monopoly?

No choice of content, and no competition on pricing.

[TizMe]

The problem with too many companies lining up is that eventually you'll need to have 20 different subscriptions to get most of what you want to watch.
Otherwise, a lot of people will just dump their subscriptions and go back to torrents.

[harrybarracuda]

The problem with too many companies lining up is that eventually you'll need to have 20 different subscriptions to get most of what you want to watch.
Otherwise, a lot of people will just dump their subscriptions and go back to torrents.

International rights are an issue, too.

You can't get stuff on Amazon Prime if they've sold it overseas.

[Buckaroo Banzai]

Be careful what you wish for.

One service offering everything would put everyone else out of business.

And once you have a monopoly?

No choice of content, and no competition on pricing.

How about many services offering everything with in limitations ? much like radio stations that plays the music of all artists.

[Thai Dhupp]

You're right about the rise of Netflix.
This Disney thing will kick them to the sidelines, with the loss of Marvel, and with the addition of Warner et al.
I subscribe to NF, but will probably switch if I can to Disney.

What I want is one of these steaming services to have all seasons of GoT!

Just jump on to your friendly torrent site (eg The Pirate Bay, Picktorrrent, etc) and download it.

I di....'might have done ' just that. 56 GB, series 1-7, for a GOT-fest (I was was one of the 9 identified individuals on the planet who had not watched any of the episodes at all).

Not wanting to miss out, I settled into the chair and switched on. Now half way through season 6 so...15 episodes to go!

i'm not advocating trying to get something that you should be paying for, for nothing, you understand...that's illegal, so I am just mentioning options

The Handmaids Tale might also be available (season 1 and 2), which is quite good...

[TizMe]

How about many services offering everything with in limitations ? much like radio stations that plays the music of all artists.

Radio station concept works because they aren't owned by the recording companies.

[Buckaroo Banzai]

Radio station concept works because they aren't owned by the recording companies.

Songs are owned by a recording company and or the artist and services like spotify or Apple music can disseminate them to the public and pay a negotiated fee to the owner/owners. I understand the current business model and the constraints, IMO both netflix , disney and the likes are simply becoming like any other TV channel with a on demand option.

[TizMe]

Disney have stated that they will not renew Netflix license agreements to Disney productions once they expire.

[harrybarracuda]

Songs are owned by a recording company and or the artist and services like spotify or Apple music can disseminate them to the public and pay a negotiated fee to the owner/owners. I understand the current business model and the constraints, IMO both netflix , disney and the likes are simply becoming like any other TV channel with a on demand option.

Currently the studios that make content are mostly reliant on other platforms to broadcast their content.

With streaming they can deliver it straight to the customer.

Ergo those who survive will be the ones with the best content.

Expect the smaller players to get swallowed up.

[Maanaam]

series 1-7, for a GOT-fest

S8 out yesterday. Winter has come