Why Netflix Is Threatened by the Disney+ Streaming Platform
Netflix gave us a new age of streaming that transformed the TV industry profoundly. In fact, in just the past ten years Netflix’s stock (NFLX) has increased over 8,500%! This happened when so many people switched from watching movies and TV shows on cable to this streaming service. It seemed like the old days of cable were entirely gone. But Netflix is now threatened, mainly by the Disney+ service.
Disney+ service is going to be hosting Marvel shows such as Loki, WandaVision, Hawkeye and The Falcon and the Winter Soldier and What If? These shows of the Marvel Phase 4 are not the only reason Netflix is under threat.
Success Days of Netflix
It might be hard to believe but there was a time when the only streaming service available to the American public was Netflix. There was no Amazon Prime, Hulu or Disney+. Plus, Netflix was making a lot of good business decisions. Its founder Reed Hastings leased shows and movies that were produced from other companies.
Essentially, a lot of media companies were actually in support of Netflix. For instance, they acquired the rights of important movies from Disney such as all the Marvel Avengers movies and NBC’s popular sitcoms such as Friends. The result? Well, to date it has 149 million subscribers! That’s more than any other cable company.
Netflix Now In Trouble
Netflix, like Apple, had an edge when they first started their streaming service. They had absolutely zero competition. Obviously, you’re gonna get a big chunk of the market share when there are no other companies competing against you. Of course, knowing the incredibly capitalist world, this wouldn’t always remain the case for Netflix. Soon, many other companies wanted in on this streaming game. And the first thing they did? End their own contracts with Netflix.
Netflix Gets Competition From Disney+
We see this happening mostly with Disney. Disney is ending its contracts with Netflix because they wanted to launch their own streaming service Disney+. This has led many to believe that Netflix is canceling Marvel shows such as Luke Cage for this reason.
So, Disney+ is going to launch this year and it is going to give you all of its movies and TV shows. Some of which we are already familiar with such as all of the Avengers series and some that were announced in the San Diego Comic-Con Panel recently.
The best selling movies of this year were namely Aladdin, Captain Marvel, and Avengers: Endgame. Guess who owns them? Not Netflix but Disney. But this is just 2019, right? Surely, Disney can’t have all the highest-grossing movies to itself. Well, that’s where you’re wrong.
In 2018 the highest-grossing movies were Avengers: Infinity War, Incredibles 2, Black Panther; while in 2017 it was Star Wars: The Last Jedi, Beauty and the Beast and Guardians of The Galaxy 2. All 6 of these movies are owned by Disney. As of now, they’re still on Netflix. But their contract is ending soon because Disney+ is going to provide you access to all of Disney’s plethora of movies and TV shows. And for that you’re gonna have to pay a subscription of $6.99 a month.
Wait What About The Rest of The Content Not Owned By Disney?
Of course, there is a lot of content on Netflix currently and yes not all is owned by Disney. But their best content is going to be removed very soon as well. That’s because a lot of the owners of that content are planning to launch their own streaming services. AT&T, a cell phone company, has now become a media powerhouse by buying WarnerMedia last year. It also owns HBO. Basically, shows such as Friends will now be streamed on AT&T. NBC Universal, which owns The Office, will end its contract with Netflix too when it launches its own streaming service.
Can Netflix Still Survive
It’s hard to say if Netflix would be able to survive. It hasn’t been profitable as it should. Moreover, they even had to spend $12 billion the previous year while they were still $10.3 billion in debt. This meant they only earned $1.2 billion which is not enough to successfully compete against big leagues such as Disney and AT&T.