There is no doubt that Netflix has disrupted TV and movie consumption methods in the past few years. More than half of US households subscribe to the service and almost 35 million households cut their cable service in the past decade.
Netflix’s stock price has climbed a whooping 8300% in a matter of just 10 years. It has seen competitors rise in the past few years, such as Amazon Prime and Hulu. But it is going to face the strongest competition in the coming 6 months.
Why? Because Disney has announced the launch of its own streaming service, Disney+.
This will impact Netflix as well as other streaming services majorly. Netflix, like the others, has disrupted the mode of consumption, and dominates in the distribution of content—not the content itself.
This dependency on distribution will cost Netflix with the launch of Disney+. Not because the latter costs $6.99/month ($6 cheaper than Netflix); but because Disney owns the world’s top performing brands, such as Marvel, Pixar Animations, Star Wars, ESPN, National Geographic, Modern Family, The Simpsons, and so many more.
Imagine if it pulls all its contents from Netflix. And gives you the opportunity to watch its latest Avenger films right on your laptop a week after it launches in the cinemas. Who wouldn’t go for Disney+?
We are curious to see how Netflix fares in the face of competition from the world’s undisputed king of content. Read more about why Netflix needs to pull off a miracle to survive here.