Almost two months ago, we wrote about why Netflix could not sustain its market in front of Disney+ without some serious changes to its content or business model.
With the latest news about Disney+ bundling its streaming service with ESPN+ and Hulu, to launch later this year at the same price that Netflix subscriber pay — could mean that the current streaming hero could be in much bigger trouble than many of us expected. Following are the 2 main reasons why:
1. Disney is the king of content
The Walk Disney company owns Avengers, the Marvel series, the traditional popular Disney movies — and is loyal fans both young and old. In fact, Disney-owned films “account for 10 of the top 15 global box offices of all time,” as reported by Forbes, The net worth of characters owned under the Walk Disney label are far beyond what Netflix has been able to achieve.
Sure, Netflix led the concept of binge-watching and changed the way content was consumed; it even led the new-movies-every-week concept to hook its audience. But how many of us can truly say those movies were generally worthy repeat watching? And how many of us have repeatedly watched our favourite Disney movies and marvel series a few times more than what our parents would consider normal?
2. It just makes economic sense for the consumer.
Disney has the fiscal and creative power to lure audience time and again. And even without the bundling of service providers under a single subscription, it would have been hard to beat Disney. Although, the competition might have been fun to watch.
But through bundling streaming subscriptions under the same price as what Netflix sells for, Disney has practically hit Netflix out of the park, just like Babe Ruth.
“That $12.99 bundle offers consumers tremendous volume, tremendous quality and tremendous variety for a good price.”Bob Iger, CEO and Chairman of The Walt Disney Company
We couldn’t agree more even if we wanted to dispute that claim. As much as we all love Netflix, the pressure on the service to innovate to be left far behind in the race is mounting. It’s only saving grace for the foreseeable against Disney is its presence across the globe — which Disney will take some time to reach.
Although, I wouldn’t count on it given Disney’s reach across the globe and its brand name, which is much popular even in the markets where Netflix has been present since a while. There is a rich cultural heritage and nostalgia attached to Disney after all.