Netflix finally has competition, it's Disney
Disney has set its sights at the streaming industry for a while. Talks of the company starting a streaming service have been going around since before 2017. Finally, it has been stated by Disney that they will launch their service on 12 November 2019. It has been named Disney+ and it’s in a direct collision course with all the existing streaming services like Amazon Prime Video, Hulu, and most importantly Netflix.
Difficult scenario for Disney
Netflix is by far the biggest streaming service in the world right now. It has around 139 million paid subscribers worldwide. For comparison, Amazon Prime Video has around 20 million and Hulu has less than 1 million. Even the closest competitor falls short by more than 100 million users. In this environment, Disney has decided to disrupt the market and take over Netflix’s reign with Disney+.
That is not an easy feat to accomplish. There need to be concrete plans and attractive offers for customers to make the jump from one product to another. Disney knows this and has already taken steps. Its streaming service will allow users to sign up for only $6.99 a month or $69.99 a year. When compared to the prices offered by Netflix of $7.99 a month, it’s a whole dollar less. Clearly, Disney+ wins in the when it comes to the price plans provided.
Price is not the only consideration for the audience though. Being cheaper does nothing if there’s nothing to be gained in return for the money. If there are no shows or movies that people would actually want to watch on the platform, there will be no reason to switch. Netflix gives its users access to around over 5,500 titles that include both TV shows and movies. Disney needs to start with at least somewhat comparable catalogue to stand a chance.
A handful of brilliant shows
The people at Disney also realizes this, and seemingly, they are ready to step up to the challenge. Disney+ will have all the classic Disney movies like Bambi and The Lion King, the Star Wars movies, and Marvel’s and Fox’s original movies and shows like The Simpsons. They also plan to have at least a dozen or so Disney originals up on the platform in the first year of its operation. All of these will be exclusive to Disney+.
That means Netflix might lose the rights to show Marvel movie or Fox shows on its site and have to concede them to the mouse.
On top of all this, Disney has resolved to weather through losses up until 2024. They expect that the service will not be profitable until 2024 and they are ready to stick with it until then. That kind of commitment can only be made by Disney and it’s hard to imagine that any other company will be able to go toe to toe with that level of dedication.
The announcement of Disney+ has been a meteor to the media industry. The ripples of the impact can only be felt as all the players are shifting in their seats. The aggressive pricing plan and the enviable library of content that the service is poised to launch with will change the landscape of streaming service industry for certain.