Disney Leaving Netflix, explained
By Eddie Forson
A major reason Netflix is still competitive is mostly attributed to their numerous award winning original shows and movies which much like their competitors' is exclusive to their streaming platform.
Disney CEO Bob Iger recently revealed in recent earnings reports to CNBC that the entertainment industry giant aims to pull all their movies from the popular movie streaming service, Netflix. The CEO also said that the company had a “good relationship” with Netflix but decided to move their content off the streaming platform in pursuit of other options.
The company’s motivation for this move is the launching of their own streaming service set to debut in 2019. The service that Disney will be offering will include Disney shows as well as movies. The platform will also feature every new Disney/Pixar movie moving forward from 2019.
This raises issues for the current beholder of movie streaming crown, Netflix. The aforementioned announcement quickly dropped Netflix’s stocks more than 2% the very next day. Will Disney’s move inflict any real damage on Netflix? We can take a look at Netflix’s current competition: Amazon Video, the video streaming service that comes with Amazon’s Prime subscription and is famous for “Sneaky Pete” and “Transparent”, Hulu and HBO Go which is currently the only place to find HBO’s award-winning TV show Game of Thrones.
While all these competitors offer the same kind of streaming services, they all have something unique to them which gives them a slight edge in the competition. The reason why Netflix is still on top is mostly attributed to their numerous award winning original shows and movies which much like their competition’s, is exclusive to their streaming platform.
The reason why this split could potentially hurt Netflix is that the removal of Disney’s movies and shows from their platform means that they could possibly lose the licenses to other components of the Disney universe such as “Marvel” and ”Lucasfilms” to name a few. Losing those licenses means loss of content which is one of the reasons why Netflix is so popular; their wide range of movies available to stream at the push of a button.
This also affects some of Netflix’s currently popular and upcoming shows which utilize the Marvel Cinematic Universe. Since Disney owns Marvel Comics, it is unclear whether shows such as “Daredevil”, “Luke Cage” and “Jessica Jones” will stay on Netflix or will be moved to the upcoming Disney streaming service. This has potential to damage Netflix’s subscribers as those shows are really popular and streamers might be forced to relocate to Disney to get their fix of Marvel TV shows and movies as well as Disney shows and movies.
Photo by Annie Spratt