Mickey Mouse Rolls Up His Sleeves To Battle and Win The Streaming Wars
Disney is not Mickey Mousing around about streaming
When Disney announced its new streaming service Disney Plus, I knew it meant Netflix was about to face its biggest competition to date. Recent moves by Disney have proven it’s not Mickey Mousing around about streaming.
The future of the company depends on it.
CNBC reported in October, Disney would restructure its media businesses into a signal entity with Disney Plus as the central piece of the media division. If you're wondering what the future of cable television is, this restructuring is a great clue.
Disney sees the writing on the wall for many cable channels as more consumers "cut the cord" from cable and sign up for streaming services like HBO Max, NBC Peacock, and ESPN Plus, another Disney owned media property.
When it comes to owning valuable content and profitable media brands, Netflix cannot compete with Disney. To be honest, I'm not sure any streaming service can come close to matching the number of movies and shows Disney has in the famous Disney vault.
The Walt Disney Company has a decades head start on Netflix and owns some of the world's most valuable movie brands: Marvel, Star Wars, Pixar, and Mickey Mouse. In addition, they now own the 20th Century Fox movie library, which gives them even more content.
While Netflix can't compete with Disney in terms of its amount of content, the service can compete successfully with Disney to provide new content and create new media brands.
House of Cards, Stranger Things, The Crown, (Tiger King?!) are just some of the successful brands Netflix has created. We all enjoy the classics Disney can provide, but eventually, you want to see a new story and new content is where Netflix can successfully compete with Disney.
Netflix spends billions per year producing content, and Disney plans to add 50 new Marvel, Star Wars, Disney, and Pixar series over the next few years. This is in addition to other announced movies and shows coming to the service.
The amount of TV that is produced now is mind blogging, and I have given up even trying to watch all the new TV shows I should watch. There is only so much time in a day, and I can't watch everything on HBO Max, Peacock, Netflix, Hulu, and all the other apps I've forgotten.
Usually, at night, I just give up and watch reruns of Seinfeld because trying to find something to watch with all the choices is a task in itself.
Of course, all this content costs billions to produce, and Disney Plus has already announced a price increase is coming soon.
With a company projected 350 million subscribers worldwide by 2024 (Netflix is projected to have 305 million by the same year), the House of Mouse should have more than enough cash to spend on productions.
While Disney will eventually overtake Netflix as the world's largest streaming service, I wouldn't underestimate Netflix because the original streaming service's popularity is not going to decrease.
Netflix will be a very competitive and profitable number two to Mickey.
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