Disney And Apple Take On Netflix In The Streaming Wars

Disney And Apple Take On Netflix In The Streaming Wars

The streaming video market
is about to get crowded. It is a giant arms race. The streaming landscape has
been getting more competitive. Linear TV, no offense to
what we’re doing right here, is in trouble. Netflix, Hulu, Amazon Prime
Video and others are about to come head to
head with the likes of Disney Plus, Apple TV Plus,
HBO Max and CNBC’s parent company
Comcast NBCUniversal. It’s been dubbed
the streaming wars. A lot of people are
figuring out where they want to position themselves for
the future of TV. In 2017, 61 percent of adults
18 to 29 year olds said they primarily watched
TV through a streaming service, compared to
just 31 percent who watched cable. There’s gonna have to be
winners and losers here. So who’s going to win,
what’s going to happen to cable, and what will
happen when customers have to pay just as much, if
not more, for all their streaming services as they
would have for cable? Are we headed toward a
future where an aggregator will simply bundled
together popular streaming services, and will the cost
of that be close to the cost that people
pay for cable? And the answer to that
may very well be yes. Let’s start with
who’s doing what. Disney announced the details
of its Disney Plus platform in April of 2019,
touting all of its franchises and acquisitions
like Marvel, Star Wars, Pixar, National Geographic
and 20th Century Fox. Disney has the best chance
just because of its very, very popular content
and the money and distribution and the Disney
name it’s put it behind. That’s going to
cost customers $6.99 a month or $69.99 a year. Most recently, Disney announced
it will also be offering a bundle, including
Disney Plus, ESPN Plus, an
ad-supported Hulu. Disney Plus and the bundle
will be launching on November 12th, 2019. We’ve partnered with
the most thoughtful, accomplished, and award winning
group of creative visionaries who have ever
come together in one place. Apple announced Apple TV Plus
at a keynote in March of 2019, which
will feature original content from some of
the most prominent producers and actors like Oprah
Winfrey, Steven Spielberg, Jennifer Aniston and
Reese Witherspoon. Apple TV Plus is set to
launch in the Fall of 2019, but the price
has not been announced. HBO Max is slated to launch
its beta in late 2019 and will feature content from
a variety of assets owned by its parent
company, AT&T and Warner Media. Warner Media hasn’t
released the pricing for HBO Max, though it’s
expected to be somewhere around $15 to
$18 a month. It will offer all of
the programming you already get on HBO, which
is probably the most competitive product in terms
of quality, plus it’s going to offer you
all of the programming that lives in the
Warner Brothers universe, whether it’s Friends or DC
Comics, and then you throw in original programming
on top of that. Viacom and CBS have
held extensive merger talks which would put them in
good standing for a streaming service. This service could include
the Star Trek movies, programming from Comedy Central
and shows that currently stream on CBS
All Access, CBS’ current streaming service that already
boasts 8 million subscribers. CNBC’s parent
company, NBCUniversal, is taking a more
cable-focused approach, which makes sense as NBC is
owned by cable provider Comcast. NBCUniversal announced
the service would be free to cable customers,
and while it hasn’t announced a cost for cord
cutters, sources say it will probably be $10 or
less per month for customers without
cable subscriptions. NBCUniversal’s product will
be ad-supported. So whether you are a
cable subscriber and you get the product for free or
you are a cord cutter paying $10 a month,
that product will have advertisements in it. All of these streaming
services have created multiple bidding wars from
networks to buy back their content
from Netflix. Warner Media will spend $85
million a year for the next five years to
stream its popular sitcom Friends. NBCUniversal will shell
out $100 million a year for the next five
years to take back the rights to stream its own
show, The Office. And Disney will be pulling all
of its movies from Netflix in 2019 as it
rolls out Disney Plus. These companies will also
be creating content specifically for their
streaming services. Netflix alone spent $12
billion on original programming in 2018 and is
expected to spend even more in 2019. Very, very few companies
can match that. OK, Apple could. You know much HBO
was spending on content? It’s about $4 billion a
year, like, Netflix is actually dramatically
outspending them. Hulu and Amazon invest large
sums of money in original programming, too, and
CBS has exclusive content for its All
Access streaming service that’s not available on
CBS’ TV station, like Star Trek Discovery. You absolutely need to have
your own original or at least
exclusive content. That’s how are you going
to drive people to a director consumer product
when you offer something that you
can’t get elsewhere. Netflix has gone from
largely reselling other people’s content to
really heavily investing billions of dollars in
original content that can’t be taken
away from them. So why now? Netflix has been serving
streaming content since 2007 and introduced its
first original show, House of Cards, in 2013. It was clearly on to
something, but most content creators wanted to see if
the trend stuck around. The more successful we
were at building an on-demand subscriber base with
content, the more likely they were gonna be
to stop licensing to us, right? It’s actually one of the
reasons why we started original content in the
first place, because we believed this shift
would all happen. It’s just taken many
years longer than we thought. For several years, while
Netflix gained in valuation, the party line
among traditional media executives was, ‘this is a
flash in the pan. What we want to do
is protect the cable bundle. We don’t want to
self-imposed the destruction of this. It’s our
golden goose.’ What has happened in the
past couple years is an evolution of thinking that
the bubble in Netflix is not actually
going to burst. In fact, Netflix stock rose
over 2000 percent from the beginning of 2013
to early August 2019. Now, with streaming content
solidified in the consumer market, content
creators and media outlets all want a
piece of the pie. The more choice they get,
the less they need the traditional cable bundle. And so what we should see
is more and more people cutting the cord or
cutting traditional cable. Cord cutting, the process
of ditching cable has been on the rise. The five biggest
cable companies collectively lost 3.2 million pay TV customers in
2018, and the high volume of streaming services
could push that number even higher. All of broadcasting
is in danger. The only people who
are willing to watch commercials are people who
can’t afford to buy the goods that
are being sold. That’s an existential,
long-term issue. But it’s not lights out
for cable just yet. There are things that
cable offers that streaming services don’t. The live news, the live
sports, that’s not yet included in these streaming
services and it has kept the traditional
cable bundle alive. It’s a jolting experience
to have to navigate multiple apps on a TV,
and so high level speaking cable is a great value
proposition from a product standpoint, bringing it
all together. And because the cable
providers are also providing the internet access to
make the streaming possible, they are
at an advantage. So everyone’s talk about
cord cutting, cord shifting, cable companies,
their businesses are just going to cord shift
onto a new medium that’s that’s Internet based. ‘So even if we lose you
and we only sell you broadband internet, we don’t
care because we’re only breaking even.’ Goldman Sachs calls this
the point of indifference. Analysts are also speculating
how this will affect big players like Netflix,
Hulu and Amazon. No one’s going to compete
with Netflix and grow subscribers. I believe they
have won the game. And I think that there’s
nothing that I can see that’s going to
dislodge them. There’s gonna be a
tremendous amount of competition coming in over the
next two to three years. I wouldn’t want to
be in a position of competing against Amazon,
Apple, Disney, Comcast, AT&T. Not only could streaming cost
as much as cable, but users would also
have to navigate a complicated and segmented
landscape of products to get to the
content that they want. Do people want to sign
up for six different streaming services. Everything is going to be
behind its own silos. It’s just creating a
fragmented media world. There might even be the
potential of a company to bundle all of these
products together under one umbrella product. Everyone’s talking about Apple
TV Plus. Where I put Apple into this
fight is there Apple TV app. Everything can be
watched and aggregated through the TV app. So what are the benefits? Well, customers will get to
pick and choose what services they want to
spend their money on. Don’t care about
Disney movies? Don’t get it service. It’s that simple. Consumers will have more and
more choice on what they choose to buy. And maybe they buy
three streaming services. Maybe they buy five. Maybe they buy one. We’ll have to wait and
see how this all shakes out. But some casualties
will be expected. There are simply too
many streaming products that the entire ecosystem won’t work
with all of them. I think some will see
return and some will realize we just put a lot
of money into something maybe we shouldn’t have.

Comments (100)

  1. It’s nice to see tho the giants who own alllll these others channels- ie Disney, nbc come to the light. Really shows the consumer who runs the exposure setting you watch.

  2. Piracy is the biggest winner here.

  3. I am the one (of many) who would subscribe to multiple (3 is my Max) streaming services if it means I get to avoid ALL types of advertisements. I don't think folks rly understand at those big companies that cable is expensive, and MOST of the time I am paying thousands of dollars a year to be bombarded with commercials and less content. So if I get straight content for the same price why not "cut the cord?!"

  4. Hello streaming bubble

  5. Netflix is a truly global content producer and provider. Disney, Hulu, Apple, NBC are actually managed to appeal to the US only, produce predictable US-Centric brainless ethnocentric rehashes of the same overhyped stories that the rest of the world are sick of hearing/watching, especially with the soft power disaster that is Trump. These companies will be hard pressed to pump out the same volume of content globally as Netflix. They may be attractive to 350M Americans, Netflix is set to be attractive to 5+ billion people of earth (minus China). Netflix create loads of content focused on specific non-US cultures, and some of their non-US shows are breaking records outside of the US and non-US folks are subscribing to Netflix at increasing rates. It is easy to foresee a future where US subscribers will be a minority for Netflix. Netflix will be fine!

  6. Good, competition is good.

  7. O wow what a powerful combination but windows will have game streaming soon that may be a more solid key point keeping them more relevant for a while even so

  8. fear not, you can always pirate.

  9. Cable companies are greedy point blank i just need the internet point-blank thanks to Sling TV

  10. At least I have Tubi…and it's FREE.

  11. Lmao they are really helping pirating.

  12. If one has to watch got and friends, do you expect them to subscribe for both hbo and disney. It's absurd

  13. I already have everything for free and I don't pay nothing lol nothing new to me

  14. Disney world create the shittiest movies and put them on the fake Netflix that they’re going to create to try to get money off people.

  15. The sole purpose of having Netflix is cos it’s 1. Convenient 2. Vast contents 3. Simple to browse 4. Great price. If most copyrighteds were taken away from it then it will just make streaming complicated and inconvenient to use.

  16. indoxxi must be laughing at these guys

  17. How can I get internet without Comcast?

  18. being an actor right now must be great

  19. Streaming costs will soon be the same or more as a Blockbuster membership was. Also everyone forgets that Netflix content is made all over the world.

  20. I watch streaming because I got sick of being bombarded by advertisements on Cable Tv. It's seemed like I was watching more commercial than actual show. Just got sick of it.

  21. Answer, Free TV, free, free, free, let advertisers pay.

  22. i ditched cable because of the cost and now to stream movies its going to cost more than cable ever did. 10+ for hulu, 10+ for netflix, 6-10+ for all these startups..

  23. lol, I only watch youtube




  27. Yeah cause Disney is definitely going to make a bunch of mature rated content for adults that don’t watch children cartoons lol Disney services going to bomb hard

  28. And they expect everyone to buy every one?

  29. HBO Max is for middle aged people / OG's

    Disney is for young adults and milennials /the Lil's

    Netflix has stuff for all age brackets

    Netflix for the win ??

  30. We will use torrent

  31. Netfix needs a serious stock adjustment.

  32. YouTubeTV has my local channels and unlimited cloud DVR on all my devices. I just switch off my cable and I am saving $30 a month.

  33. Still just a vast wasteland.

  34. Thank God I live in India!! I get all the content on satellite cable for 450 Indian Rupees (6-7 US Dollars) per month and Amazon Prime Video content for 999 Rupees thats 14 US dollars per year

  35. This just makes Piracy more attractive. Not cuz of price but cuz of simplicity.

  36. 3-4 years down the line we will know who would have won the streaming wars. I don’t see more than 3 companies surviving.

  37. piratebay : hold my beer

  38. why is Amazon's Prime Video being left out?

  39. There are already too many streaming services out there as it is, all the Anime studios have their own streaming services (Funimation, Sentai Filmworks), theres also Amazon Prime, Hulu, Netflix, Crunchyroll, Disney, CBS, NBC, and tons of other illegal streaming services too.

  40. Let's see how it will go. I have Netflix subbed and Amazon Prime Subbed. Anything that is not on these platforms will be available somewhere else. You know where.

  41. Well in India, JIOTV already built that ecosystem where Tv can be watched wirelessly.
    And then comes Hotstar.
    I think live streaming should be new game changer rather than fragmented media.

  42. I get it. Netflix finally kicked off this trend with all you can eat for around $10a month. But ya as everyone throws their hat in the game we aren’t going to want to subscribe to ten different services. (I WILL NOT). So how about charge me per episode. Not dollars but cents. I can watch any service I want and just pay for the content I consume. That’s the real winning business model. Otherwise as lot of companies are really going to have a hard time competing for the $30-40 a month TOTAL that people like me are willing to shell out for streaming services.

  43. is the GOAT

  44. What they are forgetting is that a la carte means choice. You don't have to get the bundle. There is so much content these days all you really need is two good services and with that you won't have enough time to watch all the shows you have access too. My List in Netflix is long as hell b/c I can't get through it fast enough before they put good new stuff on there. The key is knowing what you like to watch. I like movies with black folk, sci-fi, superheroes, anime, and my wife likes comedy and dramas. So for me Netflix, Hulu and Disney+ should cover all of that. Hulu and Disney will be bundled for 12.99 with ESPN to boot. Throw Netflix on top of that for another 13 and you are still only at around $23 per month. Sucks to choose I know, I haven't seen 'The Boys' but eventually I will. Its worth the sacrifice to maintain a sound budget while still accessing a plethora of content.

  45. I don’t pay nothing to stream

  46. I don't care about the streaming wars. The only thing that will increase is piracy.

  47. This model (streaming that is) will only make a real impact in western markets like the US. In developing markets where satellite TV is seen as affluent, broadband and data prices are scarce & expensive, and locally produced content is non-existant – streaming services will make less sense.

    Piracy will definitely be the method of choice, especially in the age of free and direct content from the likes of YouTube and social media.

  48. It’s gonna be so hard to decide what streaming service to purchase with all the shows I like now spread out. Netflix might be at risk….

  49. Now I’m just wondering what’s gonna be streaming on Netflix

  50. Hello piracy again, I missed you!

  51. Following Net Neutrality laws (or lack of them) make sure your streaming service aligns with your internet provider.

  52. Idk. If Netflix doesn’t grandfather their prices to original clientele, might lose them.

  53. That's good for them, but I have a subscription plan with piratebay and I highly doubt they can beat their prices and quality.

  54. 2020 will truly be a test for this industry. All 3 services will be launched in full force. But the question is – who will come out on top?

  55. Even theaters gonna die. All these must offer their movies first on their streaming service. Or else no one gonna buy those high priced subscription.

  56. Who gives a s*** stop watching TV and go plant a tree or something.

  57. More importantly Disney owns ESPN. Case closed. They win. But they shouldn't get any larger.

  58. Pluto TV!! All the way!

  59. Pluto TV IS FREE BABY!!! Yes there is commercial but also with any other provider.

  60. On Netflix, my family and I are waiting for “Lost in Space” to come back!!! Oh and I cut off “Spectrum” cable the largest package available believe it or not just cause I realized that I was paying too too much once I learned there was a lot of cheaper and free content. I feel like I was paying 20 times more than what I should have for television entertainment!

  61. HBO max, Disney plus, Netflix, Funimation. I’m good with that. Lots of choices for consumers and people can cancel and reactivate whenever they want.

  62. Don't matter where the are BOYCOTT DISNEY!!!! they cook their books to make their shows look more popular&push their "feminist" politcal protocols in their movies&parks&treat their regular employees like crap…. TO HELL WITH DISNEY!!!! Considering they also control around 50% of the news services also who is helping promote "fake news" they are not the "magic kingdom" anymore,they are the programers of the public for the left&demosocilists pushing their views on everyone

  63. NBC and CBS will flop hard. I only see Netflix, Disney Plus, Hulu and Amazon prime surviving along with HBO streaming services. People wont be paying for CBS or NBC content that also had ads and Apple TV plus will flop. Consumers will pay only for select streaming services that already are established or have lots of contents. I will only pay for Netflix because of its originals and Disney plus because of exclusive marvel contents and movies.

  64. Honestly, there's so much free content out there with just an OTA antenna (free sports, national & local news, shows, etc) and Youtube (unlimited amount of free content) I could honestly live without Netflix or any other streaming app, besides most of Netflix is garbage anyway.

  65. I wish Disney would let it's entire Disney motion picture archives available for everyone to enjoy along with new content but it's not ready yet. Also, Disney and Sony should settle there differences and let Spiderman rejoin the MCU again. #SaveSpiderman #SaveDisneyMotionPictureArchiveandTheVault #disneyplus

  66. There will be blood

  67. The universal apps with all content already exist on Android TV boxes…..not very legal, but it is there.

  68. Back To Piracy! is always the first thing that comes to mind whenever I listen to stories like this…

    Kinda funny… I've never been as productive since I stopped watching TV and started curating my own media via YouTube and Netflix, the latter which I've already unsubscribed from after just 6 months when they raised their prices and I myself noticed the fragmentation discussed in this video… I'm now back to watching less in general ( which, I guess, is kinda a plus ) and pirating what I'm REALLY interested in.

  69. I’ll stick with Netflix and Disney + I don’t have amazon prime because I rarely order from amazon. HBO , Comcast , cbs, Apple TV can all go f themselves

  70. The people that are skeptical about steaming are thinking way too small. You can navigate because you choose to have it. For me, Netflix and Prime Video are fixed subscriptions while HBO and CBS All Access are seasonal subscriptions. My HBO subscription is been off since GOT ended, so we'll learn to navigate for what we want, not for what cable bundle up put us through. "Millenial thinking"

  71. I'm hoping Disney won't succeed since they will probably ask for an insane amount of money for their service

  72. You ho ho and a bottle of rum, go pirate and give your middle finger to these streaming sites.

  73. and streaming has not been getting more competitive it just getting broke up like old cable channels, which is not good for consumers, if companies actually had to compete instead of monopolizing their content that would actually be good for the consumer. Breaking up content into 100 different streaming sites does not help and it only promotes piracy.

  74. Disney wins! Pwnage no doubt

  75. As Africans we were enjoying our quiet little movie download on pirate bay since western people were no longer doing it and now the pressure is up again.

  76. We're gonna all end up paying seperately for any channel we want?‍♂️

  77. How come no one talks about how people are going back to piracy.

  78. Torrent users be like "meh"

  79. Even if that is the case. Satellite or cable will never have the same versatility and convenience that online streaming services provide. That is why we prefer streaming services! On demand. When we want. How we want. And we can cancel or renew on the instant. No overpriced set ups or installations. They forgot to realized that. Most people will just get whatever is mor convenient to them. Period. Some yea will get them all.

  80. Just subscribe to every thing but Netflix, solved.

  81. I get the live news and live sports on Hulu with live tv so HA

  82. This will be a period of opportunities for more writers and actors to have jobs. While it lasts, they should size this great opportunity

  83. Netflix is capable of $120bn market so they are here to stay

  84. Are Ya Ready Kids?

  85. Netflix investing billions , anybody seeing anything different from the content selection ? i don’t , except for a bunch of foreign movies , poor content targeting, extremely long time to get a good new movie and no reinvestment in some of their original content , it’s been a year .

  86. Owning 4 or 5 streaming services is already more expensive than cable…

  87. Too much streaming subscription

  88. Hoping HBO max has all the Christopher Nolan collections.

  89. Their making piracy great again.

  90. 123movies premium is easier HAHAHA

  91. wow we are going back in time….let me give you guys a good tip….GET A FIRESTICK.

  92. something something piracy

  93. I think Netflix still will be the winner of the streaming wars. Disney Plus and Apple TV Plus is going to fight for the second place

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