The streaming market is crowded. You could compare it to a Walmart on Black Friday; if you’re late to the store opening, you have to wait in line, outside in the cold!
Most companies that are coming into the streaming market late are aware that they may feel the pain of waiting in line. Disney, however, is ready to spend their way to the beginning of the line.
Disney, the powerhouse of content that it is, understands it is important that your audience has just that, content! Needless to say, we can expect Disney + to be filled with original content. However, funding original content, takes billions to do that. Lucky for Disney, their CEO Bob Iger, knows that. “Since we are betting on this DTC business long term, we obviously have to fuel it with intellectual property,” Bob Iger was quoted saying to Adexchanger.
The launch of Disney+ will cost Disney $150 million. The costly spend is due to the fact that they will no longer be licensing content to its competition, such as Netflix. Half a dozen Marvel shows have been pulled off Netflix’s platform in the past few months. For example, Daredevil, Iron Fist, Jessica Jones, and The Punisher have all disappeared. For the reason that they are patiently waiting for their debut on Disney+.
As movie studios, such as Disney and WarnerMedia come into the market, how will this competition affect the current contenders in the market?
For example, Netflix will lose 20 percent of its total content library in terms of programming hours, according to Ampere Analysis data. The big players are coming into the game. To win the game, doesn’t necessarily mean they have to be bigger and better than Netflix. They could win by taking their rightful share away from the giant.