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Disney + will be the biggest competition Netflix has seen since Amazon Prime. Disney's strategy, however, seems quite simple: capture Netflix in a pincer maneuver. Disney + will offer family-friendly educational and family-friendly content, while Hulu, like Buena Vista and Miramax before it, will become Disney's repository for content they do not want to have their name on. Disney hopes to reach around 90 million subscribers by 2024, a cautious goal given the current number of Netflix, which stands at 139 million.
Now, Netflix has an intrinsic value to the brand, and its name alone has become a euphemism for a way to spend an evening. But it's not at the same level as Disney – a studio and institution that has existed for most of the last century
Beyond the name of the name, Disney has a number of characters loved, from Mickey Mouse to Anna and Elsa, through third-party studios, from Marvel to Lucasfilm, who have their own dedicated global fanbases.
In addition, Disney told investors this week that he had committed to losing money on Disney + until 2024. Now, Netflix is profitable and has earned 133.9 millions of dollars in the last quarter, but it does not have the financial strength to fight Disney at war. d & # 39; attrition.
Netflix is only profitable if you ignore the $ 10.4 billion debt it has accumulated to buy the lavish TV shows and movies it presents. When this debt matures, Netflix will have to become much larger or withdraw more money from existing users.
With $ 21 billion, Disney's debt is more than double that of Netflix, but the first is a super conglomerate. If Disney films go through a difficult period, it will be able to rely on its theme parks, sports centers and marketing centers to help it. To put the financial strength of Disney into perspective, only its video and derivative products division more money ($ 1.7 billion) in 2017 compared to Netflix for all of 2018 ($ 1.6 billion).
With all of its purchases, Netflix's tendency to buy higher-end TV shows with little sustainability can also become a problem. Ampere Analysis found that the average broadcast on all streaming services was removed after only two seasons, compared to six or seven on traditional networks. That said, Netflix also shows how much it can be compared to sclerotic broadcast networks.
Maybe nobody will be too upset when Disney content is extracted from Netflix, since Avengers: war in the infinite will not leave until 2020. And only 20 Disney brand titles are currently listed to be removed from a catalog that contains content for several years. Disney +, on the other hand, will contain all its animated and live action films that have not been erased from its history.
Will people go on another streaming platform without thinking about what they already pay? Netflix is already a default broadcast option for so many people and some people may feel they can not eliminate it. Unfortunately, the promise to cut the cord has turned into an endless pile of services, all looking for a piece of your wallet.
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