[ad_1]
Netflix has taken the lead in streaming to 190 markets, but is now facing rivals such as Apple and Disney.
Some of the biggest names in media and technology are preparing to switch to streaming, which could be a major challenge for the market leader, Netflix.
Apple is expected to announce its decision on March 25 in the media, with a treasure trove of war estimated at about a billion dollars and partners such as Jennifer Aniston and director J.J. Abrams involved in the content.
Walt Disney Co. has announced the launch of its new streaming service, Disney +, as well as that of WarnerMedia, AT & T's new multimedia entertainment division.
Newcomers, with more expectations, could launch a formidable challenge for Netflix, which has some 140 million paid subscribers in 190 markets, as well as other services such as Amazon and Hulu.
"It's really going to change the industry," said Alan Wolk, co-founder of the consulting firm TVREV, which follows the sector.
Wolk said he saw seven or eight powerful players streaming, which would result in "huge competition for new shows and hit series."
These competitors are entering the segment transformed by the spectacular growth of Netflix and the growing consumer movement towards on-demand television broadcast on Internet platforms.
In the United States alone, an estimated six million consumers have dropped pay-TV offerings since 2012, while on-demand services such as Netflix, Hulu and Amazon have increased, according to Leichtman Research.
But just as Netflix has disrupted traditional "linear" television, competitors are now competing to disrupt Netflix.
Name Recognition and Content Wanted to Make Disney a Great Competitor for Video Streaming
Feel pain
Netflix is likely to suffer not only from new competitors, but also from the loss of content from the big libraries of Disney and Time Warner.
These Hollywood companies "have large libraries, so the cost of their content is much lower than that of Netflix, which has to pay for all of its content," said Laura Martin, an badyst at research firm Needham & Co.
"Netflix will lose subscribers to these new entrants," Martin said.
AT & T's WarnerMedia will launch its service later this year, which combines the content of its premium HBO (known as "Game of Thrones") and the extensive Time Warner library or movies and shows.
The Disney service will feature films and television shows, as well as the library that it acquires from Rupert Murdoch's 21st Century Fox, an agreement ending in the coming days. This includes the "Star Wars" and Marvel Superhero franchises, as well as the ABC television content.
JP Morgan badyst, Alexia Quadrani, predicts that Disney will eventually reach a size comparable to that of Netflix or even more by signing 45 million US subscribers and 115 million internationally.
Quadrani cited "the unparalleled recognition of the Disney brand, its comprehensive premium content and unprecedented ecosystem to market the service."
The badyst said Disney was leveraging its global ecosystem, which developed good customer relationships through theme parks, hotels, cruises and consumer products.
Jennifer Aniston is one of the Hollywood stars on which Apple counts before launching its video streaming service
Wolk acknowledged that Disney "feels good" because of its strong brand and content, but predicted that consumers could be overwhelmed by growing options.
"I think there will be a lot of turnover," Wolk said. "People will subscribe to a service to watch one show, then it becomes easy to cancel and take another one."
Do not panic for the moment
Some badysts say that Netflix has no reason to panic, not yet.
"Netflix has discovered this business, they know what consumers want," said Dan Rayburn, Continuous Media Analyst at Frost & Sullivan.
But Rayburn added that over time, rivals could exploit their user base and infrastructure to negate the benefits of Netflix.
"What does Netflix have? Nothing," Rayburn said.
"If you are Amazon or AT & T, you can give this product and be a leader in claims, it's a great value."
Nevertheless, he added, any company that wants to challenge Netflix must be "fast and agile" and it remains to be seen if traditional players can do it.
AT & T's Warner Media streaming service will include HBO programs such as "Game Of Thrones," whose star Emilia Clarke is featured here.
Richard Greenfield of BTIG Research also questioned the ability of traditional entertainment companies to compete in the new media world.
"We believe that mainstream media have missed their time to compete with Netflix (and other technology platforms) unless they really want to play hard," Greenfield said in a recent research note. .
"Dilemma of the innovator"
Greenfield said it meant moving the box office's attention and getting better control of the content.
"Disney is fighting the dilemma of a clbadic innovator who prevents them from truly turning to the direct consumer, not to mention the fact that, like other mainstream media, they do not really understand how much technology is essential to success of the direct treatment to the consumer consumption in streaming ", wrote Greenfield.
Daniel Ives of Wedbush Securities said that Apple could be the joker, but that the iPhone maker might need to appeal to a content provider such as CBS or Sony Pictures to become a major player.
Apple "definitely plays behind the ball in this race for content with Netflix, Amazon, Disney, Hulu and AT & T / Time Warner, all attacking this new frontier," Ives said in a note addressed to customers.
"Although the acquisitions are not part of Apple's main DNA, we believe that Cupertino has sounded the hour of midnight and create content in an organic way is a slow and arduous path, what which highlights the obvious need for Apple to achieve larger and more strategic "contracts".
Explore further:
AT & T will launch a streaming service, the latest to counter Netflix
Source link
