Will Netflix continue to broadcast higher with Disney and Apple behind the scenes? – Silicon Valley

As for the streaming television sector, one could say that there is Netflix and everyone else.

Based solely on the number of subscribers, Netflix can make its case. Netflix ended the year 2018 with 139.3 million paying subscribers worldwide, including 58.5 million in the United States. In contrast, Amazon does not disclose subscriber figures for its Prime service, which includes access to Prime Video programming. Hulu said in January to have 25 million paying subscribers.

As part of its efforts to remain the king of the mountain of streaming television, Netflix has not hesitated to spend lavishly to acquire new content. The company has allocated $ 12.04 billion in 2018 to purchase and produce securities for its service, an amount that exceeds $ 8.9 billion spent in 2017.

Despite these expenses, his dominance in the mood of the public and his three Oscars for the original movie "Roma", Netflix is ​​under attack. And the way it is responding to the efforts of two of the largest companies in the technology and media sector can prove that it will be able to maintain its position at the top of the TV channel in the years to come.

Netflix may soon have a glimpse of what a potential rival has in mind when Apple hosts an event on March 25 at the Steve Jobs Theater from its Cupertino headquarters. Earlier this week, Apple sent out media invitations about the event and, as it usually does, the company did not deliver on its promises.

"This is the time of the show," read the invitation, which contained no other information except the day, time and place of the day. event. A request made to Apple for more information on what was available was sent back.

But this statement about "show time" – as opposed to "show time" – was enough for some Apple badysts to think that the company might finally be on the cusp to do more to delve further into the streaming TV industry and launch a slate of subscription programs that match its growing importance for services as a revenue engine.

"Apple has always said that its strategy is to deliver engaging and targeted content, and that multiple streaming services can co-exist," UBS badyst Tim Arcuri said in a research note. "We believe that Apple could also set up a subscription service to (Apple) News and potentially to the games this year."

If Apple wants to coexist with a subscription streaming service, it will have to charge it with at least a respectable amount of content. Until now, the most famous original series of Apple have been 'Carpool Karaoke' and 'Planet of the Apps'. None of these series has generated the same craze, or even recognition, as broadcasts like Netflix's "Stranger Things." "Narcos" or even "The Kominsky Method", which recently won the Golden Globes for the best musical or humorous TV series and the lead actor in this category for star Michael Douglas.

Apple has several projects in preparation, including "On the Rocks", an original feature film directed by Sofia Coppola and starring Bill Murray; a biography series on the CIA that would feature "Captain Marvel" herself, Brie Larson; and drama on a morning television show including Reese Witherspoon, Jennifer Aniston and Steve Carrell.

"It would be a tremendous potential force for Apple," said Dan Ives, managing director of equity research at Wedbush Securities. "At the end of the day, we think Cook & Co. (Apple's general manager) must now seriously tackle larger content acquisitions."

Ives also believes that since Apple already has an installed base of 1.4 billion iOS device users, the company "could potentially reach 100 million." Subscribers in three years ".

Netflix will certainly add more subscribers in the same period (the company expects to earn nearly 9 million paid subscribers, to reach more than 148 million in the first quarter of this year), but it may not be able to match the potential growth rate of the number of Apple subscribers. .

Then there is the Disney case.

The Mickey Mouse House is scheduled to hold its annual investor meeting on April 11 and should include an update of its plans for its upcoming Disney + streaming service, including the planned launch date later this year and the cost , the month. With a library of all Disney brand titles, movies from Pixar and Marvel Studios, and the Star Wars movie franchise, it's no exaggeration that Disney + includes at least some of this content in its content. a service.

Netflix currently serves as a repository for many of Disney's newest titles. "Star Wars Episode VIII: The Last Jedi" is here. The same goes for Marvel's "Black Panther", Disney-Pixar's "The Incredibles 2" animated film and "Disney's Pirates of the Caribbean: The Dead Do not Tell Stories". Even when Disney launches Disney +, not all titles of this company will disappear immediately Netflix, since the content contracts between companies include the completion of some Disney movies on Netflix until the end of 2020 or the beginning of 2021.

But, as it's Disney, the amount of content under control allows it to accurately choose what it brings to Disney + and what prevents streaming to Netflix or other services.

"Disney's service will be more modest in price and content than Netflix, but we believe that the quality of the content will be the differentiator," said J.P. Morgan badyst Alexia Quadrani. She added that although no launch date has yet been given for Disney +, she thinks the service "remains on the shortlist of products (streaming) that should prevail in the long run ". Quarani also estimates that Disney + could reach 160 million total subscribers worldwide. .

Although Netflix will wait for some time before Disney's programs disappear, badysts believe that the company must tackle the problem now or jeopardize its position in the market.