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Until last year, Netflix (NFLX) dominated the SVOD (subscription video on demand) of the streaming services market. He was a leader with few competitors, unparalleled content and a global subscriber base of more than 150 million. The company experienced strong growth between 2013 and the summer of 2018. The stock has increased by about 2500%, from $ 14.0 in January 2013 to $ 374 in September 2018.
Netflix is not alone in the world of streaming
Excessive growth does not last long, as it attracts new competition. That's exactly what's happening with Netflix. Since October 2018, the stock has fallen by 27.6%. Negative cash flow has increased due to higher spending on the development of original content.
The SVOD market will become more complicated as wealthy entertainment companies and telecommunications companies with a large subscriber base enter the space. Disney (DIS) and Apple (AAPL) are launching their own ad-free streaming services, Disney + and Apple TV +, in November. Comcast's NBCUniversal (CMCSA) and AT & T (T) 's Warner Media launch their Peacock and HBO Max streaming services in the second quarter of 2020. These upcoming launches have made "streaming" the new slogan .
Netflix CEO – a all new world of streaming
According to Reuters, at a conference hosted by the Royal Television Society in the UK, Netflix CEO Reed Hastings defined the upcoming competition as "a whole new world starting in November". This new world is a treadmill for viewers, content developers and streaming. Peripheral providers like Roku. But it will be a difficult world for broadcast companies such as Netflix, Hulu and Amazon Prime Video.
Apple TV + will offer all original premium content at the lowest price. Disney + will feature Disney, Pixar, Marvel, Star Wars and National Geographic content. WarnerMedia's streaming service, HBO Max, will bring all of the original content of HBO Now and HBO Go. In addition, it will create its own original content and also bring popular content from Warner Bros., CNN, comedy CBS, Cartoon Network, etc. He will propose the complete series of "Friends" and "The Big Band Theory".
NBCUniversal's Peacock streaming service will offer more than 15,000 hours of content. The content will include old popular content such as "Jurassic Park" and "The Office". It will also contain new content created by the creators of "The Good Place" and "Mr. Robot. "And the platform will contain content on topics such as news, sports, night shows and reality shows, including" The Tonight Show with Jimmy Fallon "and" Dateline ".
Apple TV + has the lowest price for premium content
A MarketWatch article told B.J. Pichman, head of research at Comperemedia, about the growing competition in streaming services. He listed the pros and cons of different streaming services that will all be available in November.
He noted that Apple TV + had the advantage of the lowest price and premium content. However, it lacks a back catalog that encourages over-observation. It will take time for Apple to build its media library. On the other hand, Disney +, Hulu, Netflix and HBO feature a rich media library with a large amount of popular content available for burst viewing. These services will compete in the type of content they offer and the prices they offer.
Hulu, Netflix and HBO compete for the best content selection
Pichman said that Hulu had the advantage of popular TV programs such as "Family Guy" and "30 Rock", as well as current programs in prime time. But Hulu has ads in its basic plan and less original content, which could put off some viewers. On the other hand, Disney + has a rich library of content aimed at families and children in particular. But it does not have all types of content. It is here that Netflix and HBO have an advantage. They offer a variety of content for all, old and popular old TV programs. But Netflix and HBO services are expensive.
Competition will intensify further in April 2020 when Peacock and HBO Max arrive on the market. They will benefit from rich content and a broad subscriber base from their parent companies Comcast and AT & T. NBCUniversal would offer a version of Peacock to ad-supported Comcast cable subscribers with a pay-per-view service option. The main disadvantage will be their late arrival on an already crowded SVOD market.
The spectators are the king
The MarketWatch article stated that, according to experts, most families had a monthly budget of $ 50 for up to three streaming services. Each streaming service offering a different kind of content, all comes down to what consumers want to watch and what they want to pay.
In an interview with Variety, the CEO of Netflix said that the growing competition would give viewers "a lot of choice". He also said that the TV market would not be concentrated in the hands of some big media giants. He gave the example of his own company, claiming that he had managed to earn "about 5% only hours of television viewing". This will become more difficult for Netflix, which has lost 130,000 US subscribers and reported stagnant growth in the number of international subscribers in the month of June.
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