Monday, October 2, 2017

The End of Disney on Netflix

Disney has finally decided to scrap Netflix by taking all of their content off of the streaming service. This surprised some as to why a historic mega company would look to abandon the leading digital streaming service. But this is starting to become a popular trend among companies.

Most cable providers have started to offer streaming services through their own websites. It even breaks down further by TV channels. Both FX and AMC Networks offer commercial-free streaming for series from all of their catalog. No longer do these companies have to sell their content to third-party streaming services in hopes of keeping up with the current digital trend.

Disney looks to increase both their profit margins and branding through their own streaming service that they plan to launch sometime in 2019. It makes sense for Disney, especially since Netflix uses Disney titles to help promote Netlifx original series.

Some may say that this is a major blow to Netflix, but they have been staying ahead of the ball by creating a strong catalog of original content. Emmy nominated shows House of Cards, Narcos, Orange Is the New Black, and Stranger Things have positioned the company to be able to withstand blows like losing Disney. The only real concern that investors may have is the jaw-dropping $20.54 billion dollars Netflix currently has, but most seem to believe that the debt will go away within the next couple of years.

Usually, when a major deal like this falls through, there is a winner and a loser. I don't see that right now as Netflix continues to dominate digital streaming services and Disney is Disney. ESPN has been dragging down Disney and this potential streaming service may be a way to help recoup lost revenue brought on by that. If I had to pick a winner in this breakup, I would give Disney the slight advantage because they are already so large. This should only be a small setback as Netflix continues its reign over streaming services.

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