Can Disney Plus Dominate Netflix?

April 24, 2019

We talked last week about the fact that Disney came out with their own streaming service and within one day their market value went up $23 billion. On the flip side, Netflix lost something like $7 billion! That’s a pretty big upset in the industry I’d say.

 

I believe it’s a good thing, though, because it means there’s competition and that is always a good thing in business. It gives consumers choice and stretches companies to improve on their product and services.

 

Is there a guess as to who’s going to win this battle? Let’s see…

 

Netflix Originals are ridiculously popular, like Stranger Things, On My Block, Trailer Park boys - and they won’t necessarily go away. Netflix will have an audience no matter what. They also make sure they cater to their customers and are known for going above and beyond.

 

Disney is also known for creating an experience. They will have exclusive rights for their programs and are putting a billion dollars into creating their streaming service. If they are looking to create Mature shows, they would have the potential to beat out Netflix but if they are sticking with PG13 and under, absolutely not.

 

Disney owns Marvel, so if those movies become available on their streaming somewhere, that will be an ace for them. Right now Disney is cheaper, but that’s how new competition usually starts to win people over. If they produce Disney originals that only appear on their streaming service, that will draw people in as well.

 

Does it even matter? Not really, because the consumer always wins. If you take a look at Hulu, Amazon video, Crave, any current streaming service - Netflix still dominates because they want to stay on top and work hard to create the best experience for their customers.

 

My prediction is that Netflix will dominate their PG13 and over audience and Disney will dominate PG13 and under and kids tv shows.

 

But again, because we’re a capitalistic society, the consumer will always be the ones who win out. Disruption creates new industry standards. With new options like Air B‘nB or Uber, they have caused entire industries to take notice and be better, do better.

 

As much as people want to hate on capitalism, if we took it out, people would be miserable. Without capitalism, there is no competition so then there would be no reason to improve or provide a ‘better’ product. If there’s no reason to expand past that, why would we bother?

 

I love when people go out of business simply because it means capitalism is at work and it means that products are being improved upon. If you look at iconic stores like Sears or Toys R Us, a lot of their downfall has to do with their marketing and business models. Blockbuster did not advance with technology and go digital so they ended up out of business too.

 

HMV is another prime example. They were really late to the game, putting millions into building a streaming service, and as soon as it didn’t do well they dropped it and ended up closing their Canadian stores.

 

Lack of foresight really knocks a company out of the competitive stream and in this day and age, it’s important to be aware of what’s next, what’s coming and find ways to jump on that bandwagon.

 

Another Sear’s example - their catalog - expensive to produce and outdated in the current market. Also, when the majority of a marketing budget is designated for tv ads, you are missing out on where the majority of the people are - on their devices. It might have worked in the past but not since we’ve become glued to our phones in recent years. They were basically throwing away money. Imagine if they put their TV ad budget into Facebook!

 

As soon as Fortune 500 companies realized that tv ads weren’t working anymore, they changed their tactics to stay current, and that’s what every business has to do. Stay on trend, find out what’s working, be open to trying things and doing business differently.

 

As the saying goes, just because it worked 30 years ago, doesn’t mean it works now. Disney and Netflix clearly have this figured out!


Author: Josiah Merta

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