The End Of The Cable Bundle

[Tugg Speedman]

As the story says, Disney set off a sonic boom announcing it will pull all its content off Netflix and start its own streaming service.  Also coming is a sports streaming service too.

Interestingly, the stock market responded by crushing both Disney and Netflix's stocks. DISH was also sold off on the news. Wall Street initial reaction is all will lose.  Comcast was a winner, as it has content (NBC) and can continue selling internet subscriptions instead of video subscriptions.

Do we really want to pay dozens of different streaming services, even if some are less than $1/month, and spend all that time managing these services?  Or was the current model better with a few aggregators like Netflix and Hulu?

Good Idea By Disney?
Is this the beginning of the end for cable and Sat?
Additional Thoughts?

I agree with the market reaction, Disney is needlessly complicating the streaming world.  Imagine in the early days of TV (1950s) you had to buy a different TV for every channel?  Sounds like Disney is doing the digital version of this.


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With Disney’s Move to Streaming, a New Era Begins
https://www.nytimes.com/2017/08/09/business/media/with-disneys-move-to-streaming-a-new-era-begins.html

Disney set off a sonic boom in Hollywood by unveiling plans to start two Netflix-style services: For the first time in the streaming age, the world’s largest media company had decided that embracing a new business model was more important than clinging to its existing one.

Disney’s decision to better align itself with consumer trends — deemed “a rare and impressive pivot” by RBC Capital Markets — instantly reverberated through the entertainment industry. Disney’s cable channels, which include ESPN, have long been seen as the reason many viewers were refraining from cutting the cord entirely. If Disney was going all in on streaming, the impact would be felt by almost every television company and cable operator.

As part of its announcement on Tuesday, Disney said that it would spend heavily on original programming for its entertainment streaming service and pull future Disney and Pixar movies from Netflix. That sent Netflix shares downward. The question seemed to be, how would Netflix, even with its head start in terms of audience and reach, manage without the mighty mouse? And would Disney’s plunge into streaming encourage the likes of Discovery and Viacom to do the same, intensifying competition?

[#UnleashSean]

If Disney thinks they will get people to drop Netflix for only Disney stuff. 

[reinko]

If Disney thinks they will get people to drop Netflix for only Disney stuff. 

They aren't, they want Netflix customers to pony up an extra $9/month to pay them for Disney, Marvel, and Star Wars films/cartoons.

Netflix has 100 million subscribers, so using VERY rough #'s, if Disney can convert and/or add 5% of that, plus some new customers, say @ $7/month equals $35-$50 mil in cash flow a month...and since they own all the content (since licensing fees which is one of the most expensive thing keeping Netflix from being profitable), their profit margins should be much greater than Netflix.  Now, original content, yes...it becomes more expensive, but kids & family shows/cartoons (which I imagine the vast majority of their programming would be) are much cheaper to make versus HBO, original Netflix or Amazon content.

Curious around exclusive Marvel context on Netflix like Luke Cage, Daredevil, JJ...hmmm

[brewcity77]

Disney said the Marvel shows will be staying on Netflix. Guessing that's part of the original terms.

Anyone that thinks Disney will be some juggernaut on their own is sadly delusional. Certainly not at Netflix/Hulu prices. 200 movies and mostly kids shows just isn't enough content.