Disney Aims For Content Exclusivity


Disney CEO Bob Iger
Disney CEO Bob Iger

As our age of technology grows, the number of media houses launching their stand alone digital streaming services grow with it. Disney announced their plans for their own streaming service recently, and last week, confirmed that the LucasFilms Universe would also be streaming exclusively through them. According to Variety, Disney CEO Bob Iger announced that they would gradually pull all content under the Disney umbrella from Netflix, once their streaming service was fully launched in late 2019. This includes their own original content, the MCU films and Star Wars. In response, Netflix successfully poached ABC show creator Shonda Rhimes for an exclusive deal. This decision has caused investors to share their concern, causing them to fall back, and Disney stocks took a 4% dive.

Business Insider also reported that in order for Disney to even break even on their investment, they would have to gain around 32 million subscriptions at 9 dollars a month. Disney as a company is already a big draw, both because of faithful fans over many generations, and their content, which has been consistently well rounded. However, will this be enough to draw in 32 million? In addition to already released content and feature films, they plan on releasing 5 to 10 original movies and series a year once the service is operational.

Streaming Services: Pros and Cons

Disney will be pulling their content off Netflix
Disney will be pulling their content off Netflix

Digital streaming availability has increased dramatically over the last 5 years as cable channels launch their own stand alone services in order to keep up with the increase of consumers turning to digital video for their entertainment. As of this year, Starz, HBO, and Showtime have fully launched stand alone subscriptions, and some have partnered with Hulu or Amazon Prime. The pro is that these channels have the potential to retain their consumer loyalties especially with channel originals, a tactic that has served well for HBO. The cons are the cost to consumers. The majority of digital consumers may be forced to choose between services based on their interests, so the probability of a service being dropped after a couple of months is high. Netflix has been in this for several years and just hit the 100 million mark. HBO Now and CBS hit 3.5 million and 4 million respectively.  It is entirely possible for this media group to hit their mark and compete with existing companies, but it will be an uphill climb. What are your thoughts? Tell us in the comments!

Credit: Variety, Business Insider. 

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