Disney and Netflix are about to fight over the kids

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Over the past few years, Netflix has invested heavily in original movies and TV shows which are available exclusively on Netflix. This content works to attract new customers who want to find out what the House of Cards hype is all about. And it makes existing Netflix subscribers less likely to cancel the service since they would then be unable to access Netflix-exclusive content.

But even as Netflix is building up a repertoire of hit movies and TV shows, it still relies heavily on licensed content from other companies. And one of those companies is going rogue: the Walt Disney Co., which also covers ESPN and ABC networks under its umbrella.

Earlier this week, Disney announced that starting in 2019 it would no longer license Disney content to Netflix. Instead, Disney will form a new streaming subscription service. Disney will also create a service which will include streaming access to ESPN.

But don’t cancel your Netflix subscription just yet — Disney’s jump is still a couple years off after all. Netflix says that through 2019 its subscribers will continue to have access to Disney movies and TV shows. And until the end of 2018, new theatrically-released movies will continue to appear on Netflix as well. Marvel TV shows which have already been released on Netflix will also remain available on Netflix.

Disney isn’t the first to break off from a major streaming service and form a new one. Such companies as Filmstruck, HBO, and Starz have already broken off to form their own in-house streaming services, as have many others. The entertainment world seems to be catching on to the fact that Netflix is perhaps an unnecessary middleman. Disney is the strongest company yet to take on Netflix.

Although Disney is trailing behind Netflix for now, it is nonetheless in a good position to challenge Netflix for market supremacy. In the field of original content, Disney is the clear winner over Netflix.  Disney has a huge, devoted base of people who grew up or are growing up on Disney movies and will likely follow them on to a different service.

Of course, Disney has a lot of catching up to do in terms of building a dedicated base of consumers using the streaming service. Netflix has over 100 million subscribers.

Featured Image via Pixabay

Ashley Leader

Give me a book and a pair of running shoes and I will be pretty satisfied with life.

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