August 29, 1997- Netflix was born; sixteen years later, this baby company would take down the largest entertainment provider Hollywood had at that point ever seen. After taking the throne, the king reigned supreme- with services like Hulu and HBO never coming close to bringing it down. However, on November 12, 2019, The Walt Disney Company- one of the largest entertainment corporations in the world -launched their own streaming service, Disney+, worldwide as a means of expanding their platform. Having taken the internet by storm, consumers are left with only one question- What does this mean for Netflix?
Netflix had started out like any other company- small, gaining its ground, taking on an industry that eats companies like this alive. At the time, Blockbuster was the king that sat on the throne- dominating the home-video industry with billions in revenue. However, the founders of Netflix, Marc Randolph and Reed Hastings, invested in something that would not just forever change the industry, but be the start to the end of Blockbuster- the Internet. On April 14, 1998, Netflix launched the world’s first online video rental store- having the same buy-or-rent-with-a-late-fee system that Blockbuster used, but with the convenience of doing it from one’s own house. No more did people have to stand in lines on a Friday night as everyone glutted themselves into the store to get their movies for the weekend. It was the shot heard around the world for the industry- there was no going back.
From there, Netflix thrived. From their release of the monthly subscription system that eliminated late fees, to their being able to turn down Blockbuster when they tried buying them out for $50million, to their new customer recommendations algorithm. Netflix had a few bumps, but they weren’t slowing down. Sixteen years after its birth, Netflix seized the throne from Blockbuster in 2013. Netflix from there reigned over the home-entertainment industry. Out of the students surveyed at Red Mountain, 67.9% currently use Netflix with 88.5% of them being satisfied with the streaming platform.
However, every king has their mistakes. With shows like The Office- their most viewed show according to People Magazine -leaving their platform in 2021, their consumers aren’t happy. Netflix’s original television shows that have gained a staggering fan base- such as Stranger Things, Orange is the New Black, and Riverdale -have put Netflix into a reported debt of $3.5 billion according to Forbes reporter Stephanie Denning. And with every season of their television shows taking around a year to produce, this in itself could cause subscribers to lose interest in Netflix’s service. An already reported 11.5% of students surveyed at Red Mountain are not satisfied with the Netflix streaming platform.
However, with the launch of Disney Plus on November 12, 2019, those prior mistakes that Netflix has made might bring greater damage than once thought. Over the years, The Walt Disney Company has bought out other entertainment companies such as Hulu, ESPN, Marvel Studios, Pixar, Lucasfilm, Fox, National Geographic, and ABC. All of these services except ABC are available on Disney Plus- and with Disney having a reported revenue of $22.45 billion just in 2016 alone according to Business Insider, funding original television shows will not be an issue.
Disney Plus has already created original shows for their platform themed around beloved franchises that Netflix simply cannot create. Shows set in the Star Wars Universe, Marvel Cinematic Universe, Disney Channel Universe, and even National Graphic Originals have already been produced and set in motion. And with the Internet and media already showing love for the Star Wars original The Mandalorian, the plot thickens in the battle for the throne.
And with those original shows almost guaranteeing to catch the eyes of fans comes the added benefits of pricing. Netflix offers three subscription plans according to Business Insider. The most basic plan is $8.99 a month which allows one account for one device, the next one up is the $12.99 plan in which two devices in HD are available, and the Premium plan is $15.99 a month which four devices can be streamed at once in HD/4K Ultra HD. However, Disney PLus offers prices that can very easily compete. Their basic plan- which offers regular Disney classics, originals, etc. -costs $6.99 per month, prices that Netflix had never at any time offered. While their Bundle Pack costs $12.99 per month which includes all or regular Disney Plus and gains consumers free access to Hulu and ESPN. Disney also offers a one time payment of $69.99 for a whole year of Disney Plus access.
Prices like those with content that Disney Plus offers means huge competition for other streaming services. Netflix’s long time rival Hulu had already been bought by The Walt Disney Company in 2017. And with other rivals such as Amazon Prime offering $8.99 per month and HBO Now offering $14.99 per month, the plot thickens for who is next to take the throne of the home entertainment industry. Out of the students surveyed at Red Mountain, 59% plan on purchasing their own subscription to the new service.
However, like the king rival Netflix has done, Disney Plus has made some moves that might be cause for concern regarding dissatisfaction with customers. The Hulu subscription that comes with the Disney Plus Bundle Pack is not ad free. If consumers really want ad free Hulu, then they need to purchase a separate subscription to Hulu for $11.99 per month on top of the $12.99 per month Bundle Pack. And even though Disney Plus will credit consumers $5.99 every month for doing this, the need for extra money spending and general inconvenient extra steps might be something that keeps subscribers from purchasing the Bundle Pack all together. Out of the students surveyed at Red Mountain, 41% stated that they will not be purchasing Disney Plus.
However, the game is set, and the competition has been started. Netflix has already retaliated by signing a deal with children’s television producer Nickelodeon. The deal allows Netflix to produce original animated films and in partnership with Nickelodeon to be broadcasted on their service. Currently, Disney Plus is approaching their first month of publicity. And so far the service has gained extreme attention from fans and the media. Only time will tell who will ultimately rule the home entertainment industry. Both have their strong suits and their downfalls. But one thing is certain, there can only be one king.
(featured photo courtesy of techradar.com)
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