The streaming world seems poised to change in the next couple years. Netflix has been the big leader for the last five years or so when it comes to both original and licensed content, but as time has gone on, other studios have made moves to directly appeal to the consumers themselves, eliminating Netflix from their income streams altogether.
For example, DC is working on their own streaming service, where they can produce content that the consumer can purchase directly through a subscription business model. But, of course, they’re not the biggest player with plans on the horizon. The big one coming up is Disney.
Disney announced their plans to move away from Netflix last year, and it’s led some to question whether or not Netflix should be quaking in their boots.
In an earnings release, Netflix seemed to have the opinion that there’s room for more than one big fish in this industry.
“The market for entertainment time is vast and can support many successful services. Entertainment services are often complementary given their unique content offerings. We believe this is largely why both we and Hulu have been able to succeed and grow.”
While we applaud Netflix for their statement, I think this is only true to an extent. Yes, there is room for maybe a few services. But, at some point, the market will become oversaturated with services, and pretty soon, there will be too many around, and audiences will have far too many choices. This will lead to them having to make tough choices about which services give them the most value, and will eventually lead to many companies spending more to run their streaming services than they’re taking in.
Disney and DC alone already add too much to this landscape, and if Disney needs a whopping 30 million-plus in order to break even, we’re not sure this will leave room for other smaller streaming services. In other words, while it may not be the big titans who are suffering, there will be a breaking point in the near future, and it won’t look pretty, as consumers are already starting to complain that the cost for content is starting to reflect cable in its costs.
What do you think of Netflix’s comments? Do you agree with them, or is the market already oversaturated with streaming services? Let us know your thoughts down below!
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