How Disney Made Your Netflix Subscription More Expensive
Netflix had a plan
Then Disney quit the service to go it alone.
Everybody has a plan until they get punched in the face.
And Netflix got punched in the face. They are making the right noise — ‘Disney will regret it’ — but they won’t. Disney is one of the few companies that creates a product that is truly differentiated. People love Disney and for Netflix this is a huge problem because people want to watch it and if its not there they will go elsewhere.
But what it also signals is something far bigger. The tide is turning on aggregators of other people programming and services.
Does this spell trouble for Spotify and the Music industry?
Music producers should be taking note, they own the catalogues and license distribution to Spotify, Apple Music etc. But the catalogues are what people want to listen to. New Music is what people want.
Netflix must hit home runs with original content
We all know that is easier said than done.
Sure they are throwing money at the problems but what happens when the Tech multiples their stock price recedes as companies withhold their most valuable content? Financing shows with debt on the basis of current stock price is akin to building a house on swamp land hoping it won’t flood.
Eventually it will.
The music business faces the same dilemma.
Just as Spotify and Netflix have figured it out the companies producing the content have recognised the potential to cannibalise their products by offering their own services.
Perhaps this is just a negotiating stance in order to extract as much as a Fee for their content as possible.
Probably not.
The reality is people are greedy, and the companies who own the shows are offended by the value Netflix has managed to create.
One of two things will happen.
Either the cost of subscription will Skyrocket or the owners of the content will branch off and offer there own streaming service
Sound Familiar?
Branching off see’s these services go full circle, returning to precisely the same cable subscription model Netflix was trying to disrupt.
All this highlights is the lack of agility by cable networks
Like Blockbuster succumbing to Netflix, cableTV has been defeated by it as well.
They haven't reacted and are losing subscribers to Netflix of Pirate Streaming online. People want to watch what they want to watch when they want to watch it.
TV schedules have gone the way of the dinosaurs.
Amazingly the creators of the Shows could save Cable
If cable offers a higher quality image that steaming they win.
If you wait long enough disruption comes right back round again.
