Right now, we’re living in a golden age for streaming services. For a small payment a month, we can access an endless number of films and TV programmes via Netflix, Amazon prime and many other services. However, times are changing, and the wheels are already in motion to make those services more profitable for companies, which means soon the consumers will have to pay for more streaming sites.
Even though Netflix has a lot of original content, a lot of the other content is made up of network TV shows, old movies or what we see in the theatres. A recent study shows that 80% of what people watch is licenced content.
Next year, Disney is planning to launch its own streaming service. Disney owns Pixar, Marvel, 21st Century Fox and more, so it could be bad news for other streaming services…why would Disney put the last Jedi on Netflix when they can put it on Disneyflix and make us pay another $15 a month for their own profit?
Disney is good at making money when distribution methods change. When VHS tapes and DVD’s became popular, the ‘Disney Vault’ was created – where movies were locked away for years to only be available for lucrative, limitative sales. A study in the 2000’s then showed that 55% of Disney fans replaced VHS tapes with DVD’s, in comparison with only 14% for other studios.
Cable has expanded the playing field even more so, and last year Disney made 40% of its money from cable channels including ABC networks and ESPN. While cord-cutters move away from cable and more towards Netflix, Disney’s using the same trick with streaming video – and with their massive content library they can build a whole new service from the ground up.
Originally created and published by Verge