Netflix is undoubtedly the world leader in video streaming. But there are some other big names, who if they come up with streaming services of their own, could pose a major threat to Netflix. One such name is Disney, who will soon launch its subscription-based video streaming service in the UK.
Threat to Netflix and other major services
Disney’s subscription-based service called Disney Life will have a single app featuring the films, music, books and television programs of the company. At the launch, there won’t be any films from its Star Wars and Marvel franchises.
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Mark Mulligan from Midia Research, a technology analysis company, told BBC, “Content companies like HBO and Disney are realizing that old business models no longer make sense. They used to sell their programmes to pay TV providers. Now, in the digital era, they can have a direct relationship with the consumer.”
Established services like Amazon Prime Video, Netflix and Now TV will get serious competition from Disney. Mulligan said that pay TV providers do not give much priority to Kids’ TV because it is the adults who pay the bill, but Disney is going to challenge this belief.
Disney’s huge fan following a threat to Netflix
The new service from Disney will come at a monthly subscription fee of £9.99, and the subscribers will gain instant access to hundreds of films, songs and books from the company. The streaming service from Disney is priced higher than those of rivals such as Amazon and Netflix, who have libraries full of movies from a variety of providers, but it is cheaper than subscribing to cable and satellite channels of Disney.
Disney told the BBC that there are already several streaming services in the UK, but it is launching in the UK because of its “many Disney fans” Disney said the families in the UK are more receptive to new technology and demand more flexible entertainment. The market has superfast broadband connectivity and high proliferation of digital devices as well.
Separately, Google also came up with subscription-based YouTube service to take on Netflix. The service called YouTube Red will cost $10 a month.
At 10 am EDT Friday Netflix shares were up 2.09% at $99.42. Year to date, the stock is up almost 103% while in the last three months, it is down almost 10%.