Disney And Apple Take On Netflix In The Streaming Wars

Summary

The streaming video market is becoming increasingly competitive, with major players like Netflix, Hulu, Disney Plus, Apple TV Plus, and HBO Max vying for dominance. As more consumers ditch traditional cable in favor of streaming, the industry is witnessing an arms race to create exclusive content. Companies are spending billions to secure original programming, while cable providers adjust by offering internet bundles. However, with multiple streaming services on the rise, consumers face a fragmented experience, potentially leading to aggregation solutions or higher costs. The future remains uncertain, but casualties are expected in this crowded market.

Takeaways

• 😀 The streaming video market is becoming highly competitive, with numerous platforms fighting for market share.
• 😀 Traditional cable TV is in decline, particularly among younger audiences (18-29 years old) who prefer streaming services.
• 😀 Streaming platforms like Netflix, Hulu, Amazon Prime, Disney Plus, Apple TV Plus, and HBO Max are heavily investing in original content to attract subscribers.
• 😀 Netflix leads the charge in original content, spending billions to produce exclusive programming that can't be taken away from them.
• 😀 The rise of streaming services may lead to users paying as much or more than traditional cable subscriptions, especially with the increasing number of services available.
• 😀 Disney Plus leverages its powerful content library, including Marvel, Star Wars, Pixar, and 20th Century Fox, to compete effectively in the streaming wars.
• 😀 Apple TV Plus is betting on exclusive original content, featuring high-profile creators like Oprah, Spielberg, and Jennifer Aniston.
• 😀 HBO Max offers a competitive product with content from HBO, Warner Brothers, and original programming, at a price expected to be around $15 to $18 a month.
• 😀 The future may include aggregator services that bundle popular streaming services together, potentially mimicking traditional cable's pricing model.
• 😀 Cable providers still have an edge in delivering live content like news and sports, which streaming services have yet to fully replicate.
• 😀 Despite the rise of competitors, Netflix is expected to maintain a leadership position in the streaming industry, though competition will increase significantly in the coming years.

Q & A

What is the 'streaming wars' and why is it important?

The 'streaming wars' refer to the intense competition between major streaming platforms like Netflix, Disney+, Apple TV+, HBO Max, and others, as they vie for subscribers and market dominance. It is important because it represents a significant shift in how content is consumed, as traditional cable TV is being replaced by more diverse, on-demand streaming options.

What is the current trend in TV viewership, particularly among younger audiences?

As of 2017, 61% of adults aged 18-29 primarily watched TV through streaming services, compared to just 31% who watched cable. This shows a significant shift in how younger audiences are engaging with television content, favoring on-demand streaming over traditional cable.

How has Disney positioned itself in the streaming market?

Disney has positioned itself strongly in the streaming market with the launch of Disney+, leveraging its vast content library, including popular franchises like Marvel, Star Wars, Pixar, and National Geographic. Disney+ is offered at a competitive price of $6.99 per month or $69.99 per year, and the company also offers a bundle including ESPN+ and Hulu.

What strategies is Apple using to compete in the streaming market?

Apple is focusing on original content, recruiting prominent producers and actors such as Oprah Winfrey, Steven Spielberg, Jennifer Aniston, and Reese Witherspoon. Apple TV+ is set to launch in 2019, but its pricing strategy has not yet been revealed. Apple aims to compete through high-quality original content and a strong brand presence.

What role is HBO Max playing in the streaming wars?

HBO Max, set to launch in 2019, is a major contender in the streaming wars. It will offer content from HBO, Warner Media, and DC Comics, as well as exclusive programming. It is expected to cost around $15 to $18 per month and will compete directly with other platforms by offering high-quality content and exclusive shows like Friends and DC Universe properties.

How is NBCUniversal approaching the streaming market?

NBCUniversal, owned by Comcast, is taking a cable-focused approach with its streaming service. The service will be free to cable customers but will likely cost around $10 per month for cord-cutters. It will be ad-supported and will feature content from NBCUniversal’s own library, including exclusive shows and movies.

What is the concept of 'cord cutting' and how is it affecting the cable industry?

'Cord cutting' refers to the trend of consumers abandoning traditional cable TV in favor of streaming services. This trend has been on the rise, with major cable providers losing millions of subscribers. In 2018 alone, the five largest cable companies lost 3.2 million pay-TV customers. As more people opt for streaming, the traditional cable industry is being forced to adapt.

What challenges do consumers face in the growing streaming landscape?

As the number of streaming platforms grows, consumers face the challenge of managing multiple subscriptions and navigating a fragmented content ecosystem. This could lead to higher costs, as users may need to subscribe to several services to access all their desired content, potentially making streaming as expensive as traditional cable TV.

What is the potential future of streaming services?

The future of streaming services is likely to involve more competition, consolidation, and possibly bundling. Consumers may opt for aggregators that combine multiple streaming services into one package, providing more flexibility and choice. However, some smaller platforms may struggle to survive, leading to consolidation in the industry.

How are traditional cable providers adapting to the rise of streaming services?

Traditional cable providers are adapting by shifting their focus to internet-based services, offering broadband alongside their content offerings. As more people cut the cord, cable companies aim to maintain revenue through internet subscriptions, creating a 'cord shift' rather than a complete collapse of the cable model.