The Mouse Building a New House
Disney is starting it’s own streaming service…balls. That is not actually a good thing. Why? Because they will also be taking down all their movies from Netflix. It rolls out in 2019 in the US and then worldwide.
Here’s the problem with more streaming services, first and foremost it’ll cost us the viewers more money to see a diverse array of content. Right now, I can watch a mix of Marvel, DC, Star Wars and just about everything else for one low price. Moving forward to watch the Marvel and Star Wars stuff I will have to get, let’s call it “DisneyStream” for the sake of this blog post. Instead of having to pay $10 for entertainment, it’ll now be $20. And as we get more and more streaming services, that number goes up. There used to be WWE stuff on Netflix, but now if I want to watch that stuff, I’d have to get the WWE Network.
Netflix was the answer to ballooning cable costs, but now as the market shifts, the money I used to spend on cable now is spent on multiple streaming services. Granted, most people will cap that number. I’m assuming most people will do 1 or 2 of these services, maybe 3 tops. In Canada, for now Netflix and Crave would suffice. But if “DisneyStream” takes the Marvel Netflix shows, I would probably have to add that to the rotation.
In theory more competition would be good for consumers, because prices could drop. But with competition, prices for content will go up. Netflix have to outbid Prime and Hulu for shows. As more services enter the market, those prices will go up. So I don’t see a price drop for us. I wouldn’t be surprised if there were a hike actually.
Lastly, I don’t think it’s a good thing for the entertainment industry. Traditional TV is not doing so well. Networks lose money. Shows get dropped all the time because their ratings and therefore ad revenue don’t cut it. It’s these paid streaming sites that have come in and cut deals to gain reach and keep these shows in production if not straight up revive them when they are cancelled. Now when you have multiple services, you know people won’t buy all of them, and will begin to illegally stream your content. At the end of the day hurting the bottom line and again putting our favourite shows in jeopardy.
I know Disney has enough content to do a streaming service. Thinking about it, the immense library they have will mean hundreds of hours of entertainment. I might even get it. But in general the more of these services that’s out there, I don’t think it’ll be a good thing for the consumer.