The Streaming Wars: Netflix ain't Scared. Disney & the Future of TV
Updated: Aug 20, 2019
As Apple, Disney, and NBC Universal are set to launch their video services, Netflix is unconcerned over the loss of licensed content.
In an earnings call last Tuesday, Reed Hastings said the company has prepared for the loss of "second window," or licensed content.
In 2012, Netflix dove into originals with House of Cards and significantly changed the cost structure of its content spend.
Unlike the content Netflix would license from rights holders, such as licensing “Friends” from WarnerMedia for $100 million/year, creating its own original content allowed movies and TV Shows to be created at a fixed-cost. And their lead in subscribers benefitted them lower content costs per subscriber.
For example, if Netflix paid $100 million for House of Cards and their streaming business had 30 million customers, then the cost per customer would be around $3.33.
On the flip side, a competitor with a million subs would have to pony up $100 per customer.
According to The Information, the value that Netflix puts on content licensed from other studios at Dec. 31 was $14.1 billion, more than double the value of the programming Netflix produces entirely in-house—valued at $6 billion. That suggests Netflix is still vulnerable to big entertainment companies pulling content off the service in favor of their own streaming offering, as Disney is doing ahead of the launch of its service Disney+.
On last week’s earnings call, Ted Sarandos, Netflix chief content officer said the top 10 most-watched shows on Netflix are all original programs, and only four non-Netflix are in the top 25.
So who’s telling the truth?🤔
We may never know, but Netflix is promising to be more transparent with its viewership data, so that’s promising.
Netflix now boasts nearly 149m subscribers globally, up almost 10m from last quarter. Over 60m of those subscribers are in the US. Game on.
Feeling The Churn: Why Netflix Cancels Shows After A Couple Of Seasons & Why They Can’t Move To New Homes. Link
Disney and the Future of TV. Link
The Companies Disney Owns: A Map of Disney's Worldwide Assets. Link
How Iger Broke Disney’s Netflix Addiction. Link
Disney's BAMTech Investment Was A Smart Move. Link
Hulu Buys AT&T’s Minority Stake In Streaming Service For $1.43 Billion. Link
Hulu CEO Randy Freer Offers Updated Strategic View To Disney Investors. Link
The Rise of OTT Has Forced Brands to Overhaul Their Existing Video Strategies. Link
Microsoft is taking its customers back from Walmart and GameStop. Link
GoT return pirated nearly 55m times. Link
DirecTV Now Drops NFL Network. Link
WarnerMedia Builds a Better Streaming App for its Upcoming OTT Service. Link
Advanced Ad Experiences Beginning To Expand Across OTT, Connected TV Platforms. Link
Viacom will debut 15 channels on Pluto TV to bolster its upfront pitch. Link
Cinedigm Bows CONtv on AVOD Service Pluto TV. Link
An Easy Definition Of Cord Cutting. Link
SVOD homes to overtake traditional pay TV in 2019. Link
Sports OTT technology spend will hit $6.8 billion by 2021. Link
OTT has a twin challenge of retaining viewers and balancing RPUs. Link
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