There’s no doubt that Disney has dominated big and small screens with its blockbuster movies and shows. However, the coming of Netflix, an online streaming service that’s already producing its own content, is raising new questions. Can Disney transfer the years of dominance it has had to the online streaming industry?
Netflix’s growth over the last few years is a clear indication that online streaming is becoming a big thing in entertainment. We don’t know whether traditional ways of broadcasting will go away, but one thing is for sure: people are using online streaming more than ever before. And this is something that Disney and its CEO, Robert Iger, can’t afford to ignore. Iger has already been credited with moving the company to new heights. He has overseen the release of a number of billion-dollar blockbuster movies such as Black Panther, Star Wars: The Last Jedi, and Avengers: Infinity Wars.
Taking on Netflix in the online streaming industry will be his next big challenge. Disney will have to develop the technology and the infrastructure needed to deliver its content directly to consumers.. However, analysts believe that it’s very important for the company to get the tech strategy right. Every time Disney has tried online streaming, things haven’t worked out very well.
As a result, the company is already playing catch-up with Netflix when it comes to distributing technology. Besides, Netflix is also investing a lot of money on original content and there have already been a number of hit shows on the platform. To show just how fast Netflix has grown, back in May this year, the company’s value in the stock market briefly overtook Disney’s. At the time Netflix became the most valuable company in the entertainment business. However, the stock value tanked a bit after the company failed to hit subscriber targets for the second quarter of the year.
Despite this, Netflix is already a leader in the online streaming industry with over 100 million subscribers. Many analysts believe that the challenge of the direct-to-consumer model for content creators like Disney has often been underestimated. There’s this assumption that all you need is good content and a good website to get where you want. But things aren’t that easy, it will take a huge effort to compete with Netflix.
Disney will need to focus on expanding its subscriber base in a market that could easily be saturated in the coming years. To make it worse, based on Disney’s history and reputation in the industry, the only way the company can justify its online streaming strategy would be through millions of subscribers. This is a very difficult target to achieve but the company is moving fast. The acquisition of Fox and all of its assets is seen as a big step in preparing Disney towards online streaming, even though acquiring content is not the problem. After all, Disney has done this before. The challenge is building the right streaming platform.