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Disney is just the first of many to abandon Netflix

 
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 12 months ago '13        #1
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misterethoughts 354 heat pts354
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Disney is just the first of many to abandon Netflix
 

 
Last month, Disney announced its intention to take its films off Netflix in 2019 and start its own streaming service. I wrote that Disney could be just the first of many media companies with differentiated content to pull their deals with Netflix and offer their own streaming packages.

Indeed, we're already seeing it happen. 21st Century Fox's FX now offers commercial-free streaming of its current seasons of originals and many series from its back catalog. AMC Networks offers a similar service. The only catch is customers have to be cable subscribers in order to subscribe to either streaming service. Both started with Comcast, and FX recently struck a deal with Cox for distribution as well.

All about staying in control
When FX announced its streaming service, CEO John Landgraf wrote, "We have been diligent about recapturing the in-season stacking rights for all current original programming and recapturing the rights to all seasons of a large portion of our legacy of great original series." In other words, it's not renewing deals with Netflix or other streaming video platforms.

President of AMC Charlie Collier wrote, "We continue to build deeper relationships with fan communities across all of our programming." Those relationships are what give networks like AMC and FX the strength to move to a stand-alone model instead of selling the streaming rights of their shows to Netflix. Not only does it have the potential to generate more revenue (albeit at a greater risk), it strengthens the relationship between the network and its viewers. Netflix had a tendency to obfuscate network branding.

Disney likewise has several strong brands for its film studios, and it makes much more sense for Disney to develop a more direct customer relationship than to distribute its films through Netflix.

Ironically, Netflix itself may be the posterchild for networks to take their content off of Netflix. A growing number of subscribers are swayed to subscribe largely because of its catalog of originals. Netflix is proving a strong catalog of original content is enough to get subscribers to pay for a streaming service.

AMC and FX are missing one key ingredient
One of the big things holding back networks like AMC and FX is that they still don't have the infrastructure to control distribution. Disney bought a majority stake in BAMTech, the streaming video technology spun-off from Major League Baseball, in order to support its future streaming services. It also has a lot of experience in handling direct-to-consumer products and the customer service and billing requirements that go along with it. FX and AMC don't have that.

That's why they've initially partnered with Comcast. Comcast provides an easy way to sign up (through its X1 platform), integrates the billing with customers' current cable bills, and has a ton of experience in customer service (the quality of which is always called into question). The networks just have to worry about delivering the product.

Partnering with cable companies means these types of services will be reserved for cable subscribers. Indeed, that's likely what they want for the time being. Cable affiliate fees still provide a huge chunk of revenue for most cable networks. Over time, however, some may see value in breaking away from the cable companies and going completely over the top. It took HBO a long time, for example, but it's finally found a greater opportunity in going direct to consumers.

In the meantime, these services are great for cable as they provide yet another incentive to keep paying that bill every month. They also likely get some affiliate revenue for handling distribution and billing of the services. For Netflix, it puts further pressure on its original content to draw in subscribers and keep them from churning. In the long run, however, more over-the-top options drawing customers away from cable could ultimately benefit Netflix.

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105 comments for "Disney is just the first of many to abandon Netflix"

 12 months ago '04        #2
Fresh Beats 1 heat pts
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I can see Disney doing this because their bread is long and they have the content. Other stations need to stay humble. I'm not trying to flip between a new app each time I want to watch a show.

 12 months ago '15        #3
RevolverLuciana 
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This isnt good for the general consumer as if this continues people arent gonna be able to get as much content in one place as they were before.

 12 months ago '07        #4
TH35 106 heat pts106
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I said this in another thread that it’ll be a trend (sh*t leaving Netflix) but some didn’t want to listen.

 12 months ago '11        #5
Sin 1656 heat pts1656
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 TH35 said
I said this in another thread that itíll be a trend (sh*t leaving Netflix) but some didnít want to listen.
They called me crazy also when I said this

 12 months ago '06        #6
daffysm 
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its not gonna fly, the idea of netflix was convenience

 12 months ago '11        #7
Sin 1656 heat pts1656
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 daffysm said
its not gonna fly, the idea of netflix was convenience
I wouldn't mind having to check several apps

Instead of just Netflix

 12 months ago '14        #8
Sphynx 161 heat pts161
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 TH35 said
I said this in another thread that it’ll be a trend (sh*t leaving Netflix) but some didn’t want to listen.
 Sin said
They called me crazy also when I said this
 BlaqThumSoCal said
They called me crazy 2
n*ggas looking for pats on the back like they just said some revolutionary sh*t CLEARLY this is the direction that media content and economics is headed as millennials and beyond laugh at the idea of paying $120 a month for cable

Cable is only going to exist for old people who stuck in their ways. Everybody else is going to pick and choose 1-3 $12 dollar streaming bundles and rock with what exactly it is that they want to watch. This been clear for about 5-7 years now as companies have realized the value of streaming. That's why Netflix is basically a revolving door of content, and Hulu is forced to cut major checks for content relationships. Companies know the value of their content libraries and they gon make sure they eat off their own sh*t first and forremost.

Why you think Netflix in all this debt, yet still throwing money at all the original content they can come up with. They know sooner than later that's going to be basically all they can rest their hat on, when the 5 major conglomerates take all their content to start their own streaming services

 12 months ago '11        #9
Sin 1656 heat pts1656
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@ @

 12 months ago '06        #10
daffysm 
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 Sin said
I wouldn't mind having to check several apps

Instead of just Netflix
im honestly already overloaded with an app for everything else

plus having to pay for each service is insane

 12 months ago '14        #11
kenya1995 9 heat pts
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Netflix been k!lling it with their own shows so whatever. Just don’t touch the office.

 12 months ago '11        #12
Sin 1656 heat pts1656
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 daffysm said
im honestly already overloaded with an app for everything else

plus having to pay for each service is insane
Individual apps are easier to cancel after whatever show I like is over

And easier to share amongst a group of friends each pays for an app

 12 months ago '15        #13
Layrome 
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 Sin said
Individual apps are easier to cancel after whatever show I like is over

And easier to share amongst a group of friends each pays for an app
What?? Why would you go all of that trouble? It makes no sense.

 12 months ago '06        #14
Michael 1987 734 heat pts734
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 kenya1995 said
Netflix been k!lling it with their own shows so whatever. Just donít touch the office.
yeah but they're not making as much back as everybody thinks they are.

 12 months ago '07        #15
genobee 21 heat pts21
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There's way too many streaming sites out there, which makes these type of things mean-less. If you don't wanna stream you can always download and use Kodi. My job have a business class internet so I download all my sh*t at work then upload to my synology when I get home.

 12 months ago '11        #16
Sin 1656 heat pts1656
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 Layrome said
What?? Why would you go all of that trouble? It makes no sense.
It makes a lot of sense

I pay $12 for Netflix for me and six friends and family to share while my mother pays for Hulu that we share and another pays hbo two others pay for showtime and stars

We each pay around $10 and all share the apps

 12 months ago '05        #17
Y.G. 27 heat pts27
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 Sin said
I wouldn't mind having to check several apps

Instead of just Netflix

 12 months ago '17        #18
lucifershammer 8 heat pts
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 BlaqThumSoCal said
They called me crazy 2
:jtlol:

 12 months ago '04        #19
Propel Water 20 heat pts20
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HBO been doing it

 12 months ago '05        #20
Y.G. 27 heat pts27
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 Sin said
@ @
As I said before, know one is going to pay for a billion different streaming apps. Netflix will continue to be king of streaming content. Lineup too strong.

 12 months ago '16        #21
Birdmans Hands 3 heat pts
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 Y.G. said
As I said before, know one is going to pay for a billion different streaming apps. Netflix will continue to be king of streaming content. Lineup too strong.
...literally the point, it won't be when all the studios remove all their sh*t

 12 months ago '16        #22
Peace God 42 heat pts42
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I swear to god if these companies get gassed I will go off the grid and go full on their a.sses. Makes very little difference to me.

More than likely the parent company with the most subsidiaries to bundle into their streaming selection will win this f!ght and Netflix is nowhere near that level.


Last edited by Peace God; 10-03-2017 at 01:50 AM..

 12 months ago '17        #23
cabeast93 
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 Fresh Beats said
I can see Disney doing this because their bread is long and they have the content. Other stations need to stay humble. I'm not trying to flip between a new app each time I want to watch a show.
I think thats wear it's partially headed HBO GO ect... Ppl always complained about cable companies and having the pay for hella channels when they only watch a few and packages ect... All that cutting the cord is costing them $. Now customers will have to pay per channel and have to pay for internet service. I just wonder how much channels/ apps will cost.

 12 months ago '12        #24
BrokenSafety 40 heat pts40
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they are out there damn mind everyone is cuttin cable to go with netflix if mother fu*kers dont want to pay for cable what makes them think theyll pay for 100 different streaming sites, i got netflix and thats it if i want to watch anything thats not on there im streaming it for free

 12 months ago '14        #25
FukHowYouFeel 1 heat pts
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Disney is about one of the only things that could leave it. I can easily see a parent paying extra $10 a month to Disney for their kids, and you could see the writing on the wall when HBO added Sesame Street.

WWE IS wrestling so that makes sense too they'd have their own service.

But even the premium networks aside from HBO would struggle to just leave Netflix.

I'm not sure why people hate on it. It's a cheap service with dope content.


 12 months ago '12        #26
JBAL NY 57 heat pts57
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Back to not paying for sh*t it is then. They don't understand only reason ppl coughing up money now is cuz of the convenience. Once that's gone, so is the money. fu*k em.

 12 months ago '14        #27
TuPadreElGuero 3 heat pts
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Netflix is still the best bang for your buck plus has way more titles then all those aforementioned. AMC/FX/DISNEY would you around $20.

Most people are gonna stick to netflix and its wider ranger of titles for less than $15 a month.

 12 months ago '04        #28
NAKHI ALLAH 1 heat pts
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 Sin said
It makes a lot of sense

I pay $12 for Netflix for me and six friends and family to share while my mother pays for Hulu that we share and another pays hbo two others pay for showtime and stars

We each pay around $10 and all share the apps


Makes perfect sense

 11 months ago '06        #29
Profycy 3 heat pts
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 TH35 said
I said this in another thread that itíll be a trend (sh*t leaving Netflix) but some didnít want to listen.
Exactly.

I feel they need a Spotify content model.

 11 months ago '11        #30
Pakchoy 876 heat pts876
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 Michael 1987 said
yeah but they're not making as much back as everybody thinks they are.
need more details on this. I thought they were making a k!lling on their new shows and movies

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