Netflix was long regarded as the undisputed streaming king. But now the most valuable company in the world is shaking the Netflix throne. Disney and Warner Media could also become dangerous to the Netflix monarchy.
Recently Apple presented his new in-house streaming service, that is supposed to beat Netflix.
Apple’s reasons ihre obvious: in view of a saturated smartphone market, the Silicon Valley giant wants to emancipate itself from its declining iPhone revenues and position itself more broadly.
In contrast to Netflix, Apple not only wants to attract customers with its own content, but also act as a platform company for other services. Users should also have access to content from various participating services such as HBO or Starz. Netflix is not included – and will probably remain so.
While Netflix has so far mainly dealt with Amazon Prime Video as a halfway serious adversary, the list of his opponents is increasing considerably this year. It is not only Apple that is pushing its own offer onto the market – Disney and AT&T subsidiary Warner Media also want to shake the Netflix throne.
The launch of the in-house streaming service “Disney+” has top priority for Disney CEO Bob Iger in the current year. Industry experts expect the service to be launched at the end of 2019.
Warner Bros. also plans to launch its own streaming service, “WarnerMedia on air”, in 2019. Netflix customers should feel the pain of this. Numerous Warner contents should then no longer be available via Netflix – including such popular series as “Riverdale”, “Supernatural” and “The Big Bang Theory”.
In fact, Disney and Warner have a huge advantage in the streaming battle: they already have a plenty of original content. After the 71 billion dollar takeover of 21st Century Fox, Disney even owns a whole army of heroes. The in-house “Star Wars” heroes and “Avengers” superheroes are now joined by Fox’s “X-Men” and „Kingsmen”.
In order to keep pace, Netflix has to invest radically in its own content: At the end of 2018, streaming content obligations amounted to 19.3 billion dollars. These are funds that Netflix has already spent on upcoming productions, but which do not yet have to be recorded as a loss in the balance sheet.
To keep it short: There are probably hard times ahead for Netflix.