The streaming wars are heating up. Who will win?
The Hustle

The streaming wars are heating up. Who will win?

Breaking down how Netflix, Disney, Amazon, Apple, and traditional TV networks fit into the streaming wars.

Source: Piñata Farms

Raise your hand if you watched Die Hard Wonder Woman 1984 or Soul over the weekend.

The release of these blockbusters on HBO Max and Disney+, respectively, are among other major streaming developments, as noted by The Economist:

The biggest mic drop was from Disney+, which announced 10 new Star Wars series, 10 new Marvel series, and 30 other series/films.

By 2024, Disney will spend $14-16B a year on content

This is in the ballpark of the $17B outlay Netflix made in 2020.

In fact, the meteoric rise of Disney+ makes it the only real contender to Netflix’s streaming crown (to wit: Netflix has an industry-low churn rate of  2-3%).

Disney forecasts 260m subs by 2024, which could put it on track to eventually overtake Netflix, currently with 195m users (not including the 10 college friends you share your account with).

Traditional TV networks going digital will see profits crushed

Media analyst Doug Shapiro lays out why:

Further, none of the traditional networks (other than Disney) have been able to capture significant streaming share. WarnerMedia, NBCUniversal, ViacomCBS, Fox, and AMC all have lower streaming share vs. TV.

Source: Doug Shapiro

What about Apple and Amazon?

These 2 tech giants are using Apple TV+ and Prime Video, respectively, to subsidize the rest of their business:

The non-Disney TV networks (AKA subscale streamers) have no choice when it comes to streaming, per Shaprio.

“But they are ultimately fighting for share of a shrinking pie,” he says. “The TV industry is likely to change radically as a result.”

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