How Disney will force Netflix to change streaming
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How Disney will force Netflix to change streaming

December 31, 2019

– Right now, we’re living in a golden age of streaming services. For $15 a month, one
service can give you access to basically endless movies and shows, with new offerings coming in every week. But enjoy it while it lasts,
because wheels are already in motion to make those
services more profitable for companies, and worse for you. Someday soon, to get the
same amount of content you’re getting now,
you’re gonna have to pay for more streaming services. (introspective music) So think about all the content
on a service like Netflix, and where all of it comes from. A lot of what you see is made by Netflix, but most of it’s not, whether it’s network TV shows, old movies, or movies that were just in theaters. A study last year found
that licensed content makes up 80% of what people actually watch. Netflix pays to license that
content from the studios, and it’s a big part of their business. Access to the streaming
market is important for studios, too, because
streaming media is where the viewers are. Netflix added 30 million US subscribers in the past five years,
and that’s coming at a time when traditional cable and broadcast TVs have
less viewers every year. But licensing to Netflix, Hulu, and the other services isn’t the only way for studios to get their movies online. Next year, Disney plans to launch its own streaming service, a
direct competitor to Netflix. Disney’s a little late to the party, but the service will have
so much popular content that it may not matter. Remember, Disney owns
Pixar, Marvel, Star Wars, and 21st Century Fox, along
with more than 90 years of beloved movies and TV. The bad news is, if it’s
on Disney’s new service, it doesn’t really make sense
to put it on Netflix, too. Once Disney’s current
licensing deals expire, Coco, Guardians of the
Galaxy, and Last Jedi are all probably gonna disappear from the other streaming services. It’s a simple business move. Why would Disney put Last Jedi on Netflix when it can put it on Disneyflix and make you pay another
$15 a month for it? Even if Netflix offered to
pay more money in licensing, Disney would rather have you watch their movies on their service. Disney is actually really
good at making money when distribution methods change. If you look at the history of the company, they’ve done it over and over again. When VHS and DVDs became popular, Disney pioneered a system
called the Disney Vault, where movies would be
locked away for years, and only made available for
lucrative, limited-run sales. – [Narrator] All these
magical Disney videos before they disappear. – Whether you love or
hate the vault, it worked. A study in the year 2000
found that 55% of Disney fans replaced their VHS tapes with DVDs, compared to only 14% for other studios. Cable expanded the
playing field even more. Initially, Disney licensed
its content to HBO, but soon they realized
that the real money was in running their own channel. So the Disney channel was born. Last year, Disney made 40% of its money from cable channels, including
the ABC networks and ESPN. And as cord-cutters move away from cable, towards services like Netflix,
Disney’s trying to pull off the same trick with streaming video, using its massive content library to build a whole new
service from the ground up. Now, Disney’s not the only
studio trying to do that. Comcast has its Xfinity streaming service, Time Warner has HBO Go. The only way to see the
latest Star Trek series is by paying six dollars a
month for CBS All Access. Everybody’s vertically integrating, which means there’ll be less and less third-party content
available to license. If you wanna follow all
the movies and shows, you’ll have to pay for all the services, and there’ll be more and
more of them to pay for. If you’ve noticed a lot more
Netflix Originals lately, that’s why. If you can’t find Star Wars
or Iron Man on Netflix, executives are betting you’ll stick around for Stranger Things
and BoJack Horseman, just like you stuck with
HBO for Game of Thrones. So if you follow a bunch
of streaming services now, you might soften the blow
by borrowing the password from your parents or friends, but that could be in danger, too. Streaming services can shut down account sharing anytime they want. Just look at Spotify, where sharing accounts
is nearly impossible. Netflix is slowly cracking
down on account sharing, too, adding distinct profiles, and stopping any profile that streams
multiple shows at once. As the industry matures,
those rules are gonna tighten, and it’s gonna get harder and harder to dip into a service
without paying for it. Now, for corporations,
this is about the money. Disney paid four billion
dollars for Star Wars, and they wanna make that money
back as fast as they can. But all that leaves the
general interest fan in a tough place. Do you stick with a
single streaming service, and miss out on the next
wave of Marvel movies? Is the new Star Trek really
worth six dollars a month? We don’t know what the future of streaming will look like, yet. The transition away from
licensing could be jarring, or it could happen slowly, over years. Competition between the new services could inspire a new
golden age of TV shows, or everyone could fall back on old tricks and familiar franchises,
but whatever happens, the pipeline between the camera and your screen is gonna
get a lot more controlled, and if you want the same amount of content you’ve been used to, you’re gonna have to pay more. Thanks for watching, I hope you liked it. If you want more free
video content, check us out at, and like and subscribe to

Only registered users can comment.

  1. Dang! And I thought having streaming would be cheaper than cable… If one already has Netflix, Hulu and Amazon Prime plus your internet provider of course….adding another service will put the monthly payment close to regular cable☹️

  2. How about Disney bring back all those Marvel shows that they cancelled for starters and then I'm in Netflix is up to $18 a month

  3. It's like they want us to find other not so profitable ways to watch. The consumer wants convenience, and if that means going on a shady site and risking a virus, so be it.

  4. Producion and distribution are different buissneses and should be separated by law. Subscription model is working onlly if it gives consumer wide choices. I am Dezeer subscriber, and I can listen to any tune I can think of. The same shoud be with movies and TV shows.
    And no, I will not subscribe to Disney streaming service.

  5. Yar har, fiddle di dee,
    Being a pirate is alright to be,
    Do what you want cause a pirate is free,
    You are a pirate!

  6. I have an idea. When all of it gets so controlled viewers will find it cheaper just to watch content on cable again. * Cue circle of life

  7. Why would anybody stream any disney when you can just buy the movies or use amazon prime 🤦‍♀️ come on people dont be a zero

  8. I wonder if the day will come when studios stop releasing movies and TV shows on disc to force people to subscribe to their streaming sites

  9. I watched movies show and music for free in jio movies , hotstar and Spotify .
    I don't want to pay to subscriptions. I already pay for Internet connection to jio

  10. Simple. I just subscribe to Netflix and pirate the rest. If they want to make it troublesome for me, i'll just not give them my money.

  11. Considering Disney+ will include a ton of exclusive, original TV Shows and Films on Day 1 with more coming over time and will only cost $6.99/mo or $70/yr and will support up to 7 profiles, 4 simultaneous streams and up to 4K HDR, it sounds like a pretty awesome deal to me. Can't wait for it.

  12. reading from all this comment i didn't know that pirating is that hard in another country, you guys really still use torrent for pirating movie? why not use vpn and then go to pirated online streaming website, there's a tons of it

  13. Getting harder to share Netflix and Spotify, really? I've never had issues with it, I've been doing it ever since I can remember.

  14. Disney+ isn't going to be $15/mo like you said.. its $6.99/mo and then you can get Disney+/Hulu/ESPN+ for only $15.99 now and with all of those shows by Disney/Fox (and tons of others) leaving netflix so why keep netflix now when it costs more than a 3 bundle package which includes Disney/Hulu/ESPN? Im leaving Netflix for sure. Plus on top of that the new lineup of Apple phones/tablets gives you free Apple TV+ for a year if you buy one of their products. Netflix is going to really suffer i bet.

  15. Thank god no more horrible Netflix originals now all I’m gonna get is good quality Disney movies and shows
    Bye Netflix ✌🏻

  16. Right now I’m pissed off because I have Hulu and Netflix at the same time so I don’t know why Disney is having their own streaming service today I’m gonna buy my membership today Disney+

  17. Disney is buying everything in the whole world. This is scary. They will own half of all that we watch. Never give your money to Disney, other than for some of their Marvel movies ofc.

  18. Honestly I don’t know why xfinity is still so expensive with all these streaming services and now you can bundle Disney+ with Hulu and ESPN seriously I’m probably going to cancel my cable soon as my contract is up.

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