How Disney will force Netflix to change streaming

How Disney will force Netflix to change streaming


– 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 theverge.com, and like and subscribe to youtube.com/theverge.

Only registered users can comment.

  1. I think all streaming services will license their shows, maybe at a more premium price. It just doesn’t make sense otherwise, no one will pay for 10 different streaming services.

  2. I’ll just be on putlocker then I guess

    I hope they put Hannah Montana and wizards of Waverley place and etc on tho

  3. This is what will simply happen…streaming services will hit a dead end like what is going on with cable TV, and a new way will be invented.

  4. Piracy streaming will emerge. All Shows in one App without paying any Cent.

    Netflix won to fight Piracy but the greed will ruin it again.

  5. The whole idea originally having video streaming services, was to give people more content at a low price a month, and reduce piracy in the process… These companies are literally shooting themselves in the foot and becoming simply more greedy, by setting up their own services.. It means audience will essentially be paying more money for certain stream services with less content in each as they have been split up.

    All this is going to do is increase piracy with people downloading illegally again and start up a new rise of Kodi addon's, these companies need to start working together instead of against each other. It's only going to end with the destruction of video streaming if things don't change.

  6. in the future, as an alternative option to subscribing if you want to see a specific new movie and don't want to sign up for subscription you may be able to pay a low fee for a one time view. like $1 to watch the new star trek episode. at that point the service could get your information and offer you discounts on upgrading to a monthly subscription. just a thought.

  7. there will most likely be bundling between services so you don't have to individually subscribe to each service. essentially putting us in the same place as we we're 10 years ago with cable networks, just a new medium

  8. The reason I don't like Netflix is that you get advantages if you live in certain countries my younger brother has been watching mako h20 adventures and finished all 3 seasons and where I live we only get 3 not 4 and I told him try a vpn he got so excited to see shows like liv and Maddie bunk'd and especially season 4 the when he clicked on it it said that he's using a vpn and to turn it off and try again it changed his mood then he went to sleep I have been trying to make it work for hours with no luck I feel miserable and empty because I want him to watch the shows that he loved before a major event that caused my dad to leave us we used to watch disney channel all the time and when we got a netflix account and he saw mako he was overwhelmed with joy then when he finished season 3 he looked for shows like Jessie, liv and maddie and other shows that he loved he didn't find them and the look on his face broke my heart I'm thinking of making a hulu account but don't know if I'll face the same problems

  9. Hah, pay more? No thanks, this is why piracy is back on the rise. The general populace will turn on these companies the way they turned on them in the early days of Netflix.

  10. Heard of torrents? They will pick up steam in no time and the good old days of kickass torrents and Napster will be back…

  11. He really thinks netflix doesnt make a lot of money of stranger things sis i bet it makes more money then 2 movies from other companies

  12. There's only so many shows the average consumer has time or will care to watch. I don't think many people will feel the need to have more than 3 streaming subscriptions. If they're 8-15 a piece let's say that's like $30 a month for an abundance of content. That's pretty good considering cable is easily $60 to start. I think this is just a problem for the types of people who don't just like certain shows but want to be in all the pop culture conversations to the extent where they made their careers writing about entertainment. Just ask your company to reimburse it as a business expense, dude.

  13. No, I don't even allow my kids to watch Disney. Not only that, but the evil cable companies sure didn't learn anything about why people cut their cords to begin with. Simple greed. I will remain loyal to Netflix, because they had the foresight before anyone else.

  14. 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☹️

  15. 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

  16. 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.

  17. 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.

  18. 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!

  19. 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

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

  21. 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

  22. 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

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