Good Day to all the Geek Enthusiasts and Nerd Aficionados!
Oh Disney – the purveyors of what’s mine is mine have done it again. They are now canceling their partnership for all movies streaming on Netflix. For what reason? They’ve decided that they want to get into the streaming game themselves, and have another service that you will need to pay for in order to watch their movies.
Disney makes a move
This is not an abrupt move by Disney. They understand it’s going to take some time to get the streaming service up and running. The contract with Netflix won’t officially be ending until 2019.Until then Disney is putting the pieces in place. Disney plans to have their streaming service launched sometime in 2018. Followed by an ESPN streaming service in 2019.The Disney streaming service will be the only place you can stream the current new crop of Disney and Pixar films coming. These include titles likes Toy Story 4 and the live action Lion King. The new streaming service will also include content from The Disney Based television networks (Disney Channel, Disney Junior, Disney XD). The only thing that Disney won’t be pulling from Netflix is it’s original Marvel programs.
How does this effect Netflix?
The initial reaction to this is “Oh No! Netflix just got screwed!” Especially when looking at the stock after the announcement was made. Netflix saw a 5% drop in stock just from the announcement. Imagine what will happen when this is finalized. In the long run though this won’t affect Netflix much. They are keeping their biggest draw from Disney, in this case their Marvel based TV Shows. Netflix has been through problems before. Raising prices saw many subscription cancellations. Moving away from DVD, and focusing completely on streaming. This sent a large number of people to Hulu seeing as they felt there wasn’t enough on Netflix streaming. Just like the famous line in The Godfather 3 “Just when I thought I was out. They pull me back in.” Netflix has done this time and time again by making deals with companies for their content to stream, while also bringing star studded Emmy caliber original content. Disney cancelling their contract is not going to hurt Netflix in the long run.
The House of Mouse Digital
What plans has Disney put in place to achieve this new endeavor? The first was announcing that they were doing it. The second Disney went and purchased controlling stock in the company BamTech. Spending $1.58 Billion on the company gave them a controlling ownership of 75%. What does this do for them? BamTech is a video streaming company that was created by Major League Baseball (MLB). This gives them an already established streaming company. None of the headache of working out the bugs. Along with getting the service up and running, Disney plans to put together new content that will be exclusive to the service. Disney TV shows and Movies that you can’t get elsewhere will bring the fandom flocking in droves. Speaking of fandom what does this mean for us?
The personal impact
First and foremost if you’re a fan of original Netflix content and all things Disney, set some spare cash aside. You now will be paying another fee for streaming. Netflix isn’t going to lower it’s prices to accommodate, and Disney needs to make back that $1.58 billion they spent. This is also Disney we are talking about – which generally means things come at a premium. The pricing for the service will probably be in the range of $11.99 plus, in addition to a package price that gets you the Disney service and the ESPN service when it rolls out. Disney continues their isolation here as well. They’ve purchased LucasArts and Marvel as well in the last few years. Now they are taking their films to a place where only they can hold on to them. This mentality resonates much more with fans of Star Wars and Marvel that attend SDCC.
The future (-land)
Disney has slowly taken those two franchises away from things that they themselves don’t control. They are doing the same here. Sure the Marvel shows are still with Netflix now. Disney won’t be able to take these away, however they can make sure any new properties for Marvel on a streaming service end up with theirs.
What are your thoughts about this? Is it another power play for Disney that makes it harder to enjoy them? Was this the right move, and should have been done sooner? At what price point is it too much for you to say I won’t spend it? Let us know in the comments below. If you like our content make sure to follow us on all platforms and check out our ever expanding YouTube library. Follow Malice Corp on Twitter, Facebook, and Instagram. Feel free to follow me on Twitter and keep Nerding On!!