Due to its specific content and low price of $6.99 per month, some rumors have spread that Disney+ could prove to be a threat to Netflix.
However, due to its rising popularity and an increase in spending on content, I don’t see this being a genuine threat to Netflix in the near future. With the likes of Amazon Prime, Hulu and even Youtube fighting for the online streaming business, Netflix has yet to take a serious hit.
According to an article from Variety.com, Netflix spent “$12.04 billion in cash on content last year, up 35% from $8.9 billion in 2017, according to its fourth-quarter 2018 earnings report.”
In the third quarter of 2019, Netflix reported that it had over 158 million subscribers, as well as 5.5 million in free trial subscriptions, as stated by statista.com.
Even though Netflix prices have increased over time, their loyal fan base has stuck around. When Netflix started, the monthly subscription began at $6.99 and has now reached $8.99 a month for the basic package going up to $15.99 for the premium subscription.
Yet due to its limited access to Netflix, the Basic plan is the least popular; influencing customers to buy the more lucrative (for Netflix) deal.
Disney+ will, however, have great success, but I do not think it will be at the expense of Netflix being critically hit because of it. If most customers and people feel satisfied with Netflix but also want Disney+, I don’t see individuals completely leaving Netflix but having both services.
We live in a time where binge-watching is a daily norm, and it this point socially accepted.
So why would customers give up a service they’ve grown up on to go completely give it up for something new?