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Why don't Disney and Netflix come to an agreement where Netflix offers a Disney-only channel? Each company can then concentrate on their core competencies: Dis

by MarkMc 9y ago

Why don't Disney and Netflix come to an agreement where Netflix offers a Disney-only channel? Each company can then concentrate on their core competencies: Disney can focus on creating content, and Netflix can focus on displaying it to people.

Consultant32452 9y ago
Hulu would be a better choice for that type of arrangement. They already have an add-ons framework for things like HBO. Prime also has this set up.
Noos 9y ago
why should Disney make Netflix richer? Netflix for Hollywood was just a middleman that siphoned away their profits. Disney is just removing them from the equation because they feel they can run their own streaming service and capture more value than they provide. You only use middlemen when you have to, and they decided they don't have to any longer. And this lets them charge more and give customers more value too. A $30 a month sub with access to everything makes more sense than slowly rotating old shows for a $10 sub.
- MarkMc 9y ago
  Disney should make Netflix richer because they have no reason to believe they can do the following things better than Netflix: streaming gigabytes of data over the internet to millions of users, collecting payment and handling customer support. It's the same reason that Disney doesn't operate its own movie theatres: it doesn't have any competitive advantage in this area. Disney can offer "a $30 a month sub with access to everything" through Netflix. That is, Netflix would offer a 'Netflix channel' for $10 per month or a 'Disney Channel' for $30 per month. Keep in mind that Netflix doesn't have much bargaining power - if they ask for more than say a 7% cut of that $30, Disney can just build their own streaming service for around 7%. Therefore it's in Netflix's interest to offer to host the Disney streaming channel for a percentage that is just a bit less than would cost Disney to build their own streaming service.
  - otterley 9y ago
    When Disney bought BAMtech (which was part of that announcement), they got just that: a battle-tested, state-of-the-art content delivery platform capable of streaming of millions of simultaneous viewers. As for customer support, Disney has always been excellent at that. Go into a Disney store or theme park sometime for an example. Heck, they invented the "customer is a guest" service concept (outside the hotel context).

by MarkMc 9y ago

Consultant32452 9y ago

Hulu would be a better choice for that type of arrangement. They already have an add-ons framework for things like HBO. Prime also has this set up.

Noos 9y ago

why should Disney make Netflix richer? Netflix for Hollywood was just a middleman that siphoned away their profits. Disney is just removing them from the equation because they feel they can run their own streaming service and capture more value than they provide. You only use middlemen when you have to, and they decided they don't have to any longer. And this lets them charge more and give customers more value too. A $30 a month sub with access to everything makes more sense than slowly rotating old shows for a $10 sub.

MarkMc 9y ago
Disney should make Netflix richer because they have no reason to believe they can do the following things better than Netflix: streaming gigabytes of data over the internet to millions of users, collecting payment and handling customer support. It's the same reason that Disney doesn't operate its own movie theatres: it doesn't have any competitive advantage in this area. Disney can offer "a $30 a month sub with access to everything" through Netflix. That is, Netflix would offer a 'Netflix channel' for $10 per month or a 'Disney Channel' for $30 per month. Keep in mind that Netflix doesn't have much bargaining power - if they ask for more than say a 7% cut of that $30, Disney can just build their own streaming service for around 7%. Therefore it's in Netflix's interest to offer to host the Disney streaming channel for a percentage that is just a bit less than would cost Disney to build their own streaming service.
- otterley 9y ago
  When Disney bought BAMtech (which was part of that announcement), they got just that: a battle-tested, state-of-the-art content delivery platform capable of streaming of millions of simultaneous viewers. As for customer support, Disney has always been excellent at that. Go into a Disney store or theme park sometime for an example. Heck, they invented the "customer is a guest" service concept (outside the hotel context).