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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
by 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 agoWhen 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).