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Disney surpasses Netflix in global paid streaming subscribers
- madelyn 4y agoContent is queen. I cancelled my Netflix but Disney Plus is just worth keeping, even with the price hike coming.
- christoph 4y agoSame. It’s worth noting Disney only has a single plan which includes 4K, HDR, Atmos, etc, and in the UK is far cheaper - Netflix charge nearly £200 a year for their 4K plan (£15.99 x 12). Disney is less than half that on a yearly plan for £80. Netflix is just simply massively overpriced now, in my opinion, even before you dive into the massive content advantage Disney have - almost everything ever made by Disney, Pixar, Star Wars, Marvel, National Geographic and the then the massive Star catalogue, which actually has a ton of decent movies and tv shows, new and old. Content is obviously highly subjective, but I lost track of the amount of times I’d open Netflix and spend 10 minutes struggling to find something worth watching in their annoying UI.
- kache_ 4y agoit's ogre :[ gz to disney plus team
- routerl 4y agoI remember when Netflix began to produce their own shows and movies, some C-suite exec saying something like "we're gonna become HBO before they realize they need to become Netflix". I.e. vertically integrated content production and distribution. Well, wrong target I guess. Disney has always been the big player in this space.
- bombcar 4y agoTurns out it’s much faster for a content producer to spin up a Netflix clone than vice-versa. Some of this is not realizing just how much technology has advanced since Netflix was first mover - second mover often has much less problems in the area (especially as someone has already done the heavy work of showing it can be done).
- plorkyeran 4y agoYeah, building Netflix when they first got into streaming was a massive technical undertaking. There were a lot of companies who tried very hard to do streaming video who just never got it to work well enough. Building a Netflix clone is still certainly not trivial by any means, but it's probably an order of magnitude less work than it was ten years ago. When they first shifted into original content production it didn't make sense for HBO to even try to compete with them, but those days are clearly long one.
- dralley 4y agoAn ironic statement considering HBO has been doing vertically integrated content production and distribution for a pretty long time (though it took them a few years to take streaming seriously).
- omegalulw 4y agoNot a wrong target at all. Streaming is pretty much a solved problem now and Netflix is competing mostly on content.
- encoderer 4y agoA nice headline but Netflix could probably add a lot of subs if they dropped prices down to $7.99 where Disney has had them.
- pipeline_peak 4y agoThe only way they can do that is with ads.
- zinekeller 4y agoPossibly misleading title? Still significant, but it includes all subscriptions including Hulu and ESPN+. Also did Disney account for possible overcounting (for example, there could be separate Hulu and Disney+ subscriptions and didn't took advantage of the bundle) or not?
- pipeline_peak 4y agoDisney owns ESPN
- Rebelgecko 4y agoRight, Disney sells a bundle of Hulu, ESPN+, and Disney+. If you buy that bundle, it sounds like you'd be triplecounted
- skinnymuch 4y agoDisney+ doesn’t own ESPN+ and Hulu. The clarity makes sense. Disney owns Hulu too.
- candiddevmike 4y agoHow many folks are on the sweetheart deals Disney Plus had before they launch? I know I prepaid for at least two years, I think. Will be interested to see who sticks around.
- radicaldreamer 4y agoThere were at least two 3 year promotional plans prior to launch that dropped down the effective price to under 5 dollars/month and under 3 dollars/month. Those are expiring in November, right on time for the rate hike.
- underyx 4y agoI'm using an Amex offer that gives 100% cashback on Disney+ subscriptions. Sounds like another fun way to game these numbers.
- bombcar 4y agoI wish I could retroactively apply it.
- CharlesW 4y ago> I'm using an Amex offer that gives 100% cashback on Disney+ subscriptions. Sounds like another fun way to game these numbers. That "gaming" might be considered by some to be basic co-marketing and business development (which Netflix does too, of course). You've hit on a crucial point, though — Disney has an order of magnitude more relationships, subsidiaries, products, etc. to leverage than Netflix does. By 2025, Netflix will have been acquired by someone who can compete with that.
- EddySchauHai 4y agoI can see this. Disney has some absolutely amazing content for many different groups of people while Netflix has become boring and stagnant. Nowadays I assume what I'm wanting to find isn't on Netflix and go straight to Prime to rent anyway. The only other competitor in terms of quality of content with their own content is probably Apple TV, with Ted Lasso and For All Mankind.
- skinnymuch 4y agoThat’s wild. Netflix makes so many more shows that are well received than Apple TV. Apple TV is tiny relatively speaking. Amazon, HBO Max, maybe Discovery+, make enough content for streaming in enough quantity (so there’s enough higher quality stuff) that Apple TV can’t easily surpass them. Some shows are basically streaming shows now any way even if they technically go on HBO at 11 pm or something (thinking of something like Nathan Fielder’s own show and the show he exec produces).
- bombcar 4y agoApple TV doesn’t have to surpass. They’re pricing themselves low enough to be everyone’s second choice, and low enough that you won’t bother to cancel. It’ll grow.
- skinnymuch 4y agoIf Apple can keep it at $5, yeah. I’m not sure why Apple TV at $5 would make more sense than any other major streamer (or at least HBO, Disney+ (depending on who you are), Netflix, or Hulu at $8 with ads. Apple TV doesn’t have a negative reputation yet. Imo that is helped by their limited scope (Apple users only) and low price as you mentioned. It still doesn’t and doesn’t have any immediate plans to try to get that much bigger (based on their budget). OTOH, when every one else has gone to at least $10 even with ads, then yeah $5 for Apple TV is crazy cheap. Though a ton of people have Amazon Prime and it doesn’t appear to get talked about too much or be a major deal for Amazon. They’re sinking a good amount of money into it too (thinking LOTR show and MGM $8B acquisition). Netflix specifically has gotten a particularly bad reputation on HN in recent years. The number of comments relentlessly shitting on it have gone up a lot. Much like Apple TV’s general rep on HN is usually neutral/on the outside or positive.
- gregdoesit 4y agoWhen I took my kid to Disneyland for the first time, I got the question on the way “dad, can we go to Netflixland as well?” This question from a kid made me realize how much of an entertainment empire and revenue generator Disney is versus Netflix. With Netflix, buying the monthly streaming service is the most you’ll spend. With Disney, it’s likely the least: the toys (with Disney royalties), the movie tickets for the family and finally - for some - a Disneyland trip where we dropped more over a few days than my lifetime Netflix spending will be. The amount of investment that went into making Disney what it is today is incredible, and Netflix has a lot of catching up to do. Will there ever be a ‘Netflixland’? Does Netflix even want to compete with Disney, head-on-head?
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- kgc 4y agoNetflixland is actually a great idea. I would go.
- JoshGlazebrook 4y agoImagine a stranger things themed section of a Netflix park. $$$$
- siod 4y agoIt honestly feels like the technology advantage Netflix enjoyed has all but disappeared. Content is now king and all of the other production companies have been making content for decades, Netflix is in serious trouble if it doesn’t lift its game.
- xupybd 4y agoI find that Disney doesn't have better content, but it has new content. I've had Netflix for years and watched most of the stuff I liked. I got Disney and they had Castle. That's kept me going for months and I've not used Netflix since.
- skinnymuch 4y agoYou’re primarily watching one show? Realistically, any streaming service has a chance at providing that, no?
- dr_dshiv 4y agoSeriously, for me it’s the opposite. Disney has classics. I cant not have all of the Simpsons. Or every Pixar film? It’s just too good. Netflix has new stuff but it gets old faster.
- xupybd 4y agoYeah it has 8 seasons. I tend to watch a show from start to finish as it cuts down the time spent hunting for something to watch. You're correct that any streaming service has a chance at providing a show I'd like. That's the problem for services at the moment. Netflix has a huge catalogue but I've watched the shows I like. Disney has a smaller catalogue but happens to have a show I can watch with my wife. So that's the one we like at the moment. They don't differentiate on anything else for me. They both work well enough. That said Disney is not on my spart TV so I have to use the Chromecast.
- bombcar 4y agoOne show wonders aren’t a bad way to go - and I think this is how Apple+ is going to come in submarine. Price it cheap enough that no matter who you have as #1, you have them as #2.
- madrox 4y agoWorth noting that they're surpassing Netflix by including ESPN+ and Hulu subs, so many customers are getting double or triple counted. It isn't just Disney+. Also, Disney has made a lot of partnerships to promote and sell subscriptions, such as through Verizon, which is usually how they end up growing their numbers so quickly. They usually include guaranteed minimums and I'm not sure how that's affecting this number. If I were an analyst, I'd love to know what percentage of subscriptions are coming through those deals, as they don't tend to create sticky customers. Still an impressive achievement given how relatively new the service is, though. It's a testament to what a well oiled machine Disney is and their ability to pivot into new services.
- pipeline_peak 4y agoDisney owns ESPN, has for a long time
- madrox 4y agoIndeed, and ESPN has always been far and away the largest source of revenue. In fact, the earnings call where Disney beat expectations but cable subs to ESPN dipped by half a percent saw a total run on the stock. ESPN+ is what they're hoping to wean cable users onto. I suppose I should disclaim that I used to work there :)
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- adoxyz 4y agoAnd Disney owns 67% of Hulu.
- jjcon 4y agoRight, which is why they probably shouldn’t be double or triple counting subscribers.
- aardvark179 4y agoMaybe they are double counting Hulu and ESPN subs in the US, but not internationally. We don’t get those services at all in the uk and are slightly bemused when Disney proudly announce the more adult series that are now on Disney+ because we’ve had them for months.
- ycta2022081011 4y agoI predicted this would happen as soon as Netflix raised prices earlier this year. They have over 220 million global subscribers, almost the population of the entire United States, but think they aren't making enough money and are investing the money they do have into hair-brained projects like mobile games. If Netflix just focused on stabilizing and returning steady profit, instead of infinite growth and inflating their stock price, they would be in a much better position than they are currently.
- echelon 4y agoIf they don't grow the pie now, their TAM will be locked forever. Too little too late. They got utterly routed by Disney.
- thfuran 4y ago>If they don't grow the pie now, their TAM will be locked forever. So what? Very nearly every successful business in the history of the world has had fewer customers than Netflix.
- echelon 4y ago"So what?"? They could have had it all. Every company wants to grow as big as it can. Netflix could have been the total entertainment package and had near monopoly power. They played their cards wrong, and now their incredible growth story looks to be at an end. They're going to be bumping up against the HBOs of the world, meanwhile Disney will leapfrog them and grow into what Netflix wanted to be. Your kids will be buying Star Wars merch and games and demanding to go to Disney World. Every house needs the Mouse, but Netflix is just another Paramount+. At this point even Amazon and Apple will steal eyeballs and make Netflix's product look less appealing and less worth the cost. Disney is what Netflix wanted to become. Now they have to fight for a smaller, more humble market. They're boxed in. Nobody will fund a bigger vision. The big dream is dead. Long DIS. Short NFLX.
- glenstein 4y agoHow much is Netflix investing into mobile games compared to original content programming?
- gerdesj 4y agoWhy is this here? It's not exactly news for nerds nor is it news for investors - there are plenty of other sources. This article is an advert (try scrolling down) and wankery and very boring. "Why it matters" is pure comedy.
- bombcar 4y agoBecause FAANG is set to become G’DAAM.
- MikusR 4y agohttps://www.theverge.com/2022/8/10/23300460/disney-plus-price-increase-ads-streaming https://www.theverge.com/2022/8/10/23300460/disney-plus-pric...
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- anideafornow 4y agoHonestly, the spin that I typically see just feels steeped in bias: "Netflix has nothing _I_ want to watch, therefore it is catering to no one and doomed to failure". I imagine Netflix has a really good grasp of the content landscape and is playing a bit of moneyball with that. Sure, reality TV is not everyone's cup of tea, but it may have a larger audience:budget ratio than other projects, thus being an important asset in a content portfolio. Let's not forget the Bridgerton's and shows of the like, whose appeal probably inversely correlate with that of Star Wars for a particular viewer, in aggregate. I think an analogy to the gaming sphere is apt. You are not going to sell RTS's to people who play visual novels. And furthermore, in the MMO arena, there is also the dichotomy between those who play the game at a leisurely pace and those who consume end-game content as if it's their job. All of these different segments exist, yet how best to allocate resources among them is the true question. I do think disregarding a niche would be a mistake if one is truly chasing growth but it is also a balancing act. Essentially, Netflix is Steam, but forced to take on a much larger publisher role.
- NaturalPhallacy 4y agoSuch a bummer because to my knowledge Netflix is the only streaming service that doesn't advertise crap that you have to sign up for other streaming services by including shows that you can't actually watch on it. Every time I see a show on a streaming service that I can't actually click on and watch I return to the high seas and with Sonarr/emby.
- siquick 4y agoDisney+ in Australia definitely doesn’t do that.
- stjohnswarts 4y agoI knew this was inevitable, but I didn't expect it _this_ soon.
- prirun 4y ago"Disney's direct-to-consumer segment lost $887 million last quarter, the most since the quarter when it first launched Disney+ at the end of 2019." https://www.axios.com/pro/media-deals/2022/08/10/disneys-streaming-losses-widened https://www.axios.com/pro/media-deals/2022/08/10/disneys-str...
- donkarma 4y agonot paying for streaming services anymore. happy to pay for netflix but having to go all over the place is insane when i get much better service by fucking pirating
- gentleman11 4y agoNotably, this isn’t a case of Disney out competing Netflix. This is a case of a company that got rich off of good content decades ago simply buying almost every large video entertainment service around until it Defacto owned most of said entertainment world. Just give it a few years and maybe they’ll even buy pornhub
- vivegi 4y agoNetflix is overpriced relative to other streamers and they are going to have a problem with customer churn induced by streaming fatigue and price pressure with the streaming marketplace getting very crowded. COVID theatrical closures made it look like they were fundamentally doing very well. If that factor is removed, the current strategic headwinds facing them would have been apparent much earlier. Netflix could try pay-per-view instead of or in addition to the ads model. TVOD is a very small segment of total entertainment industry's streaming revenues and obscured largely by the success of SVOD driven by Netflix's trailblazing past and AVOD/FAST adoption by competition. It may become the Blockbuster rental of the 21st century for the long-tail of videos, the business model they disrupted with their arrival. Amazon Prime Videos is doing some of that (and so is YT and others). But there is room for Netflix to innovate here to capture even the blockbusters (i.e., the fat part before the long tail). (Theatrical | Direct to stream) -> NFLX Pay-per-view TVOD catalog -> NFLX SVOD catalog + NFLX AVOD catalog. They could potentially sign up deals with theatres (and include technology) for special screenings reserved for the NFLX pay-per-view customers to watch the film on the large screen. Some cannibalization of SVOD revenues will happen. But it would also force their competitors to play by the new rules instead of NFLX being totally reactive as they are finding themselves now.
- shabin5785 4y agoThis should be powered by the IPL subscription in India for Disney. Thats huge.. But from this year, Disney lost the rights for ipl streaming. And numbers should come down..
- kramerger 4y agoNetflix: Star Wars is cool, but have you seen our new exclusives? Chicago Librarians Chicago Janitors Chicago City Planers I mean, I could go on...