Wednesday, November 13, 2019

Content is King

The new video streaming service "Disney+" recently launched. This afternoon I looked at Disney's stock price and it rose $10/share. Coincidentally I looked at Netflix stock and it dropped $10/share over the same period. You have to wonder if there is a correlation.

I currently don't have any streaming video subscriptions nor do I plan to sign up for any but I have to admit that if I did, I would start with Disney+. Why? They have the most content I am interested in watching. If you look at my movie collection at home, I have a ton of Disney movies. Not just the animated ones but also most of the Marvel and Star Wars collections.

So what is Netflix going to do? Well I have to recognize that Netflix is fairly nimble and has done a great job at adjusting their business strategy based on market changes. I think they will be able to come up with content through their own efforts or through acquisition. There should be a lot of companies merging content in the near future because it doesn't make sense to subscribe to CBS's streaming service and then pay more money for NBC's or a number of other smaller providers.

Today at the office we had a discussion about who is signing up for Disney+ and if they are ditching another streaming video service. Everyone that is signing up for the new service is cancelling something. My own son sent me a message saying that he was getting rid of Netflix for Disney+.

I will be interested to see how Disney+ changes the video streaming market and hope that is spurs collaboration among the smaller players. That is probably the only way some of them will survive.

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