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Netflix should be worried about new entrants in the streaming market

August, 8 2019

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Richard Rose
Written By
Richard Rose
Topic
content, VoD
The Video-on-Demand industry has transformed the way we consume film and television. But it's about to undergo a transformation of its own. With several huge corporations including Apple and Disney launching their own streaming services, how will Netflix fare in the coming hyper-competitive age for the industry? 

We've just published an extensive piece of research answering this exact question. Complete the form below to access the full report, 'Full Stream Ahead - will new VoD services mean market expansion or stagnation?'.

 

Netflix have sat for some time, largely unthreatened, as the clear industry leader and must be credited for revolutionising video consumption.  Amazon Prime and Hulu are both respectable forces and a preference of many, but have never managed quite the same stake as Netflix.

However, four major corporations are readying their challenge for top spot, planning to launch streaming services of their own over the course of the next two years. 

Apple are currently keeping the finer details of Apple TV largely under wraps but have built hype by announcing original content with some of USA's most-loved actors, actresses and directors, including Steve Carrel, Jennifer Aniston and Steven Spielberg. 

Disney have planned to launch Disney Plus in November of this year. As a company with a controlling stake in Hulu it will be interesting to see how this effects the industry. 

HBO Max, from WarnerMedia, is set to hit laptop, mobile and smart-TV screens in the Spring of next year. With a new series of hit-show Westworld already announced for the platform, and fan-favourite Friends heading back to Warner, the heat will only be further piled on Netflix. 

Finally, NBC Universal have opted for different tactics in their attempt to muscle in amongst this highly competitive bunch. Coming in 2020, they will be offering a free-to-use (ad-supported) destination for a back-catalogue of their content as well as a slate of originals.

It has been heavily publicised that Netflix will be losing its two most-watched shows of 2018, Friends and The Office, to HBO Max and NBC Universal respectively. However, licensed content is only one element of a complex issue. 

Perhaps more important, is the popularity of a platform's original content; the unmissable shows that will drive subscriptions as the only place to view them. 

Furthermore, price will certainly play a part. People have begun to experience 'subscription fatigue' - the market is saturated with subscription services and the public don't want to spend any more of their money signing up for others. This means there is not room in the market for all these services to be successful. 

Disney have undercut Netflix with their price, and clearly NBC Universal have decided to avoid this problem with an entirely different business model altogether. HBO Max will be priced higher so will need to perform excellently on content in order to justify the extra expense.

So, can we expect any of these new entrants to really trouble the firmly established force that is Netflix? 

Well, you'll have to read the full content for our final answer.

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