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Netflix-Disney Breakup- Netflix Will Need More Original Content in Near Future

Recently, Disney announced that it would start its streaming service soon and pull back all contents from Netflix by 2019. Since Disney has already introduced a multimedia subscription service for the UK called DisneyLife in 2015, the Netflix breakup comes off as pretty unsurprising.

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Nonetheless, Netflix understands the pressure to either create or procure a set of movies and shows that replace the gap left by Disney. So far, Disney is the largest supplier to retreat from Netflix. While Times Warner is planning to reduce its sales to Netflix, Scripps Network has refused to renew its deal with the streaming service as well.

Ted Sarandos, Chief Content Officer at Netflix, considers the relationship between both parties(Disney and Netflix) to be closer to frenemy-nature. Sarandos expresses his confidence in the entertainment company and ensures that they are prepared for a Disney-less future. Sarandos also lets it slip that Netflix may just be moving on from major media companies altogether.

Industry experts brush away any idea that considers Disney’s withdrawal a factor that may impact Netflix subscriptions negatively. However, an immediate effect will be seen on Netflix’s movie selection in the US. While the deal between Disney and Netflix is set to end, nothing concrete has been heard about Marvel and Star Wars movies.

Netflix creates over 1000 hours of original content a year. The majority of its subscribed users reside outside the US and don’t get access to Disney movies. Films end up contributing to only about 30% of the viewing on Netflix, while the rest is series, including Netflix Originals like Stranger Things. Disney and Pixar provide Netflix with hit content that keeps a part of its viewers from unsubscribing.

The situation with Netflix isn’t grim yet. If the streaming service giant is indeed planning to free itself from any media company connection, producing more and much better original content does seem both appropriate and benefiting.

 

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