Disney + aiming to overtake Netflix as a streaming platform

If everything goes as Disney expects, very soon Netflix will go into the background as far as streaming services are concerned. It may no...

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If everything goes as Disney expects, very soon Netflix will go into the background as far as streaming services are concerned.

It may not happen this year, but with just a few months of launch, Disney + has already positioned itself as Netflix’s main competitor in many years.

With the arrival of Disney +, the supply of streaming platforms, which for years has been commanded by Netflix, not only increased, but also caused certain changes in the way users make use of these services.

Everything seems to indicate that very soon Disney + could unseat Netflix from the ‘reign’ that it has had for years, although the latter continues struggling to stay within a competitive margin.

Will Netflix be able to stay afloat, or will it give in to pressure from Disney +?

  • Although it was the first to arrive, everything seems to indicate that Netflix is ​​constantly losing followers
  • The arrival of Disney + has represented a great challenge for Netflix, and the pandemic could have accelerated the loss of subscribers
  • Meanwhile, Disney shares have risen in value and he hopes to soon unseat Netflix as the ‘king’ of streaming: Can he pull it off?

With the arrival of the pandemic and the mobility restrictions arising from it, logic indicated that Netflix would be one of the services most used by people.

Being inside the house, Netflix was presented as one of the ‘basic’ entertainment services.

After a few months, it has been possible to see that perhaps this scenario is far from the reality of Netflix, at least during the last part of 2020.

In a statement issued by Netflix last Tuesday, the company reported that the earnings generated by the number of subscribers fell to less than 10 million for the first time since the start of the pandemic.

In contrast, Netflix earned $ 2.2 million in revenue over the course of the summer.

Photo: Shutterstock

At the beginning of the pandemic, the Netflix service was considered one of the most successful. Due to mobility restrictions implemented in most countries, the number of subscribers increased considerably during the first months of the health contingency.

In European and American countries, especially the United States, at least 16 million new subscriptions were generated in March; According to an analysis carried out by Netflix, many of these new subscribers belong to the group of people who had to undergo rigorous protection due to the pandemic.

This growth was increasing during the following months, and during April and June Netflix gained an additional 10.1 million subscribers, coming from all over the world.

However, what promised to be sustained growth soon began to show signs of stagnation.

By early summer, what Netflix Considered one of the most productive periods of the company, growth began to slow down.

Between the months of July and September, only 177,000 new users were registered throughout the United States.

Disney +, the culprit of the fall in Netflix subscribers?

The above coincides with the arrival of the Disney + platform and the launches that the platform offered during this period. In early July, Disney + decided to advance the premiere of the musical Hamilton, which had been scheduled for October, and which had the support of a large number of fans of the musical.

This generated great interest in the platform, especially in those users who did not have a subscription to it.

The Disney + offering appears to have contributed to the decline in the number of new Netflix subscribers, although Netflix executives do not view it as a failure, but rather as a natural evolution caused by the pandemic.

Photo: Shutterstock

In a statement issued to Netflix investors, executives stated that “As expected, growth has been slow. We believe this is mainly due to our subscriber records during the first half of the year. “

In essence, Netflix executives are certain that anyone who may have been interested in subscribing to the platform during the year decided to do so at the beginning of 2020; in good part, this accelerated growth from January to March had its origin in the sanitary confinement measures.

Another reason that some connoisseurs have put on the table regarding the Netflix ‘debacle’ is the launch of the movie ‘Cuties’.

This had a negative impact on millions of users, and some believe that Netflix’s reluctance to remove the film from its catalog led to a lack of interest in using the platform’s services.

However, the launch of ‘cuties’, while controversial, does not seem to have an impact on this drop in subscribers.

Of course, the experts also contemplate another factor: although Disney + is presented as a direct competition, the reality is that Netflix has 200 million subscribers worldwide while, currently, Disney + has 60 million subscribers.

Netflix CFO Spence Neumann commented that the company’s overall metrics are “quite positive,” adding: “We’ve had 20 million new subscribers over four years. This year it will be 34 million. So, we will set all kinds of records this year. “

And while Netflix is ​​not currently concerned about a slight decline in new subscribers, it has begun work on a restructuring of its productions.

Recently, the company decided to cancel several shows, the main reason being the high production costs and adjustments derived from the pandemic.

Photo: Shutterstock

The post Disney + aiming to overtake Netflix as a streaming platform appeared first on Hispanic World.

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