Will Loss of Disney Movies Kill Netflix?
by EG
Netflix is pouring almost all of its vast resources into developing its own original content, but that might not be what subscribers want. A new poll suggests that Netflix could lose a devastating portion of its customer base when Disney+ drains most of the big-name theatrical movies from Netflix's catalog later this year. Read on for details.
If there was a movie trailer being made about Hollywood's escalating streaming wars, it might begin with this dramatic narration: "In a world where Disney, NBCUniversal, Apple and WarnerMedia are hoping to take down Netflix, can the service afford to lose many of its most popular TV shows and movies?"
That's one key question as the rest of Hollywood plays catch up to Netflix's 149 million-plus total global paying members. And it appears that the impending departure of Disney films from the service — namely its Marvel Studios and Star Wars titles — could make a dent among Netflix subscribers, according to a new Hollywood Reporter/Morning Consult poll. (The nationally representative survey was conducted among 2,201 adults from May 2 to 5.)
Some 22 percent of Americans in the new poll said they'd cancel their Netflix subscription if Disney's Marvel Studios films (like Black Panther or Avengers: Infinity War) were removed from the platform. And 20 percent said they'd drop the streamer if Lucasfilm's Star Wars movies left the service.
Of course, over the past several years, Netflix has been spending billions on original film and TV content in order to decrease its reliance on many titles it licenses from traditional media giants.
Meanwhile, Disney is planning on launching its streamer, Disney+, on Nov. 12 this year at a cost of $6.99 monthly (lower than Netflix's standard $12.99 rate). The entertainment giant has aggressively touted its foray into the direct-to-consumer space, with CEO Bob Iger noting in a May 8 earnings call that Marvel's Avengers: Endgame — the top grossing movie of the year worldwide so far — will land exclusively on Disney+ on Dec. 11.
On the TV side of the equation, about 14 percent of poll respondents said that if The Office were removed from Netflix, they'd cancel their subscription. Meanwhile, some 11 percent of Americans said they'd drop the streamer if Friends left the platform.
Both shows are frequently mentioned by third-party analytics firms as among the most watched titles on Netflix — and both could eventually depart the service. In December, the streamer was said to have inked a $70 million to $80 million deal, sources told THR at the time, to keep Friends on Netflix through 2019 but also giving owner WarnerMedia the option to include it on its own service in 2020. Warners head of content for its direct-to-consumer offering, Kevin Reilly, told reporters in February that the company would eventually like its "crown jewels" library titles to be exclusive to its own service.
Get the rest of the story at The Hollywood Reporter.
Will you cancel your Netflix subscription when Marvel movies leave the service? Let us know in the comments below.