Although Netflix remains to be the biggest streaming platform despite competitions from Hulu and Amazon, the company is set to face the toughest competition when Disney+ launches later this year. Interestingly, Netflix’s content chief Ted Sarandos has claimed that subscribers won’t be leaving the platform despite increased competition.
While it’s too early to tell, Netflix is facing some tough time ahead as Apple, NBC Universe and WarrnerMedia are all set to compete in the same market. Most importantly, Disney is set to launch Disney+ later this year with half of the price of current Netflix subscription which should give customers to reconsider their Netflix subscription.
Despite that, Sarandos said, “The thing that’s interesting about all these upcoming services, as well as the services that are in the market today, is that mostly they have none of the same programming. Nothing that’s on Disney+ is going to be on Netflix and nothing that’s on Netflix is going to be on the [Comcast and WarnerMedia services]. They’re going to be very unique. … I think it’s very likely that [users will] add things.”
While Sarandos makes an interesting point, we will have to wait to find out how the streaming market changes in the coming years. For instance, the company increased the subscription price last year and a recent poll revealed that users are unsatisfied with the change. However, same poll suggested that people don’t mind paying increased price if they continue to receive commercials free contents.
That’s where the Netflix’s main problem lies ahead. With the company set to lose a whole lot of contents from the network in the coming months, it’ll be forced to bring more original contents which might or might not be successful. Moreover, as the production costs rise, the company will be required to increase the price of its current plans or introduce an ad supported plan to offset the production budget going forward. However, Netflix said that the platform will always be commercials free.
At the moment however, Netflix remains to be the biggest streaming company and it’s unlikely to change over next few years. Most importantly, as the company moves forward, it’s more than likely to bring more originals to keep audiences interested in the platform. As Sarandos points out, this means Netflix and other streaming networks will have different contents altogether meaning viewers are more than likely to keep their ongoing subscriptions.