Next:The Battle of the Streamers

 Netflix: more subscribers than Amazon Prime, Hulu, Sling, and YouTube TV

The cinema industry is trying to defend the theatrical release window from the likes of Netflix - on the other hand, Disney and AT&T are developing their own content streaming models to battle Netflix.

Problem for the last-to-the-table streamer hopefuls is the cost to get into the game. For Disney+ (the current name of Disney's upcoming subscription streaming service) the 'admission fee' to enter the streaming game to compete against Netflix will easily exceed $3 billion and potentially lots more.

Yes, Disney has the franchise brands: Pixar, Marvel, Star Wars, soon, National Geographic, and the Fox's entertainment assets (for which the Mouse House is paying a whooping $71.3 billion), but is this enough and is Disney stretched too thin in terms of financial and people assets to pull-off a revolt against the King-of-the-hill in subscription content streaming.

With over 137 million subscribers worldwide, Netflix is the King-of-the-hill in the world of content streaming. It would take a monumental effort to unseat it. Even Disney is not up to the task as far as CMG is concerned. 

Disney will have to undercut Netflix's monthly fee, at least initially, to gain market. Which would mean a subscription priced at around $8 per month.  That would equate to big-time losses, as it is rumored Disney has committed to spending over $100 million just for a live-action Star Wars show.  Additionally, Disney will take a $400 million hit not renewing its current content deal with Netflix which expires at the end of this year. And given Netflix's dominant market position, it will be hard for Disney to acquire and keep subscribers.

Netflix is spending over $2 billion this year for content. It is not saddled with legacy studio expenses nor theme parks, and certainly not ESPN and its atrocious sports rights deals, which have plagued Disney,  Thing is, Disney has no choice but to get into the streaming mix, as that's where the future in entertainment lies. My hunch is that Disney will always be a marginal player in the streaming content business and never obtain dominance.

Jim Lavorato
Cinema Mucho Gusto