Disney and Netflix are following similar strategies to stay ahead in the video on-demand over-the-top (OTT) streaming sector, according to GlobalData.
Strategies of Disney and Netflix include exploring paid-sharing models and venturing into gaming and sports streaming business, according to insights from the Company Filings Analytics database of GlobalData.
Misa Singh, Business Fundamentals Analyst at GlobalData, remarked, “These strategies are geared towards bolstering their top-line performance, and thus far, they appear to be yielding positive results in favor of these corporations.”
Disney plans to spend $25 billion on content (including sports rights) in 2024, down from a record $29.9 billion in 2022. Netflix said it would spend $17 billion on content in 2024.
The annual report of Disney, as of October 1, 2022, disclosed an estimated 164 million paid subscribers across Disney+, Disney+ Hotstar, and Star+.
Netflix, according to its recent transcript, reported 23 million monthly active users.
Netflix outlined plans to introduce a paid sharing option to enhance the streaming experience for paying members and foster business growth.
Disney is contemplating offering paid-sharing features to extend access to individuals beyond the account holder’s household.
Disney intends to notify accounts engaging in unpaid sharing this summer, prompting borrowers to initiate new subscriptions. By late 2024, account holders seeking to grant access to additional individuals outside their household will have the option to do so, albeit with an additional fee.
Netflix announced its collaboration with WWE to bring WWE Live programming exclusively to its platform, commencing January 2025. This deal will see WWE’s Raw broadcast live on Netflix exclusively in the US, Canada, the UK, and Latin America, with plans to expand to other regions gradually.
Disney’s latest transcript unveiled plans for ESPN’s complete channel suite to be directly available to consumers through a new joint venture with Fox and Warner Brothers Discovery, slated for launch in the fall. Moreover, Disney will offer ESPN as a standalone streaming option in the fall of 2025, boasting innovative digital features and establishing itself as a comprehensive sports destination.
Additionally, Disney is poised to acquire a minority equity stake in Epic Games, signaling its entry into the gaming sector. The conglomerate aims to pioneer a groundbreaking games and entertainment universe amalgamating Disney’s iconic brands and franchises.
Netflix is making strides in the gaming industry. According to its latest earnings call transcript, Netflix has launched the Grand Theft Auto trilogy from Rockstar Games in Q4 2023, witnessing exceptional download figures.
Disney and Netflix are strategically adapting to meet evolving consumer demands, shaping the industry’s future. These initiatives transcend mere revenue enhancement, indicating a fundamental shift in streaming dynamics.
“Innovation and adaptability are paramount for sustained success in this dynamic landscape, where content diversity and accessibility are driving forces. Going forward, innovation will remain pivotal to staying relevant in the ever-evolving streaming market,” Misa Singh.
