Search

Commentary on Disney+ Stream launch



This is all a media bidding war as customers switch from cable cutting of subscriptions that are reported to be in “free-fall” and the change in consumer behaviors towards binge viewing and streaming on mobile devices and home TV sets.

Disney+ is a significant entrant in this fight to monetize existing and new content with its massive back catalog of Star Wars, Marvel and decades of Disney films to win over customers.

This is what Disney+ called "Direct-to-consumer" that gives a tectonic shift to the production media industry as content and intermediaries are shifted toward huge technology brokers and entertainment brands control with their customer base. This model has strengths in direct monetization and pricing control as seen by Apple and Disney+ lower-than Netflix pricing that is good for consumers perhaps but reflects a huge shift in commercial power and monopolization.

The money involved is astonishing with the recent announcement of Netflix signing the Seinfield comedy show that was from the early 1990s for a reported $500 million deal to secure the online streaming rights to all 180 episodes.

Clearly, this is a big-bucks business with global syndication in a worldwide audience that maximizes the Internet audience today.

Following the Netflix model, Amazon, Apple, HBO, Disney, and the others with the deep pockets to fund new content as well as bid for rights management will create a “super-league” of providers that the likes of BBC and national TV will pale into insignificance and just become a streaming outlet. It's very questionable if this monopolization in the long term is a good thing beyond the saccharine volumes of average content and the blockbusters will promote more of the same. I suspect it will lead much as we are seeing in the younger next generation a paradoxical challenge of “flipping” in and out of streamers and a counter-culture of alternative entertainment and viewing that might reject the “viewing fodder” that these goliaths bring. This sounds like a condition ripe for innovation to break out and push new types of gaming and streaming interactive media that might see what some Analysts predict as an oncoming fall out of huge financial losses in the volume of average mediocre programming content that fails to return viewing figures and the fall out from this.

1 view
  • Black Facebook Icon
  • Black LinkedIn Icon
  • Black Twitter Icon
  • Black YouTube Icon

© 2020 Artificial Intelligence Innovation Network, Warwick Business School, UK