- Last Active
Disney expects to take massive loses for the first several years establishing a foothold in the streaming marketplace. In fact, Disney already forecast this on their second-quarter earnings call when they told investors that its direct-to-consumer businesses would lose $460 million in the third quarter. Disney has a stated goal of reaching profitability on 2024 with 40-60 million subscribers.
For this reason, I don't believe Disney will increase prices for several years. They are playing the long game with the launch of Disney+, and the bundle package which includes Hulu and ESPN+. Disney wants to be the predominant streaming service and clearly has Netflix in its sights.
What that means for Apple and anyone else entering the space is they also have to be willing to lose massive amounts of money to gain traction, and be one of the top 3 streaming services. Because even with cord-cutting, consumers will limit the number of services they subscribe to. Either that, or they'll rotate subscriptions and binge watch and repeat.
@rotateleftbyte, why do you "hope he fails miserably"? Because he's an advocate for free speech? Because he doesn't agree with the arbitrary and biased way Twitter (and other social media companies) censor the opinions of those often on the other side of the political spectrum?I get it. Musk's personality can be off-putting. But should social media companies, which are the primary source for news for the majority of the population, be able to decide which views are allowed to be expressed, and which ones aren't? Should they be able to make stories disappear (Hunter Biden's laptop) if they deem it to be detrimental to their cause? And should there be no repercussions when posts flagged as fake news actually turn out to be true, while what has been pushed as the narrative is actually false?Americans should be extremely concerned when the actions of Big Tech and our own government begin to mirror those of totalitarian regimes. And that is exactly what has been happening. I'll take free speech any day over controlled speech. I want opinions challenged. I want public discourse and debate. I want to hear all sides and draw my own conclusions. Don't you?
Currently, Netflix stands to lose the most from Disney taking the loss leader approach for the launch of Disney+. And this comes on the heels of Netflix losing popular series such as Friends and The Office, as well as any further licensing of Disney, Marvel and Star Wars content.
Content holds all the value which is why Apple, Disney, Netflix, Amazon and others are pouring BILLIONS into original content. Everyone is banking on coming up with the next must-see series like Game of Thrones or Stranger Things to acquire subscribers.
After the dust settles in a few years, we'll likely see several streaming services shuttered and merges/acquisitions of others for content.
In the end, I hope we end up getting something similar for tv that iTunes/Apple Music was for music - one store where you can get everything for a standard price (X dollars/episode or season) or a streaming option that pays the content providers a percentage of the monthly fee based on what you actually watch.
I look at Apple+ as an incentive by Apple to remain in their ecosystem and buy new Apple products each year.
If you can stack free years of service for every device that qualifies, I'll never have to pay for the service as long as Apple continues this promotion. As a family of four, with 4 iPhones, 1 iPad, 2 iMacs, 2 MacBook Pros and 1 Apple TV, I'll always be upgrading at least one product per year.
And I'm not going to complain about free. So far, only "For All Mankind" has my interest, but I'll give several others a shot to see if they're worth watching.