Streaming TV war kicks into high gear with Apple, Disney launches
SAN FRANCISCO (AFP) – The streaming television war is set to enter a new phase as titans Apple and Disney take direct aim at market leader Netflix, vying for consumers abandoning their cable TV bundles for on-demand services.
The shift away from “linear” television is likely to escalate with powerful new entrants to streaming coming this year and in early 2020.
The new landscape has important implications for longtime segment leader Netflix, which is now locked in a battle with deep-pocketed rivals for actors, directors and producers to win and keep audiences.
“The Cinderella ride that Netflix has been on has some stormy weather ahead,” said Wedbush Securities equity research managing director Daniel Ives.
“You are talking about some of the biggest brands in technology involved in this battle.”
An Apple TV+ service will launch Nov. 1 in more than 100 countries at $4.99 per month. Apple is spending heavily on new content and promises a “powerful and inspiring lineup of original shows, movies and documentaries.”
Entertainment colossus Disney will launch its own online streaming service, chock full of popular franchises such as “Star Wars” and Marvel superheroes, on Nov. 12 in the US, Canada and the Netherlands, before rolling out worldwide.
And more competition looms on the horizon, as AT&T’s WarnerMedia will launch its “HBO Max” in early 2020 after reclaiming the rights from Netflix to stream its popular television comedy
“Friends.”
NBCUniversal’s Peacock service is also launching next year.
Disney chief executive Bob Iger told investors on a recent earnings call that “nothing is more important to us” than the Disney+ platform.
As well as offering Disney’s enormous back catalog, including all animated films and Pixar movies within its first year, it will feature freshly commissioned shows. It will cost $6.99 a month in the US.
Netflix, which began streaming television to subscribers online some 12 years ago, has so far stayed ahead of Amazon Prime and Hulu, key rivals in the US market.
Netflix chief executive Reed Hastings said he is unfazed by the new rivals.
“Disney will be a great competitor,” he told analysts recently. “Apple is just beginning but, you know, they will probably have some great shows too.”
The budget for original shows at Netflix this year is $15 billion, and the California-based company this week announced plans to issue $2 billion in notes to have more cash for uses including creating and acquiring content.
Ives said Netflix remains the leader until proven otherwise.
“Netflix is on the top of the mountain and will continue to be the leader, but there are legitimate opportunities for number two and number three players with Apple, HBO, and Amazon in the running,” the analyst wrote.
Big-name entertainment industry talent has been recruited to make shows for the competing services, and Netflix is also showcasing local talent from countries around the world.