Yesterday, Disney CEO Bob Iger announced that in 2019, Disney will pull all Disney and Pixar branded content from streaming giant Netflix, and unveil their own direct-to-consumer streaming product. But how could this effect Netflix you might ask? Disney alone pulling content might not effect them directly, but what Disney just did may have started something bigger than anyone knows.
Assuming that other media companies follow Disney (and that’s likely), Netflix might only be left will small movie studios and television studio productions as well as original programming. Say that, for instance, Disney, Universal, and Warner Bros. all pull content from Netflix so they can create they’re own streaming service. Netflix would essentially be left with original programming.
Netflix saw this coming though. That’s the sole reason they dumped billions into producing they’re own original content, and will likely increase the spending and production after this announcement.
While I don’t think Netflix will be going out of business any time soon, I do believe they will have to start producing a lot more original content in order to counter big movie studios from pulling content. This year alone Netflix will spend about $6 billion in original content. That number expected to almost double next year.
This could mean trouble for the streaming giant as other movie studios are likely to follow what Disney just did.