Disney/Netflix announcement – CCS Insight comment

Following the announcement that Disney is to remove its content from Netflix and launch its own streaming service, Paolo Pescatore, vice president, Multiplay and Media, CCS Insight, said: “Disney has been a relatively late player to the online video landscape. Though its arrival was expected, this is still big news. Fundamentally, the company doesn't want to cannibalise its existing core revenue streams.

“However, not even a media giant like Disney can ignore the opportunity to distribute its wealth of franchises and content to new audiences via the Internet. Video is proving to be a battle ground for all providers as underlined by recent announcements from the likes of Amazon et al and it is apparent that the future of delivering video will be via the Internet. Furthermore, we believe that the move to Internet delivery of TV programming will see a return to large bundles of content.”

“The move squashes any rumours of Disney acquiring Netflix. But it is a huge compliment to the success Netflix has achieved within a short period of time and a strong validation of its strategy. Removing Disney content will be a setback for Netflix, but expect other content and media owners to follow Disney in removing their programming on Netflix to differentiate their own offerings. If anything this places more importance on Netflix’s own investment in original content and puts into context Netflix’s recent acquisition of comics publisher Millarworld.”