Presentation
ICT: Netflix, Disney and other online content platforms
Netflix has profoundly transformed how society consumes audiovisual content. Launched in 2014 as an on-demand media service, the company quickly diversified its activities, producing and distributing its own content.
Narcos, Money Heist (La Casa de Papel), House of Cards, and Stranger Things are prime examples of the group’s original creations that have achieved considerable success. More recently, Netflix distinguished itself with the film Roma, directed by Alfonso Cuarón, which won three Oscars in 2019.
Historically dominated by pay television and cable channels, viewership has shifted en masse to streaming services such as Netflix, Amazon Prime Video, and Apple TV+.
With 5 million accounts, Netflix has officially overtaken Canal+ in terms of subscribers. This phenomenon, dubbed “cord cutting,” has unprecedented financial consequences for the audiovisual industry.
Streaming wars: the audiovisual content platforms
Financially, however, Netflix’s massive expansion requires considerable investment—$12 billion in 2018 on the creation of exclusive audiovisual content. This puts it in direct competition with other audiovisual production groups, notably an incredibly powerful rival: the Walt Disney Company.
Already owning 60% of the Hulu platform and the ESPN and ABC News channels, Disney is preparing to launch its own streaming service, Disney+, potentially at a lower cost than Netflix and offering its entire catalog acquired in recent years: Disney & Pixar Animation Studios, Marvel, and Star Wars.
Disney was behind the four biggest box office hits of 2018, averaging $1.2 billion in revenue per title: Avengers: Infinity War, Black Panther, Incredibles 2, and Bohemian Rhapsody.
Faced with such powerful consumer appeal, Netflix’s massive financial investments to compete with Disney risk being perilous.
