How the Video Streaming Market Will Heat up With Disney
Heading into 2018, it is time to look into new avenues that could possibly open up for stock trading. With advanced trading software, online stock trading can become a lot more intelligent. And here's a segment that could get a lot hotter than it already is and is worth tapping into thanks to the smart moves by one of the currently insignificant players, according to Danny Vena of Motley Fool.
Early in 2017, Disney ($DIS) made a crucial announcement that could now potentially reshape the video streaming market. That announcement revealed that Disney would not be renewing its ongoing deal with Netflix ($NFLX) which would expire in 2019.Netflix Stands to Lose a Lot When Disney Leaves
The Disney deal has made Netflix really diverse in its content. Netflix filled its arsenal with films from Disney, Pixar, Marvel and Lucasfilm as a result of the deal. Disney now plans to start its own service in 2019. Movies from the aforementioned production houses will then be used by Disney for its own streaming efforts in the absence of the Netflix deal.21st Century Fox Deal and ESPN Will Enrich Disney Further
Besides, this month, Disney also announced its intention of acquiring Twenty-First Century Fox ($FOX, $FOXA). That brings with it a storehouse of diverse content. The 21st Century Fox deal will give Disney controlling interest in Hulu, America's third most popular streaming platform. In 2018 Disney will also be launching a video streaming service branded by ESPN.
Putting it all together, Disney will be having three streaming services by 2019 all of which would be posing a competition to Netflix in some way. That’s how Disney will be strengthening its arsenal now.Video Streaming Market Dominated by Top 3 but That Can Change
We know Netflix has been dominating the video streaming market. Amazon ($AMZN) and Hulu come second and third in the US. The other services are way behind. In the US, according to a report by Hub Entertainment Research quoted by Motley Fool, there is a 61% estimated usage penetration for Netflix. Amazon and Hulu only have 36% and 22% of penetration respectively. While this report may seem pretty depressing for the other players such as Disney looking to make it big in the video streaming market, a deeper look reveals that there is another dimension to these findings.
In the study, 66% were found to subscribe to at least a single streaming service, 38% to two or more providers, and 14% to all three providers. So consumers have a willingness to subscribe to more than a single service and that makes it more encouraging for players beyond the top three, such as Disney, looking to enter the Netflix-dominated market.Disney Can Strike It Big
Moreover, young viewers are significantly enthusiastic about Disney's upcoming streaming platforms. A recent Morning Consult poll revealed 36% of surveyed viewers in the age group of 18 to 29 years wished to subscribe to a Disney service. 58% of these surveyed persons revealed that their Disney subscription would be along with other streaming platforms.
CEO Bob Iger has also revealed that the Disney service would cost lower than Netflix. Now that's even better and bodes really well for Disney, not to mention the variety of content on offer from Lucasfilm, Pixar, Marvel and Disney.
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