Netflix Disney Deal has Major Implications
Even though the Netflix – Disney deal won’t showcase new films in the Netflix queue until 2016, the deal has sent shockwaves throughout the television industry. Major players like HBO, Starz, and other premium providers should take notice.
Netflix is making strides, in spite of all the controversy that has surrounded the streaming service giant in the recent past. With the Disney deal, Netflix has acquired a wealth of content to augment their already impressive portfolio of shows and movies. Granted, there is no word on whether or not Disney’s latest Star Wars purchase will fit into this deal, there is a strong chance that it will be included when the content arrives on Netflix in 2013.
Make no mistake, this deal has tremendous implications for the pay TV industry, a fact that was made clear by the stock price changes for Netflix and Liberty Media Corp., owner of the current Disney content licensee, Starz. While Netflix stock witnessed nearly a 15% gain, Liberty Media Corp. shares dropped 6% in the wake of the announcement. Coming just a few months after negotiations with Starz fell through and the network pulled their shows from Netflix, this Disney victory is a welcomed success for Netflix.
As more people turn to Netflix and other streaming services to watch their favorite programs, top-notch content will be the key towards increasing and retaining subscribers. Console apps, the smartphone / tablet industry, and PC viewership are all increasing the reach and capabilities of streaming video. The Netflix – Disney deal helps to better position the company moving forward, and secure it’s place as the #1 streaming video provider.
Robert Birmingham is Editor-in-chief at flydrs.com.