How Disney lacks Netflix’s dominance

The cracks are manifested in Netflix’s global dominance.

Netflix Still king Streaming video, but viewers are slowly shifting to a new rival, the Walt Disney Company. Disney +According to a study from Parrot analytics..

Netflix Share of Interest in Global Demand — Measure The popularity of programs created by Parrot and the key barometer of new subscribers that streaming services can attract fell below 50% for the first time in the second quarter of this year.

“The lack of new hit original programming and intensifying competition with other streamers will ultimately hurt the growth and retention of our subscribers,” Parrot said in a news release.

The company announced on Tuesday that it attracted 1.5 million new subscribers in the second quarter of this year, surpassing the lows it set when it was communicated to Wall Street. is expected Add only 1 million.

The company plans to add about 3.5 million new subscribers in the third quarter, less than investors expected about 5.5 million. In after-hours trading, stock prices fell by as much as 4%.

Netflix relies on creating different shows and movies for as many different viewers as possible, and the pandemic has confused its formula and forced it to stop production around the world.

According to Parrot, Disney + more than doubled its share of demand in the second quarter compared to a year ago, as well as Amazon Prime Video, AppleTV + and HBO Max.

Even newcomers who have lost Netflix’s long-standing grip, Netflix co-CEO Reed Hastings has dismissed the competition as pretending to be Netflix’s throne. After being asked by investors in April why they missed the expectation of adding new customers in the first quarter, Hastings said: competition? ‘”

“We actually looked at all the data and looked at the different regions where new competitors were launched, but not,” he continued. “And there is no difference in relative growth in these regions, which gives us confidence.”

“We’ve been competing with Amazon Prime for 13 years and Hulu for 14 years,” he added. “Also very competitive with linear TVs, so there is no real change that can be detected in a highly competitive environment. It always stays high and high.”

In other words: If Disney + is hurting us, we aren’t looking at it.

The argument that Netflix has long been competing with regular TVs and other streamers overlooks the fact that new rivals like Disney + and Apple TV + are much cheaper than Netflix (and subscription TVs). And while these services produce far less originals than Netflix, they seem to be well worth their spending.

In the second quarter, demand for Disney + increased significantly from the Marvel Cinematic Universe-based series Falcon & Winter Soldier, which has dominated box office revenue in recent years. According to Aum, another Marvel spin-off, Loki, also helped.

Amazon Prime Video was boosted during this period with the launch of the adult-oriented anime superhero series “Invincible.” And Apple TV + attracted three original and new customers, the 1981 novel-based drama The Mosquito Coast. The science fiction series “For All Mankind” and the comedy series “Mythic Quest” at the game developer studio.

Speaking of which, Netflix said it plans to dive into video games this month. Previously, we hired Mike Verdu, a game executive at Electronic Arts and Facebook, to oversee the development of new games. This is a potentially important move for the company, which has not deviated significantly from the official television series and movies.

How Disney lacks Netflix’s dominance

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