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Disney To Abandon Netflix: Could This Mean The Beginning Of An End For Netflix?


Disney

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Recently, the folks over at Disney revealed they would be taking their movies off Netflix in 2019 and announced their intention to star their own streaming service. This triggered some of us to conclude that Disney could be just the first of many companies to abandon their deals with Netflix and start their own streaming packages or even services.

This scenario could very much be plausible as we are already seeing it happen to some extent. Namely, FX and AMC Networks are now offering some streaming alternatives that don’t involve Netflix. FX offers commercial-free streaming of its current seasons of originals and many series from its back catalog, while AMC offers a similar service, but to customers who are cable subscribers.

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The Stand-Alone Model Gives Them Control

FX’s CEO, John Landgraf, said the following about their streaming service:

We have been diligent about recapturing the in-season stacking rights for all current original programming and recapturing the rights to all seasons of a large portion of our legacy of great original series.” This basically means FX isn’t planning on renewing deals with Netflix.

President of AMC Charlie Collier also wrote:

“We continue to build deeper relationships with fan communities across all of our programming.”

This way, networks like AMC and FX would have a stand-alone model of streaming their content rather than selling the rights of their shows to streaming platforms like Netflix. This stand-alone model could potentially generate more revenue and might strengthen the ever-so-crucial customer relationship.

Disney is currently the closest to making this model possible as it has several strong names for its movie studios, while it will also be pretty easy for them to develop a strong and more direct customer relationship, because, well – it’s Disney.

AMC and FX, on the other hand, are missing one key ingredient that Disney has.

As Business Insider writes: “One of the big things holding back networks like AMC and FX is that they still don’t have the infrastructure to control distribution. Disney bought a majority stake in BAMTech, the streaming video technology spun-off from Major League Baseball, in order to support its future streaming services. It also has a lot of experience in handling direct-to-consumer products and the customer service and billing requirements that go along with it. FX and AMC don’t have that.”

But What Could This Mean For Netflix?

What is interesting is that these services could be great for cable providers as they will be providing a yet another reason for cable customers to pay their bills every month, while they will also be earning more money for handling distribution and billing of the services.

As far as Netflix is concerned, these new plot twists could actually benefit Netflix rather than ruining it, especially in the long run. But they will have to focus on making more original content.