Speaking on Disney’s recent second quarter fiscal call, company CEO Bob Iger claimed that he looks at Netflix as an ally rather than a competitor. This attitude is not necessarily reflective of that of other studio heads.
Iger believes that over-the-top video services such as Netflix are lucrative for Disney because it lets the company license content to a service with a large audience. Said Iger:
“We look at Netflix as more friend than foe because they have become an aggressive customer of ours . . . Products like Netflix are pretty attractive because they offer up user-friendly, efficient and often times much less expensive way to watch television.”
Even though Netflix is looking at timing streaming releases with theatrical launches, Iger thinks that theatrical windows are working well as they are:
“At the moment, we don’t see any need to aggressively compress it . . . For us, we don’t see taking steps to decrease the theatrical window because frankly it’s working for us . . . It’s just hard to say when something either feels too disruptive, too fast or not.
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As Netflix continues to grow and produce more of its own content, do you think Disney will continue to keep it in the “friend zone?”
[via Home Media Magazine]
I really don’t know why Disney has not started there own online deal. For The Disney Movies. & Tv shows. It will happen in time. They have the Money to do it……
Just a matter of time and everyone will be streaming their content direct, and if anyone could turn the switch on immediately, it would be Disney, so with Netflix going in direction of producing their own content, it will be interesting to see how soon Disney turns on their own streaming switch.
Agreed. No need for a middle man.
Well, they at least have to run out their contract with Netflix, after signing a great deal for both their own movies and Netflix-created Marvel content, but they’re doing the smart thing right now.
Netflix is the only one out there with the infrastructure and customer base for a near-perfect service. The next big one is Hulu, and that’s just not up to snuff. The fact that Disney, who co-owns Hulu through Disney-ABC, hasn’t used Hulu in anywhere near the same capacity as they have Netflix says a lot.
Netflix continues to grow at a ridiculous pace. They practically single-handedly toppled brick-and-mortar movie rental stores, are giving cable companies a run for their money, and is seeing no end to subscriber growth.
Disney knows Netflix is best kept as a friend for now. Even if they introduced their own service, they won’t get anywhere near the base that Netflix currently has.
I think the will stay with Netflix for a long time. I understand them all wanting to create their own streaming deals but I think they also understand that it will make it expensive very quickly for customers who want to watch multiple networks/movie company productions. When you need to sign up for 5-10 different streaming services to watch the stuff you want to because it is all on different networks and each one is charging say $8.00 per month per service that gets expensive compared to paying for just say 2 or 3 services.