In the ever-evolving landscape of video on-demand over-the-top (OTT) streaming industry, major service providers Disney and Netflix are strategically aligning their approaches to maintain relevance. Both are delving into comparable tactics, from exploring paid-sharing options to expanding into gaming and sports streaming domains. Both had their share of discussions around subscribers, paid sharing options, and expansion into the gaming sector, reveals the Company Filings Analytics database of GlobalData, a leading data and analytics company.
Misa Singh, Business Fundamentals Analyst at GlobalData, comments: “All these strategies are aimed at improving their top-line performance, and so far these strategies seem to be paying off and working in favor of these companies.”
Disney revealed in its latest annual report that as of 1 October 2022, the estimated number of paid Disney+, Disney+ Hotstar, and Star+ subscribers was approximately 164 million, whereas according to Netflix’s latest transcript, it currently has 23 million monthly active users.
Netflix mentioned introducing a paid sharing option to improve the streaming platform for paying members and build a business. Disney discussed introducing paid-sharing options to allow access to individuals outside of the account holder’s household.
Initially, the accounts that Disney thinks are doing unpaid sharing will get communication this summer allowing the borrowers to start new subscriptions. Later 2024, account holders who want to allow further individuals to access their accounts from outside the household will be able to access the account, but they would have to pay an additional fee.
Netflix announced in its latest transcripts that it will bring WWE Live programming to its platform, starting from January 2025. WWE’s Raw will be live on Netflix exclusively in the US, Canada, the UK, and Latin America, with other countries and regions to be added over time.
Disney also revealed in its latest transcript that the full suite of ESPN’s channels will be available direct-to-consumer as part of a new joint venture with Fox and Warner Brothers Discovery to create a new streaming sports service launching this fall.
In the fall of 2025, Disney will also be offering ESPN as a stand-alone streaming option with innovative digital features, creating a one-stop sports destination unlike anything available in the marketplace today.
Disney is set to acquire a small equity stake in Epic Games. The American multinational mass media company plans to launch a groundbreaking new games and entertainment universe that brings together Disney’s beloved brands and franchises.
Netflix is also growing its product line in the gaming industry. According to the company’s latest earning call transcript, it launched the Grand Theft Auto trilogy from Rockstar Games in Q4 2023 which saw an extraordinary download.
Singh concludes: “Disney and Netflix are strategically adapting to meet the evolving consumer demands, shaping the future of the industry. These initiatives go beyond revenue enhancement, signaling a fundamental shift in streaming dynamics. Innovation and adaptability are crucial for the ongoing success in this dynamic landscape, where content diversity and accessibility are driving forces. Moving forward, innovation will remain central to staying relevant in the ever-evolving streaming market.”
