- 24/12/2022
- Category: Commentaries
Author: Mario Hartanto
Editor: M Perdana Karim
“Taduum”, you have probably often heard the opening sound while watching Netflix. Mainly when this pandemic shift happens, many people use movie-streaming platforms as entertainment. While currently, Netflix is the leading pioneer in streaming services, with 222 million active users[i]; many competitors arise providing entertainment services, including the powerful Disney+. This commentary will unravel Netflix and Disney+’s strategy and competition to grab the audience’s attention.
Netflix is the Pioneer, and Disney+ is the Revolutionnaire
Globally speaking, the streaming market size in 2021 was valued at USD 59.14 billion and is expected growth by 21.3% from 2022 to 2030[ii]. With this huge market to fill, many entertainment industries are trying to provide similar streaming services. As a pioneer in this market, Netflix has changed how we enjoy entertainment since 2007. From watching movies at the cinema, now we can enjoy various entertainment from home. With paying Netflix’s monthly subscription, audiences can enjoy 3600+ movies and 1800 TV Shows in 190 countries.
Disney+ itself entered the market in November 2019. While considered new, within almost three years, Disney+ has gained rapid growth subscribers at 116 million worldwide. Even in Indonesia, Disney+ Hostar leads the market with 2,5 million subscribers, defeating Netflix in 850.000 users[iii]. This massive progress came because Disney is well known as one of the biggest movie production companies in the world, and they managed to revolutionize home theatre. During the social lockdown, many movie theaters were closed for a long time[iv]. This regulation made movie production companies have to delay their release dates. However, Disney saw this opportunity and brought the cinema experience to the audience’s home through Disney+. Even Disney shifted some of its films from originally played in theaters to the Disney+ streaming platform.
Content Strategy: Diversity vs Popular Demand
Strategically speaking, both Netflix and Disney+ have their own way of entertaining their audiences. Netflix is a streaming service that values new perspectives. To bring more points of view, Netflix curated its content with inclusion and diversity through the original content. Studies from the University of Southern California in 2021 found that 52% of Netflix films and series had girls or women starring roles[v]. Also, 35.7% of Netflix’s main characters came from underrepresented groups, such as People of Color, the LGBTQIA+ community, people with disabilities, etc. Netflix is also trying to overcome the western only’s perspective by reaching out to the Asian market. One of the prominent ways is actively adapting Korean Drama to the platform. Netflix saw this opportunity with popular Korean Dramas such as Squid Game, Business Proposal, Crash Landing on You, etc.
Whereas Disney+ has a big privilege from its original production house that is known as home for big movie theaters. Supported by other big film producers (Marvel, Lucasfilm, Pixar), Disney+ utilizes it by providing box office movies that were previously shown in cinema. This strategy brings up a ‘nostalgia’ sensation for the audience. Next, Disney+ offered exclusive home theatre content. Before the pandemic, new Disney movies would exist in Disney+ from five to eight months after premiering in theaters. But now, big box office exclusively airing on Disney+ in 45 days[vi]. Last, to reach the Asian market, Disney+ collaborates with Hotstar, a streaming service from India. Hotstar contains TV, movies, and knowledge-based content from India and other regions.
Comparison: Prices and Benefits
Comparatively speaking, Disney+ services are cheaper dan Netflix. For the premium package, Netflix’s subscription is worth Rp46.500,00 per month (Rp186.000,00 for four users). While Disney+ service is worth of Rp39.000,00 per month and even got less price with an annual subscription of Rp199.000,00 (approx. Rp16.600,00 per month). Disney+ also has several promo collaborations with internet providers. May Disney+ win at the price competition compared to Netflix; the variance of its content is limited because of mostly Disney+ substance for kids. Disney+ approximately has 1.000 pieces of content that are heavy on documentaries and blockbuster movies. Meanwhile, Netflix has broadened various movies and films for kids, teenagers, young adults, adults, etc[vii]. The audience can also watch content from Fox, Universal Pictures, Showtime, etc, on Netflix. Regardless of the competition between Netflix and Disney+, the streaming services market is progressively growing along with technological advancement. Yet, the answer is being asked back to the audiences: What kind of entertainment that you value consuming?
[i] Maglio, T. (2022, March 16). As Netflix cracks down on passwords, analysts say it’s running out of its most valuable subscribers. IndieWire. Retrieved April 23, 2022, from https://www.indiewire.com/2022/03/netflix-subscribers-guidance-broadband-cell-phones-1234708470/
[ii] Global Video Streaming Market Share Report, 2030. (n.d.). Retrieved April 26, 2022, from https://www.grandviewresearch.com/industry-analysis/video-streaming-market
[iii] Kalahkan Netflix, Alasan Pelanggan Disney Plus Hotstar Melonjak di Ri. Info Komputer. (n.d.). Retrieved April 2, 2022, from https://infokomputer.grid.id/read/122520147/kalahkan-netflix-alasan-pelanggan-disney-plus-hotstar-melonjak-di-ri
[iv] Harvard, C. T. (2021). Disney, Netflix, and Amazon Oh My! An Analysis of Streaming Brand Competition and the Impact on the Future of Consumer Entertainment. Finding in Sport, Hospitality, Entertainment, and Event Management, 38–45.
[v] Sperling, N. (2021, February 26). Netflix productions are more diverse than studio films, study shows. The New York Times. Retrieved April 26, 2022, from https://www.nytimes.com/2021/02/26/business/media/netflix-diversity-movies-original-series.html
[vi] Barnes, H. (2021, October 7). Disney’s streaming content strategy is winning. Medium. Retrieved April 5, 2022, from https://marker.medium.com/disneys-streaming-content-strategy-is-winning-dbda85950112
[vii] Jackson, K. (2022, March 22). Disney Plus vs. netflix: Which one should you choose? CNET. Retrieved April 6, 2022, from https://www.cnet.com/tech/services-and-software/disney-plus-vs-netflix-how-to-choose-between-both-streaming-services/
