The Streaming Wars--Part I

In recent weeks, the press has been giving significant coverage to the launch of Apple TV+ and Disney +. I have waited to put up a post in order to sift through the news reports and chatter. This  brief post will be the first of several to come between now and the end of the year regarding the new world of streaming video.

On November 6th, Reed Hastings, co-founder and CEO of Netflix, gave a 30 minute interview at the New York Times Deal Book Conference (you can catch the whole thing on YouTube by simply plugging in NYTimes Deal Book Conference or pasting https://www.youtube.com/watch?v=8oVl3gyIaeI). He was interviewed by Andrew Ross Sorkin of both CNBC and The New York Times. Mr. Hastings also took a few questions from prominent players in media and tech world who were in the audience.

In brief, some highlights were:

1) He described Disney as a “wonderful competitor” and said that he would subscribe to Disney +.

2) Hastings said that Netflix had the most to learn from Disney compared to other competitors. Enjoyed watching “Fleabag” on Amazon Prime Video.

3) He said that his focus will be on “pleasing our members” and not going in to news, sports, or anything associated with gaming.

4) Also, he confirmed that Netflix is now in 190 countries.

5) From the floor, a lady asked whether he would consider adding paid advertising to Netflix as Hulu has done. He said absolutely not and mentioned how Disney+ will not have advertising even though they now have a controlling interest in Hulu. I could not help but smile at that. Back around 1984, I gave my first major address at a conference and discussed how, inevitably, HBO would one day have to take advertising before and after their feature films or specials. Here we are 35 years later and I am still wiping the egg off my face. Colleagues reminded me about it from time to time and many others never seemed to forget my worst all time forecast. At an airport last year, someone approached me and said, “Are you Don Cole?”. When I said yes and tried to place him, he flashed a dirty smile and responded, “Nice call on the HBO advertising forecast, Mr. Guru.” Since then, I have arranged to be cremated so my gaffe will not be on my tombstone.

 One thing was clear listening to Hastings. He is not trying to be all things to all people. Netflix has won the streaming war globally. It will take many years for content king Disney to roll out Disney + that far and wide. Apple TV + and Amazon Prime Video have deep pockets for sure but lack the experience in programming at present although they can certainly buy it.

A substantial issue really never came up in the interview. Netflix is still not a real moneymaker despite its global reach. That would seem to be a problem over the next few years as the cost of producing new shows will be in the annual range of $12-15 billion dollars.

This is the tip of the iceberg. There will be much more to come soon.

If you would like to contact Don Cole directly, you may reach him at doncolemedia@gmail.com