I can’t think of an entertainment company right now with a more insatiable, financial appetite than Disney. If owning NBC, FOX, ESPN and Marvel itself wasn’t enough, Disney have decided to take over the online streaming world by investing 52.4 billion dollars in a company called Hulu.
In other words, Disney are on their way to creating their own version of Netflix and Netflix aren’t too happy about it.
Signs of Netflix’s sleepless nights were made apparent with their decision to charge their customers more in December, mysteriously around the same time rumors about this Hulu-Disney deal circulated …Example A:
I stopped paying my Netflix because they keep changing them charge prices. Fuck it I’ll just use my Hulu for free 🤷🏽♂️💯
— Death Star♌ (@mannyeaton1206) January 4, 2018
Smooth move, Netflix.
When Disney announced their plans to part ways (burn bridges) with Netflix in 2017 and took more than 150 movies and shows with them, we were witnessing the beginning of a messy divorce with prenups and egos to battle through.
Let’s not forget that Disney now own:
- Fantastic 4
- The Deadpool franchises
- And ALL of the Marvel franchises that they already owned
Do you know how many Superhero films are coming out this year alone?! This is all kinds of long for Netflix.
So who are Hulu and how did this happen?
Hulu is an American subscription video-on-demand service, founded in 2007 and funded by a handful of companies including FOX who owned a 30% stake. Now, because Disney already own FOX, Disney bought just 30% more of Hulu meaning Disney now have a 60%, majority share. They don’t quite own Hulu entirely but it’s safe to say their opinions on Hulu’s future plans will have the greatest influence.
What does this mean for Netflix and my subscription?
It’s way too early to tell, and jokes aside, with more than 94 million subscribers, Netflix are still dominating their industry. There are also rumors that Apple want to buy Netflix, this could mean a very different looking Netflix but the fact remains – you’ll lose a tonne of shows and films. For Netflix, it’s not the fact that another company are potential competitors, it’s the fact it’s DISNEY; they’re competing against the dinosaurs of the entertainment world. Disney own incredible content and they’ve been doing this for almost 100 years – not an exaggeration at all. They have the right connections, tools and most of all, money to get to where they need to be – in the shortest space of time. In other words, Netflix need to think quickly before they find themselves being overlapped in a marathon they couldn’t possibly medal in.
What does this mean for Disney?
Disney own incredible entertainment property to attract new customers and more importantly family-friendly homes, it looks like this may be their unique selling point. They own the Simpsons and Avatar franchises and the New Star Wars series alone. Disney aren’t working with content that “could do well”, they’ve got high-demand shows and movies to share for days, it’s just a matter of when this deal comes to fruition (likely to be 2019). It’s not all hunky dory for Disney though, this new deal has set them back financially big time, but on the whole, Disney’s monthly revenue outdoes Netflix’s monthly revenues by a mile; so it’s likely they’ll make this money back and then some, in no time.
Why didn’t Disney just try to work on something with Netflix?
Because egos, way more control, complicated legalities and the opportunity to make more money. This Fox-Netflilx-Hulu love triangle will attract children who watch TV (which of them don’t) and adults who enjoy comics, anime, superhero films and everything in between. On paper Disney’s marriage to hulu gives them the upper-hand so let’s see how this new entertainment love-affair pans out.
What do you make of this new Disney – Hulu deal? Comment below or tweet us @LengSection.