As you may have heard, Disney is going to create its own streaming service and pull stuff from Netflix. That hurts me, because I do like to watch kid’s movies from time to time when I’m not in the mood for bad guys, and also because Disney owns Marvel.
What does that mean? Well, I’m still gonna be using Netflix, so that won’t be a problem for them. But for Disney.
Note that I don’t know how Netflix’s business model works, but I assume some of my money goes to the company who made the movies I watch. That’s an assumption.
So now they get some money from me, for watching their movies on Netflix. But if they pull it, and I really want to watch it, what do I do? I’ll watch it on some other site that is, let’s say, not so keen on paying royalties. So now Disney gets nothing.
Oh sure, there will be some people who will switch to Disney’s streaming platform. But that will be a small share, and certainly not most of their target customers, which are parents already struggling for money sometimes.
When will they realise (that also includes other studios) that customers are actually willing to pay something when they get most of what they want. I would pay 30$ for Netflix (in Switzerland, the full tier plan is about 20$) if I also had Game of Thrones and new movies as soon as they get on DVD.
But like this? They can keep on paying lawyers to take down those sites. And I like to imagine that royalty income is greater than lawyer expenses.