Without Disney, Netflix needs to make more original films

Disney and Netflix have parted ways, increasing the pressure on streaming services, which means that Netflix needs to produce more original series. At present, Hollywood cannot truly "weaned" from this streaming pioneer.

The separation between Walt Disney and Netflix has increased pressure on streaming services, which means Netflix needs to produce more original series and increase its efforts to develop original films, as other media companies no longer provide Nextflix with valuable TV shows and movies.

Disney CEO Iger and NetflixCEO Hastings

Disney are by far the largest film and television providers to withdraw programs from the Netflix platform. Over the past few years, Netflix has gone from being a friend in Hollywood to being a competitor in Hollywood. Scripps Internet Interactive has decided not to renew its contract with Netflix, which means it will no longer provide programs to Netflix, while executives from 21st Century Fox and Time Warner said they will reduce sales cooperation with streaming services.

"Fox's huge global exclusive agreement with Netflix is a thorny issue," st Century Fox executive chairman Lachlan Murdoch said in a conference call with the analyst team on Wednesday. We believe there is a broader market worthy of attention. "

Although Netflix has had considerable success with original series such as" House of Cards "and" Stranger Things,"this year the bulk of Netflix's $6 billion content budget has been used to buy TV shows and movies produced and owned by other companies, often highly competitive media giants. A larger amount of expenditure was also spent on solo dramas and feature films.

Todd Zunger, senior analyst at Bernstein Research, wrote in a report on Wednesday: "As long as the entire service chain continues to provide valuable content to consumers, losing Disney movies will have no significant impact on Netflix's user growth. "

Initially, investors panicked because Netflix's share price fell 4.7%. After that, Netflix's share price rebounded a lot, and the New York stock market closed down 1.5% overall on Wednesday, closing at $175.78. Compared with the 11% gain in the S & P 500 index, Netflix's share price is up 42% this year.

Netflix will lose rights to long Disney

stories Disney said this week: Disney will no longer renew its movie deal with California-based Los Gatos as part of its plan to start its own online service. This will directly deal a serious blow to the diversification of movie options offered by Netflix in the United States. Starting in 2019, Netflix will no longer have the rights to broadcast Disney feature films, including the hugely successful "Beauty and the Beast" and "Finding Nemo 2: Where Is Dolly Going?" Also affected may be Marvel and Star Wars films.

Turning point for Netflix

In December 2012, when Netflix announced a deal with Disney, adding a new batch of Disney films was an important turning point for Netflix. At first, the streaming company mainly provided older movies to audiences and was only just beginning to produce its own movie series and feature films.

Now, Netflix produces more than 1000 hours of original programming every year. Most of the new subscribers registered by Netflix come from outside the United States, and some regions don't even offer Disney movies.

However, movies still contribute 30% of Netflix content viewing time and prevent the loss of existing users. Disney provides Netflix with the world's most popular movies. Although the total number of movie episodes it provides to Netflix is decreasing, when users first open the app, Disney features such as "Star Wars: Rogue One" often appear at the front of the page, and are displayed side by side with Netflix's original content.

Analyst Todd Zunger said in his report: "Disney and Pixar movies are the perfect collection of entertainment content. Streaming services such as Netflix will benefit from owning this content (provided the price is right). "

Former Savior"

Initially, media giants Disney, Viacom Group and Fox were among the first companies to license TV shows and movies to Netflix to replace shrinking DVD sales. They believe that selling reruns to Netflix will also bring viewers back to their TV networks, thereby continuing to drive the development of the TV industry.

However, these practices have helped cultivate a competitor that is now threatening their main business, pay TV. Netflix has attracted more than 100 million global users by providing a large number of on-demand TV shows and movies, which has also eroded consumer interest in live TV.

Media companies responded by keeping more TV shows for sale and creating their own services to compete with Netflix. Time Warner has already created its own paid cable network HBO, Colombia created All Access, the highest-rated online broadcast network in the United States, and Disney, Comcast, Fox and Time Warner jointly invested in the creation of Hulu video.

Netflix just recently acquired comic book company Millarworld

. The emergence of these services has not slowed down Netflix's development. By investing billions of dollars in original programming, Netflix has prepared itself for the possibility of Hollywood studios changing strategies. This week, the company unveiled plans for a series hosted by well-known midnight talk show host David Letterman. It has also acquired comic book publisher Millarworld, which will use its work as a basis for producing TV shows and movies.

David Letterman (right) will host new Netflix shows and

Netflix is still exploring its path to the original film business. In March, the company hired producer Scott Stubaugh to take charge of developing the business direction.

Although media companies are talking about how to break away from Netflix, most of them still have in-depth commercial partnerships with Netflix. Disney-owned Marvel Pictures has created the Daredevil, Jessica Jones and Luke Cage series for Netflix and will continue to collaborate in the next few years.

Todd Zunger wrote: "Disney's approach is particularly contradictory, even though it believes that Netflix will continue to be active in the home film and television entertainment space in the future. But it still significantly reduced its commercial and strategic ties with Netflix. "

Editor: Xiongwei