Netflix and Disney are beginning to take streaming subscribers for granted, raising monthly services, like the old cable guy they sought to replace. They could share a similar fate as subscribers seek lower-cost alternatives in a rapidly changing content consumption and distribution industry.
By International Business Times
Original article published at: https://www.ibtimes.com/netflix-disney-shouldnt-take-subscribers-granted-like-old-cable-3708747
"Streaming subscribers often subscribe, cancel and sign up again because once you see the streaming competition, many alternatives pale compared to Netflix and Disney Plus," added Nicole Russin-McFarland, film score composer and actress.
TV/film industry expert Sean Boelman is concerned about the long-term impact of Disney's price hike. "The Netflix password-sharing restrictions were met with almost universal dislike," he told IBT. "So it's baffling to think Disney thought these initiatives would go over any better for their services."
"Especially when original content is being removed from their services, and new content releases are delayed by SAG and WGA strikes, subscribers are essentially being asked to pay more for less. These measures will likely cost Disney," he added.
Dan Goman, founder and CEO of Ateliere, admits that subscription fatigue is at an all-time high.
"Consumers are overwhelmed with the number and cost of subscription services vying for their eyeballs and dollars," he told IBT, citing a Variety survey that showed that 61% of those surveyed believe their streaming subs are too expensive and value the average streamer at $7.46 monthly.
At the same time, Goman believes Disney and Netflix have a captive audience for their shows.
"Disney and Netflix are in an enviable position where subscribers can't and won't say no to them," he explained. "Netflix has become ingrained in popular culture, and they are almost the default option when consumers want to sit down and watch something. Disney has one of the best-known, most iconic brands in the world, and for families with children, there will be a Disney subscription, no question about it."
Nonetheless, Goman sees both Netflix and Disney facing a severe challenge from alternative content consumption and distribution platforms that are gaining popularity among younger generations.
"The biggest threat to the streaming giants like Netflix and Disney may not come from a substantial loss of current subscribers, but rather from the rising popularity of different content consumption paradigms and content distribution platforms like TikTok and YouTube that younger generations prefer to subscription streaming alternatives," he added.