Deep Dive: Netflix Competitor Roundup
Video streaming has seen a sharp increase in growth due to the pandemic. The major players in this market are fighting to attract customers at a time when the ability to produce new content is limited. Each company has a unique advantage in the market, making this an exciting industry to watch.
Netflix is the market leader. It rose to prominence while validating the video streaming business model and exterminating the video rental market. Netflix had already started to see its growth slow before other players joined the market and is still heavily funded by debt. The key for Netflix is keeping customers interested. It may have converted users to streaming; the challenge remains to keep them on their service by providing high-quality content.
Amazon's Prime Video offers some great original content and a library of licensed content. The service also allows users to pay for sports and other live events, including NFL games. Amazon's Prime Video is free as part of the Prime subscription packaged by many to access shorter delivery times when ordering from Amazon. It is excellent for a casual or cost-conscious consumer. Amazon also has a smaller stake in growing its brand, given that Netflix relies upon Amazon's computing architecture. Amazon is currently owed $1b by Netflix over the next 3 years.
Apple employs a similar strategy to Amazon. It bundles Apple TV+ with other services, including Apple Music, Apple Fitness+, and other software as part of its Apple One subscription. This strategy provides consumers with a better value proposition. It allows Apple to capitalize upon its dominance in the mobile, tablet, and computing hardware markets.
Disney+ is the most recent entrant to the space but brings a legacy filmmaker with recognizable franchises and content to the fight. From Star Wars to Marvel, Pixar, National Geographic, ESPN, and classic Disney films, its content library is unmatched. The company has already had tremendous success adapting these franchises to a streaming service with the launch of "The Mandalorian." If Disney can continue to produce engaging content, it would appear to have an insurmountable advantage in the long run.
If you are interested in learning more about the industry, alternatives to streaming services such as Twitch and YouTube or about some of the peripheral players like HBO then let me know. You can also follow more streaming news every day by subscribing to Inside Streaming.
