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| Defeating Netflix requires Disney to integrate its services |
The president of Disney, Bob Chuckle, announced that the number of users of the company's content streaming service has exceeded 174 million users. This number shows how much Disney influences this market.
Although its most famous service, Disney Plus, is only two years old, the company has accomplished this feat. This large number of users allows the company to compete with HBO Max, Apple TV + and Peacock. And paved the way for the defeat of Netflix.
Netflix is the industry leader with 209 million active users worldwide. However, the number of Disney users currently brings it closer than ever to beating the competition.
The competition between Disney and Netflix
The number of users of the Disney services is spread across several platforms. Disney Plus has 116 million users, while ESPN+ has about 15 million users. There are also 43 million Hulu users.
In the case of direct competition between Disney Plus and Netflix, we found that the former would have to double the number of users in order to outperform its competitors. But if all Disney services were combined, the situation would be different.
Maybe the company really needs this to get all its services in one app as the app has 174 million users while Netflix has 209 million users. Given its size, the app can also attract more users, accelerating Disney's doubling in number.
Implementing this proposal would allow this unified application to provide a single set of content types. Because each division of the company offers different types of content, including family content, sports content, movies, and original dramas.
Currently, users only need one subscription to access content on all three platforms at a cost of $14. In other words, merging the platforms into one app doesn't take much toll as the company effectively integrates them into the subscription package content.
Kristen McCarthy, Disney's chief financial officer, announced that Hoststar has helped the company grow. It is an Indian content streaming service that offers live streaming of local Hindi movies and series as well as sports.
Difficult to integrate Netflix
The CEO of the company stated that one of the main reasons why it is currently difficult to integrate services into an application is that each service operates in a different market. Hotstar is an example.
Here services like Hulu can be used in markets where ESPN+ is not available and vice versa. As a result, it is difficult to publish a single app that includes all the services in all countries/regions.
In addition, some users may only be interested in Disney Plus Content and no other Content. In this case, for example, they do not benefit from the unified application.
On the other hand, some of these platforms have exclusive contracts with certain production companies. These contracts can only be used by the contract platform itself. For example, this one-time app cannot display exclusive Fox content, only Hulu.