Netflix: users may add other services, but they won’t cancel Netflix
Streaming video on demand (SVOD) market leader Netflix is confident that, despite a number of new competitors, users will stick with the platform. Key to that prediction is Netflix’s (very understandable) belief in its own original content. The company pumps many billions of dollars into the creation of this content every year, and, so far, it’s given it the edge. Will that continue, as Disney and others enter the space?
Netflix’s share price has increased by 44% so far this year
Source: Yahoo Finance
In a recent interview given at SeriesFest, a new TV-focused festival in Denver, Netflix’s content chief, Ted Sarandos, was keen to explain what he thought would happen in the “streaming wars” as new players entered the fray. He told listeners: “The thing that’s interesting about all these upcoming services as well as the services that are in the market today is that mostly they have none of the same programming. Nothing that’s on Disney+ is going to be on Netflix and nothing that’s on Netflix is going to be on the [Comcast and WarnerMedia services]. They’re going to be very unique.”
He continued to say that while “it’s very likely that [users will] add [other streaming platforms]” to get the content that they want, Netflix felt safe in its spot at the top. There’s good reason for that. While Disney will premier all the new Marvel Cinematic Universe shows, Netflix is a juggernaut in original content. A long list of fan favourites like Stranger Things, BoJack Horseman, Orange is the New Black, and Black Mirror, should keep viewers busy. And, as the company continues to add more original content for international viewers, that position is likely to become the case worldwide.
Dominion holds Netflix in its Global Trends Managed Fund.
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