L2 recently interviewed author Derek Thompon on the debate of whether the distribution network and scale of Netflix is more valuable than treasure trove of content (Pixar, Star Wars, Marvel) that Disney owns. Fascinating listen on who will win over time and whether new entrants like Spotify have a chance. But is there only room for one?
I find it funny how we all talk about cord cutting because of our desire to stop paying for too many channels or content we don’t need yet switch to buying “channels” like Netflix, Hulu, HBO Go, Showtime Anytime, ESPN+ with an abundance of content we don’t watch. Bundles of these apps and services have begin with Hulu and Spotify being offered together and Google TV is now the equivalent of a Verizon FiOS or Time Warner cable bundle..
Because we are just recreating the same ecosystem we are fleeing, there won’t just be one. There will be many. And companies like Disney realize this. Hence they are “confusing” customers by splitting Hulu and Disney core content into two “channels.” Why?
Because adults will pay for both. They will purchase Disney streaming for the family and Hulu streaming for when the kids go to bed. Don’t count Bob Eiger and Disney out just yet, there are many more channels to come as traditional media brings their content back online. Have a listen, fascinating.