Refined from Oriental Securities: "Walt Disney Company plus code streaming video, the impact on Netflix geometry?" "
In recent years, the rise of streaming media companies, represented by Netflix, has seriously threatened the position of traditional entertainment giant Walt Disney Company. Of course, the boss will not wait to die. First, he will buy Fox, then terminate the cooperation with Netflix, build his own streaming service platform, and restructure the company structure. Walt Disney Company, who frequently shoots in the streaming media industry, will bring crisis to Netflix?
1. The latest data tracking of American streaming video industry.
According to Digital Entertainment Group's "American Home Entertainment report", US household subscription streaming service expenditure in the first quarter of 2018 totaled $2.97 billion, an increase of 28.9% over the same period last year and still maintaining rapid growth.
From the point of view of the number of platform subscription members, the number of platform subscription members is growing steadily. Among them, Netflix Inc takes the lead in the streaming video platform with 56.96 million subscribers. At the same time, the major platforms continue to increase content investment, further improve the budget, and pay more attention to the original content.
2. What is the impact of Walt Disney Company's self-built streaming media platform on the industry?
For Walt Disney Company: the inevitable choice under the trend of "Cord-Cutting"
Oriental Securities proposedStreaming video platform is becoming the most important content integration platform and content distribution channel in the future. for the six major media groups in the United States, including Walt Disney Company, their business covers Hollywood producers. More importantly, it has distribution networks such as radio and television networks, cable television networks and cable television operation systems, mastering the strong discourse power of content distribution channels, and forming a vertical media giant integrated with production and broadcasting. And generally speaking, the profit margin of content integration and distribution is higher than that of content production.
For Walt Disney Company, the construction of streaming video platform is an inevitable move to focus on the future, to deal with "pinching the line", and to grasp the future channel discourse power.
For Netflix: multiple measures to reduce the impact of content withdrawal, the overall impact is relatively limited
Oriental Securities believes thatAs Walt Disney Company's newly launched streaming platform Disney Play focuses on family content aimed at family users, after the agreement is cancelled, it may be the family users of Netflix who are most vulnerable. In response to the impact of Walt Disney Company, Netflix has taken many measures to fill the gap in the content that Walt Disney Company withdrew his copyright.
Overall, Netflix suffered relatively limited impact from Walt Disney Company's withdrawal of copyright, according to feedback from 492 household users with children collected by AlphaHQ.
3. Walt Disney Company's streaming media layout: three platforms focus on different types of content.
In March 2018, Walt Disney Company announced a major strategic restructuring plan. after the department adjustment, the consumer direct docking and the international department will have three streaming media platforms: sports streaming media subscription service ESPN+, Walt Disney Company streaming media service Disney Play and Hulu.
Walt Disney Company's three major streaming video platforms have different positioning, focusing on different types of content.
4. The latest strategic planning and layout of major streaming video platforms in the United States.
Netflix: the types of homemade content are constantly expanding, and the TV side has become an important source of users.
At present, Netflix's original content covers dramas, movies, documentaries, talk shows, Reality Show, children's programs and other types. With the slowdown of user growth in the United States and some countries, bundling with MVPD set-top boxes and pay-TV operators has become an important strategy for Netflix to increase penetration and promote user growth. In 2017, 25% of Netflix's newly registered users came from TV.
Amazon Prime Video: increase the content budget and strengthen the sports layout
Amazon Prime Video is one of the additional rights and interests of Amazon.Com Inc Prime members and has been launched as an independent service. The number of Amazon Prime Video subscribers worldwide has exceeded 65 million, including 26 million domestic subscribers in the United States.
Compared with Netflix, which has not yet been involved in sports content, Amazon.Com Inc has actively laid out the field of sports events, won the exclusive rights of the American Football League (NFL) and the exclusive streaming rights of tennis ATP World Tour, and reached a cooperation with sports TV station Eurosports. In the future, sports exclusive rights may become important resources of Amazon Video.
Hulu: high-quality content drives the growth of users, sports content and TV channels
Hulu has made a strong breakthrough in recent years to become the third largest streaming platform in the United States and now has 20 million subscribers. After completing the acquisition of Fox, Walt Disney Company will hold shares in 60%Hulu, and Hulu will be integrated into Walt Disney Company's direct consumer and international departments, and undertake the more adult content of Walt Disney Company and Fox in accordance with Walt Disney Company's strategic plan.
5. Risk hint
Industry competition intensifies, industry regulatory risks, and copyright costs rise sharply.