Watch out Netflix, Mickey's coming...

Watch out Netflix, Mickey's coming...
Things aren’t looking great for Netflix (the video-streaming service with 148 million paid subscribers) lately.

They’re losing:
  1. Disney Movies
  2. The Office
  3. Friends…
  4. …AND US subscribers.

Not good.

For the past decade, it did well by positioning itself as the basic cable of streaming.

The price of HBO was like fancy night out, whereas Netflix was meatloaf and potatoes at home.

Though now with Amazon, AT&T, and Apple coming out with their own streaming services as a FREE add-on… Netflix is right to worry. 

And what’s even worse news than that?

Disney...

For the same price as Netflix, Disney will offer a streaming subscription that gives you their channel with HULU and ESPN+ included.

This is a classic case of revenue diversification.

With Disney’s hundreds of ways to make money beyond their streaming service, they don’t need a Silicon Valley runway to play the long game. 

So what’s the lesson here? 

“Disruptive” businesses that do not build adequate moats (barriers that prevent competition from entering their market)… will inevitably have to battle with the lumbering, albeit powerful giants. 

And often — they’ll lose. 

We’re not necessarily thumbs down on Netflix. They’re throwing $15B this year into producing their own content —and that may very well work. But Netflix is no longer a sure win. 

Keep an eye out for Disney. 

They’ve breached the moat, and there’s going to be a war. 

Stay Strong,
Tai Lopez
President, Schweitzer Alexander

 
Schweitzer Alexander
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