The streaming wars are heating up. The kitchen is jam-packed and the number of cooks looking to add some pizzazz to the menu is not slowing down anytime soon. Only a few short months ago, subscribing to either Netflix or Hulu seemed sufficient for most streaming viewers. Now, with new players entering the field and drastic lineup changes soon taking place, viewers will need to reevaluate their arsenal of streaming platforms.
In this post we’ll dive into the streaming world’s newest players, review likely changes to platform catalogues, and speculate on the shifting OTT landscape.
Who are the new players?
Disney+
- Launch date – November 12, 2019
- Price – $6.99/mo, $69.99/yr, or available as a bundle with Hulu and ESPN+ for $12.99/mo
- Ad-supported? – No
- Why do we care?
- Subscriber numbers:
- Released one month ago, Disney+ is already making a significant splash. The service acquired a staggering 10 million subscribers the same day it launched, immediately blowing past Disney’s own year-end forecast of 8 million. It’s difficult to know how much of this was driven by their seven-day free trial, but either way it’s clear that demand is high.
- The catalogue:
- Given that Disney is a massive media conglomerate, subscribers will have access to nearly the entire libraries of Walt Disney Studios, Pixar, Marvel, and Star Wars. Furthermore, Disney is removing these catalogues from other streaming services, making Disney+ the exclusive platform for these beloved brands. If these legacy catalogues aren’t catching your eye, the new original programming may draw you in. The Star Wars spinoff The Mandalorian is already critically acclaimed and they’ve formally announced eight original Marvel series!
- Bundle opportunities:
- You’re probably thinking Disney+ sounds great for a family with children, but does an adult in their thirties really need this much nostalgia? Well this is where things get interesting. Disney owns Hulu and ESPN+! And for the enticing price of $12.99 per month you can have access to all three (Hulu is ad-supported). This is a convenient option for viewers seeking a diverse library at a manageable cost with little hassle.
- Subscriber numbers:
Apple TV+
- Launch date – November 1, 2019
- Price – $4.99/mo
- Ad-supported? – No
- Why do we care?
- A unique approach to content:
- With all of the buzz surrounding Disney+’s launch, you may be shocked to learn of Apple’s uncharacteristically under-the-radar release of Apple TV+ less than two weeks prior. Apple TV+ is shaking things up by focusing solely on original content, leaving the other major players to fight over the valuable licensed series. While the platform only launched with eight initial programs, they’re promising new releases each month.
- The price:
- Apple is undercutting all other paid streaming services with the affordable price of $4.99 per month. While very appealing on the surface, one must keep in mind that with no licensed content, the library is exponentially smaller than its competitors. Apple has promised to deliver series with A-list casts, as they have with Golden Globe-nominated The Morning Show, but it will be interesting to see if they can deliver a Game of Thrones-type smash that encourages viewers to pay for the limited catalogue.
- It’s Apple:
- Apple TV+ is starting out small, but at the end of the day it’s still an Apple product, and it’s their first real foray into the streaming world. They likely have a few surprises up their sleeves and it’s worth keeping a pulse on the platform’s evolution.
- A unique approach to content:
HBO Max
- Launch date – May 2020
- Price – $14.99/mo
- Ad-supported? – No
- Why do we care?
- WarnerMedia:
- HBO’s newest streaming service HBO Max has a lot going for it. While you’re likely familiar with HBO’s premium catalogue, you may not be aware that HBO is owned by WarnerMedia. What does this mean? Well, it means the service will also feature content from many other brands under the WarnerMedia umbrella, including CNN, TNT, TBS, Cartoon Network, and DC. Not only will you have immediate access to HBO hits like Succession, Barry, and Curb Your Enthusiasm, but you’ll also have access to licensed series from other networks, blockbuster movies, and new exclusive originals. It’s about as well-rounded as it gets for an on-demand service.
- Syndicated favorites:
- HBO Max is gearing up to disrupt the streaming landscape with its WarnerMedia backing. The platform will snag Netflix’s second most popular licensed show, Friends, as well as rewatchable favorites like South Park, The Fresh Prince of Bel-Air, and The Big Bang Theory.
- More content, same cost:
- If you already subscribe to HBO NOW, you may be wondering what the catch is. Isn’t this just HBO NOW for the same price with significantly more content? The answer is yes. And shockingly there is no catch. The general thinking is that HBO can add millions of incremental subscribers by clearly flaunting the added value of the new content when compared to HBO NOW. We’re excited to see how this will play out for them.
- WarnerMedia:
NBC Peacock
- Launch date – April 2020
- Price – Expected to be free to everyone
- Ad-supported? – Yes
- Why do we care?
- It’s free:
- NBC’s forthcoming service, Peacock, set to launch in April, looks to break the mold with a free ad-supported model. This will be the first free on-demand streaming service from a major network and will serve as a guinea pig for this approach. It is unclear at this time whether or not there will be a paid ad-free version available.
- Lineup disrupter:
- Netflix and Hulu lose big again, as NBC will reclaim two of their most popular shows The Office and Parks and Recreation, the former of which was Netflix’s most watched show of 2019. Snatching The Office did not come cheap though, costing NBC ~$500 million for a five year contract.
- New originals:
- Peacock will not only have past and current NBC staples, but the company is heavily investing in a slew of new original content. This includes Battlestar Galactica and Saved by the Bell reboots, as well as new series from Mike Schur, creator of The Good Place, and Lorne Michaels, creator of Saturday Night Live. There are even rumors swirling about a reboot of The Office.
- It’s free:
Key Takeaways
Shifting lineups and the power of the classics
Four new major players are entering the streaming ecosystem. A lot of movement is taking place, and much of it is not very cut and dried. The largest takeaway is that your current streaming services’ lineups will undoubtedly change over the next few years, so it’s best not to get complacent.
While each of the new platforms are investing heavily in original content, history has proven that the real value lies in the long-standing rewatchable classics. When considering a streaming service, the majority of viewers are first seeking reliability. As a baseline, they want access to the series they feel comfortable viewing at any time. As it turns out, the new and original content is really just icing on the cake.
In 2015, Hulu paid ~$130 million for an exclusive six-year deal for Seinfeld. At the time, this was considered an absolutely astonishing figure. Fast forward to today and this deal is a steal. Shows like Seinfeld are table stakes for continued subscriber growth and platforms are eager to pay up. As previously mentioned, NBC recently struck a ~$500 million five-year deal for The Office. HBO Max paid ~$500 million to grab South Park from Hulu and paid ~$425 million to take Friends from Netflix. Netflix, losing its two highest streamed shows, among several others, has attempted to combat the onslaught by signing their own ~$500 million five-year deal for Seinfeld.
These are only a few examples of the many recent changes, but the point is, rewatchable classics are tremendously valuable and are bringing in far more viewers than original content is. Given the short lengths of many of these licensed contracts, you can expect these content shuffles to happen continuously. If you’re looking to stick with your favorite shows, you’re going to need to pay close attention.
Ad-Support
One of the biggest gripes viewers currently have with the broadening VOD landscape is the increasingly high cost of managing multiple subscriptions. While Peacock is the only one of the four new players to offer a free ad-supported model, we anticipate more offerings in the future. Ad-supported models are nothing new. Players like Vudu, Xumo, and Pluto TV have been doing it for years, and we’re starting to see them pick up steam. Since being acquired by Viacom in January 2019, Pluto TV has gained nearly 8 million new users.
Viewing trends are changing. Households cutting the cord want to make sure that the money they’re saving from ditching cable isn’t being funneled directly into another service. Most viewers are willing to pay for two premium services. Subscribing to every new platform simply isn’t feasible, so viewers are happy to subsidize their paid services with additional free services, even if it requires them to watch a few commercials. As Netflix and Hulu continue to lose licensed content, it is comforting to have a few free alternatives.
Final Thoughts
With several media powerhouses entering the streaming game, viewers will need to make some tough decisions. Netflix and Hulu are no longer the obvious leaders they once were. When evaluating your streaming options, carefully review what each platform has to offer. But bear in mind, just because a service fits your needs today doesn’t mean there won’t be drastic changes tomorrow.
This article was written by Zachary Atlas, product marketing manager at SpotX