Disney has announced they will be offering their new streaming service, Disney+, in a bundle with Hulu and ESPN+. The package will be priced at $12.99, which threatens Netflix’s basic subscription at the same price. Netflix had a Disney contract earlier this year but was discontinued when Disney decided to start their own streaming service.
Cable is the entity that continues to be the most threatened in this situation. The theme of the future seems to be shifting to an on-demand T.V. watching experience. Why would customers pay for 350 channels when they only watch 6? We have seen in the past that HBO has started it’s own on-demand streaming services. Consumers are also looking to watch things on different devices, like iPads, iPhones, and Android devices. About 60 years ago, there were only 3 or 4 available channels to watch. Cable came out in the 1980s and provided the general public access to a multitude of channels. This kept growing until there was a “buffet” of channels available to the consumer. As time goes on, we are moving back towards the mindset of needing less channels to fulfill our television needs. It is more economically friendly to subscribe to a streaming service or two if you are not looking to watch more than a few shows.
A lot of organizations are jumping on the bandwagon of distributing themselves to the consumer. As a business owner, you will want to find a good way to be direct to your customers and provide value for them that is not bundled in with another company’s product.
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