Disney streaming service Tag

Is Disney Planning to Bleed Netflix Dry?

Is Disney Planning to Bleed Netflix Dry?

Maybe the biggest story out of the entertainment industry this week is the news that David Benioff & D.B. Weiss—showrunners of the massively successful but ultimately disappointing Game of Thrones TV adaptation—have backed out of developing a new trilogy of Star Wars films, originally slated to debut starting in 2022. In isolation, this really only seems to be a big deal for the geek community. After all, unless you’re a big fan, why should you care who ends up developing the first Star Wars films to have absolutely no connection to the Skywalker saga, which is coming to an end this year?


Personally, though, I don’t think we can view this development in isolation. I think it must be viewed in its proper context as the latest volley in a brewing war between Disney (owner of the Star Wars franchise) and Netflix (new owners of Benioff & Wiess). It’s a war that’s been simmering since Disney announced its Disney+ alternative to Netflix back in 2018.


The first shots were fired when Netflix canceled all of its shows set in the Marvel Cinematic Universe owned by Disney (Daredevil, Luke Cage, Jessica Jones, etc.). More recent skirmishes involved Disney deciding not to allow advertising for any Netflix series (or the service itself) on its numerous TV channels (including ABC, Freeform, Fox, FX, and National

Geographic). For some reason, ESPN is exempt from this ban, and it’s not clear whether it affects A&E Networks, of which Disney owns half.


The point is, the gloves are off. Disney is gunning for Netflix. Netflix is gunning for Disney (with some minor air support from Amazon, which refuses to allow the Disney+ app on its streaming hardware).


So, what do Benioff and Weiss have to do with any of this? The statement released by the duo about their departure says it all: “There are only so many hours in the day, and we felt we could not do justice to both Star Wars and our Netflix projects. So we are regretfully stepping away.”


It helps to know that the pair was originally picked to helm a new Star Wars trilogy back in 2018. But in August of this year, it was reported that an intense bidding war between Disney, Netflix, and Amazon for the rights to own Benioff & Weiss for the next five years had finally come to an end, with Netflix coming out on top, to the tune of $250 million.


If this seems extraordinary, it isn’t. Deals of this sort are 

becoming the norm, with Netflix throwing hundreds of millions of dollars at content creators in an attempt to corner the market on exclusive content that keeps eyeballs on screens (and subscription dollars flowing). But Netflix isn’t alone. J.J. Abrams (also of Star Wars fame) just struck a similar $300 million deal with WarnerMedia, whose own HBO Max streaming service is launching in 2020.


But while the Warners and Apples and Amazons of the world are all breaking their necks to make deals of this sort, the real war continues to be between Disney and Netlix. And you could argue that Disney lost this battle.


But did it? Did it really lose? To be frank, Star Wars fans haven’t really been all that excited about Weiss and Benioff’s new trilogy since it became clear the quality of Game of Thrones took a huge nosedive once the duo ran out of A Song of Ice and Fire books to adapt for the screen. And let’s face it: If Disney really wanted to win the bidding war for the creators’ souls, it could have, given that it has the one thing Netflix doesn’t—a positive cashflow situation. Netflix hasn’t turned a real profit since 2011, after all, and is expected to go $3.5 billion into the red in 2019 alone.


It isn’t wholly out of line to speculate that Disney may be attempting to force Netflix to spend itself to death, perhaps so it can swoop in and pick the carcass clean with little to no effort. That’s certainly one of the likeliest ways for the Mouse to win this streaming war.


No matter which corporation is ultimately victorious, though (and let’s be honest here: By that I mean “if Disney is ultimately victorious,” because there’s no way Netflix can win this fight if it keeps fighting on Disney’s terms), I can’t help but think that none of this is good for us, the consumers.


Both Netflix and Disney are acting like brats. I love them both. I have subscriptions to both (I already paid for three years’ worth of Disney+ in advance, based purely on all of their original Star Wars programming). And I honestly believe the streaming marketplace needs them both to thrive. But it seems that both are determined to make sure that doesn’t happen.


One of my favorite things about the rise of streaming and the decline of commercial cinemas as the dominant source of feature films is that smaller movies like The Irishman, The Ballad of Buster Scruggs, and The Meyerowitz Stories have, at least for a while now, been given room to flourish in a way they haven’t in years. But if the streaming landscape is going to become a battleground for bidding wars like this, I worry that—just as blockbusters have squeezed independent cinema out of actual cinemas—streaming services will soon become a simulacrum of the same phenomenon. (By the way, what would you call the streaming equivalent of a blockbuster? A pipeclogger? Oh well, that’s a topic for another day.)

Dennis Burger

Dennis Burger is an avid Star Wars scholar, Tolkien fanatic, and Corvette enthusiast
who somehow also manages to find time for technological passions including high-
end audio, home automation, and video gaming. He lives in the armpit of 
Alabama with
his wife Bethany and their four-legged child Bruno, a 75-pound 
American Staffordshire
Terrier who thinks he’s a Pomeranian.

Exclusive Content Causes FOMO & Piracy

Exclusive Content Causes FOMO & PIracy

Things were back in the day that if you subscribed to cable, you could expect to watch any TV content that came along. You paid a single monthly fee to the local cable provider, and you got their slate of programming. If you wanted to expand your viewing horizons to include movies, you could either wait and rent the videotape—VHS or Beta!—or add one of the nascent premium channels like HBO, Showtime, Cinemax, or The Movie Channel. But all original programming was essentially available to anyone willing to pony up for a cable subscription.


But, boy have times changed. Today, some of the very best original content is exclusively available on paid services. This trend can be traced back to HBO’s experimentation—and success—with original programming starting in the early ‘90s

with such shows as Tales from the Crypt, Tracey Takes On . . ., and The Larry Sanders Show.


Today, however, it isn’t just one or two services offering exclusive content, but many, with more seemingly coming every day. Sure, there’s still HBO with its award-winning Westworld, Game of Thrones, True Detective, and more. And Showtime, with Ray Donovan, Billions, Homeland, and others.

Exclusive Content Causes FOMO & Piracy

Of course, you can’t forget the original streaming juggernaut, Netflix, which seemingly produces a new “must see!” show every day. In fact, Netflix has so much terrific original programming it barely seems to concern itself with providing Hollywood fare any longer. Besides its marquee titles like House of Cards, Orange is the New Black, The Crown, and Stranger Things, there’s recent epic fare like BirdboxTaylor Swift’s Reputation Stadium Tour, Roma, and Black Mirror: Bandersnatch.


Then there’s Amazon Prime, which has been quick to join the original-programming game with features like Man in the High Castle, The Marvelous Mrs. Maisel, Homecoming, and Tom Clancy’s Jack Ryan.


Beyond that you have Hulu, with The Handmaid’s Tale, 11.22.63, and Castle Rock (review coming soon), among others.


And don’t forget YouTube Premium, which is trying to get all those eyeballs that are already tuning in for free homemade videos to pay for new exclusive content. One of the first shows used to attract paying viewers was Cobra Kai, a continuation of the Karate Kid series. But the company recently announced it plans to release 50 original shows during 2019.


Even traditional network channels like CBS are getting involved in the premium streaming game. If you want to watch Star Trek: Discovery, The Good Fight, Tell Me a Story, or the upcoming Twilight Zone reboot, you’ll need a CBS All Access pass.


Plus you have Shudder offering original horror content, Apple announcing it plans to spend in excess of $1 billion to acquire and develop original content, DC Entertainment with its DC Universe streaming, and the elephant in the room: The upcoming

Disney streaming service, called Disney+. We’re not even sure what Disney+ will cost, what shows/movies it will have, or the quality of the original content, but already people are calling it the next must-have service. I mean, sure, it might be worth subscribing just to see Star Wars: The Mandalorian (shown above) and The Clone Wars.


But getting some shows isn’t always just as easy as pulling out your credit card and clicking the sign-up tab. For example, if you want to enjoy any of the original programming on the Audience network—like the fantastic Mr. Mercedes—you’ll need to subscribe to either DirecTV or AT&T U-verse—a pretty big commitment just to watch a few hours of some show.


Of course, exclusives aren’t anything new. They’ve been a part of the video-game industry since the start. For example, if you wanted to play Mario, you needed to buy a Nintendo, but playing Sonic required going with Sega. Still today, games like Halo or Forza require owning an Xbox One, while playing God of War or Spider-Man requires a PlayStation.

Back at the launch of 3D Blu-ray discs, Panasonic and James Cameron played with exclusivity, making the only way to get a copy of Avatar in 3D—the top-grossing film of all time and (arguably) the best use of 3D—by buying a Panasonic 3D TV.


This can all lead to a serious case of FOMO (Fear of Missing Out). And then anger. And then piracy.


In fact, the pirate streaming service BitTorrent is re-gaining popularity thanks in large part to  these streaming exclusives. Cam Cullen, Vice President of Global Marketing at Sandvine commented, “To get access to all of these services, it gets very expensive for a consumer, so they subscribe to one or two and pirate the rest.”


People are clearly getting sick of being nickeled and dimed (or rather $10 to $15’d) to death every time they turn around because they want to watch some new show.


While unlikely, one solution would be some kind of unified “Premier Pass” where you pay some amount per month/year and have access to everything. Let the services divvy up the money based on a percentage of usage of each service. They now have the capability to see what and how often we’re watching something, so they could split the money up amongst themselves that way, but give consumers the ability to choose from everything available. Ultimately, the best content will win out by attracting the most eyeballs.


This seems to be something the music industry is already figuring out.


According to Troy Carter, Spotify’s Global Head of Creator Services, “Exclusive audio content, specifically with albums, is not within our playbook. I think people have learned over the last six months that it’s bad for the music industry, it’s not that great for artists because they can’t reach the widest possible audience, and it’s terrible for consumers. If you wake up in the morning and your favorite artist isn’t on the service that you’re paying ten dollars a month for, sooner or later you lose faith in the subscription model.”


Even Kanye West is against exclusives. Last year, he Tweeted that streaming wars were “f***ing up the music game.”


Amen, Yeezy. Amen.

John Sciacca

Probably the most experienced writer on custom installation in the industry, John Sciacca is
co-owner of Custom Theater & Audio in Murrells Inlet, South Carolina, & is known for his writing
for such publications as
 Residential Systems and Sound & Vision. Follow him on Twitter at

@SciaccaTweets and at johnsciacca.com.

Disney Gambles Big on Star Wars Streaming

Disney streaming service

For Star Wars fans, last week was a gift that just kept on giving. Not only did we learn that Rian Johnson, director of the upcoming The Last Jedi, is launching a trilogy of films independent from the Skywalker Saga, but Disney also dropped a bomb about a new live-action TV series set in that beloved Galaxy Far, Far Away. This is huge for a number of reasons, not least because George Lucas tried and failed to create a live-action show before selling the Star Wars franchise to Disney in 2012.


Maybe more significant, though, is how Disney plans to distribute the series. It’s not coming to the airwaves, nor Netflix, which currently serves as the exclusive home to several Disney-produced Marvel series, including the highly acclaimed Daredevil and Jessica Jones. Instead, the Star Wars show—along with Disney’s films and other properties—will reach consumers’ eyeballs by way of a new streaming video service launching in 2019.


It should go without saying that I’ll be signing up for said service the minute it launches. But I think Disney is making a huge mistake. Maybe not in the short term, mind you. I think it’s reasonable to expect that Disney’s stock will get another bump and Netflix’s will take another hit as the studio moves all its films and most of its TV shows to its new, exclusive platform.


And for what it’s worth, apparently Disney has no plans to evict Luke Cage and the rest of the Defenders from the only home they’ve ever known, so that’s a plus.


I can’t imagine many if any people will dump Netflix entirely for DisneyFlix or whatever it ends up being called. But I still think this move is a net-negative for the streaming-video industry, and for consumers in particular. Why? Because we’re already seeing people approaching a breaking point with the continued fragmentation of the streaming market.


In other words, I think we’re reaching Peak Subscription Saturation. For me, subscribing to this new Disney service just to get my weekly Star Wars fix likely means I’ll be dumping Hulu. And if I were also a Star Trek fan subscribing to All Access just to watch Discovery, I’d likely be looking at dumping CBS’s streaming service instead. (Spare me your whining, Trekkies—Star Wars is just better and you know it.)


The simple fact is that most people are cutting the cord because of the value proposition. Expensive cable-TV bundles that force you to pay for ESPN if you want to watch Cartoon Network are increasingly becoming a breaking point for most people.


Could the exact opposite problem start to hurt the streaming market? Could we literally end up with too much choice instead of too little? It’s entirely possible. After all, who wants to pay $6 or $8 or $10 a month just to watch one TV show? Are you willing to pay $100 a month or more just to have all the streaming apps you would need to subscribe to if all the studios and content providers start their own services? I know I’m not.


In the end, I have no doubt Disney’s new streaming service will be successful. Playing the Star Wars card is pretty much the same as having an “I Win” button. But if this streaming fragmentation continues, I also know this just as surely: We—the geeks, the nerds, the regular cinephiles, and the TV junkies—will be the biggest losers.

—Dennis Burger

Dennis Burger is an avid Star Wars scholar, Tolkien fanatic, and Corvette enthusiast
who somehow also manages to find time for technological passions including
high-end audio, home automation, and video gaming. He lives in the armpit of
Alabama with his wife Bethany and their four-legged child Bruno, a 75-pound
American Staffordshire Terrier who thinks he’s a Pomeranian.