Netflix's monopoly over the streaming industry comes to an end but the company doesn't seem to be surprised by the new competition from services like Disney Plus. In fact, Netflix is shocked to learn that other Media giants took so long to enter the world of streaming.
Earlier this Tuesday, Disney officially launched its streaming service in Canada, the US and Switzerland. Though Disney Plus initially had glitch issues due to an unexpected increase in demand, it also led to the service attracting up to 10 million users to sign up.
Disney's success resulted in the opposite reaction to Netflix which was reported to lose close to 25% subscribers. But surprisingly, Netflix remains unshaken by the competitors according to its Chief Creative Officer.
Netflix's CCO Ted Sarandos addressed the launch of Disney Plus and its subscriber increase during his appearance at Paley Center's International Council Summit in New York. Moreover, the company intends to face the competition head-on and is unfazed to the new changes to the market.
"We've been competing with Disney and all these other folks who are coming into this from the beginning," Sarandos said. "For us, nothing really changes. We've always been customer-first and we don't really get distracted by the competition. We figured at some point everyone would get into this business."
Sarandos still complimented Disney as a "great storyteller and a hugely successful company." But nonetheless, the CCO was still surprised that Dinsey, WarnerMedia and others have delayed launching their own services for so long.
"[I'm] frankly surprised it took Disney and other people this long to go down this path. It's a hard change," he continued. "These companies that have been built on making and selling content to other people, can they actually make more money or do better in business selling it directly to the consumer? ... It's a hard bet, and it's a bet-the-farm one."
Unlike Netflix, Disney boasts a massive library of IPs like Star Wars and Marvel. The Mouse House is already developing several limited series' based on those properties. But Sarandos isn't sure if that's a "luxury or a trap." Do you think Netflix will face downfall due to other emerging services? Stay tuned for more updates.