With the blink of an eye, the holiday season will be upon us. For many that means kids trick or treating, the last chance for apple picking and enjoying the red and gold fall foliage. As the crisp fall air rolls in, it brings with it the reminiscing of fond memories and excitement for creating new ones. For most, this is a magical time of year, unless you are Netflix (NFLX) and you are slowly feeling the icy cold reality of having the carpet taken right out from under you.
While most of us are adjusting our fantasy football brackets and trying to eat our children’s candy before they find it (guilty as charged), the streaming giant will be counting the days until more competitors take a bite out of their footprint. Its reported that in the coming weeks, “Apple Inc.’s (AAPL), new streaming video service … is set to launch on Nov. 1, while Walt Disney Co.’s (DIS), Disney+ will launch on Nov. 12.” (MarketWatch)
According to reports, Disney has inked a deal with Verizon which might just be the final nail in the coffin. Verizon (VZ) announced that “… it will offer 12 months of Walt Disney Co.’s new streaming video service Disney+ to all Verizon wireless unlimited customers for free. [It] will also be offered to Verizon’s new Fios Home Internet and 5G Home Internet customers for 12 months.” (MarketWatch).
This report comes as Netflix tries to stop the bleeding by announcing Monday, “59 new offerings next month, including the arrival of 43 original programs.” Unfortunately, this might be too little too late. This deal with Verizon will allow those on the fence about switching, the perfect opportunity to try Disney with no risk and at a lesser price. Now that Disney will keep its own content and not release to other streaming services, Disney might be the only place to watch movies from Marvel Studios and Lucas Films.
If Netflix wants to stay in the game, its time they grab a pumpkin spice latte and start taking a hard look at similar deals that will keep customers and entice more to sign on.
Dry Powder 