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Disney's Entry into the Streaming Battle
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Reference: DARDEN-S-0376-E
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Number of pages: 12
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Publication Date: May 19, 2022
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Source: Darden University of Virginia (USA)
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Type of Document: Case
Description
As of 2019, Netflix is the market leader in the streaming space, spending $17 billion per year on original content. Its award-winning content coupled with its technology of delivery and its highly successful recommendation algorithm in which over 80% of subscribers trust are the current gold standard. While Disney+ and Netflix will certainly be competitors, the market is shaping up into a battle for the “single-screen” as a person can only consume the content from one-screen at a time. This means that any content consumed in this manner, including Fortnite and other video games, is a competitor. It will be interesting to watch how consumers choose to balance all the options at their disposal. Instructors will note that this analysis does not account for COVID-19, as that was an unexpected event. The case is set in 2019 without the foreknowledge that the pandemic will occur.