We have seen all kinds of wars in the technology industry such as smartphone war, processor war and software war as well. However, we did not have a streaming war till now but we do have one now. Basically streaming war is a war in which different streaming services fight for the battle and the fittest stays in the market. Talking about streaming services, one of the bests in the market right now is Netflix. However, that will not remain so for long as Disney and Apple have entered this segment with their Disney+ and Apple TV+ services respectively.
While Apple says that they are not necessarily trying to kill competition, we feel that they will do exactly that. It is hard to imagine that a user will want to pay for all the different streaming services and rather settle for one which is the best. For this reason, people talked about how Netflix will lose out on the Disney+ and Apple TV+ launch because its shows will be taken away by Disney. On the other hand, Apple is expected to have great shows exclusive to their platform which people will like to subscribe to.
However, Netflix never admitted that they are worried about the competition. Also, there is no reason for them to admit about being worried as well because that would send the wrong impression in the market for their investors. Reporting their quarterly earnings, Netflix executives said that “The launch of these new services will be noisy,” and added that “There may be some modest headwind to our near-term growth, and we have tried to factor that into our guidance”.
Netflix Chief Executive added that “Fundamentally, it is more of the same, Disney is going to be a great competitor, Apple is just beginning, but they will probably have some great shows too. But again, all of us are competing with linear TV. We are all small relative to linear TV.”