Netflix vs Disney Streaming Convo

[jlee003]

I must say i enjoyed the streaming conversation when i listened to the news yesterday, but had a few notes:

1. you all quoted cable bill as if it was a direct correlation to streaming service prices. wouldnt your primary bill also include your ISP? NETFLIX nor Disney are ISPs, so you will still have an internet bill.
2. Netflix started out as a web service aggregating content. They have moved successfully into the content creation world, but are not even in the ball park of the content IP power house of disney.
3. The distribution of the content is really only as good as the ISP in between, so preference on the service comes down to the user interface. To me this is a subjective decision and we havent seen the UI of new Dis streaming service.
4. i think the biggest impact here is the pressure on the triple play companies like spectrum, ATT (direct tv), Verizon. We are already seeing acquisitions by these companies in relation to content creation. ATT has recently placed a bid to buy time warner content (not internet service). This would give them HBO, CNN...etc. As an ISP, this is a huge advantage for end to end business model. I think that this is where the huge impact of the disney announcement truly lies. I actually believe this could hurt netflix as providers branch into their business model with their own offerings in fresh content. DirecTV via ATT network launched its own internet streaming service as an add on for subscribers recently, but also as a solo service.


All in all it is an interesting market right now. Feels like a replay of blu-ray and hd-dvd (for you older folks think VCR vs BetaMax). Exciting for consumer either way.

 

[NeuroCindy]

I don't think it's like Bluray/HD-DVD. I don't see Netflix or Disney losing. A huge number of people keep netflix for non-Disney content. A huge number of people will subscribe to Disney's service. Their numbers may ebb and flow, but I don't think either will go under.

 

[jlee003]

i dont believe they will go under, but like what was said on podcast, if each individual content originator starts a service and you are paying 10 dollars here, and 10 dollars there, that model isnt very appealing to long term market growth.

The point i was making is that the ISPs are involved here as well. you cant talk about the streaming services in a vacuum. since cable companies are starting their own streaming services at a comparable price point for "on demand" content, all of these services are going to be more about the content than the service. In that model, the question is can the market sustain that many independent services.

 

[pjweaver]

I am waiting on a giant like Comcast to step in and make these streaming services part of their programing. Where I live we have either Comcast, Verizon, or the satellite companies that provide both TV and internet services as one package. How long before they contract with netflix, CBS streaming, or Disney's online content, or all of them, to bundle pricing.

It was in my lifetime that HBO came out with the idea of premium cable; I see this as the next step in that evolution. Each of these major steps are happening closer together, and I plan to embrace Skynet and their world domination programs before I become a band wagon jumper.

 

[disneysteve]

1. you all quoted cable bill as if it was a direct correlation to streaming service prices. wouldnt your primary bill also include your ISP? NETFLIX nor Disney are ISPs, so you will still have an internet bill.

I thought the same thing, especially when Pete talked about how high his cable bill is because of his internet needs for the studio. That's a totally separate issue. I'm sure that most of his bill is internet access, not TV access.

2. Netflix started out as a web service aggregating content.

Actually it started as a mail-based DVD rental service.

 

[pjweaver]

Actually it started as a mail-based DVD rental service.

How do you mail something without the internet?

I do remember this, Blockbuster and Netflix had a short lived rivalry. Now when you go to your local Blockbuster all you can rent are used hypodermics and rats.

 

[DLM1980]

I think what's going to happen is you won't see continual subscribers. $10 here, $10 there, $10 everywhere is gonna eventually push people to pirating things again if one has to subscribe to all these different services.

If my internet provider can offer me a no-go against my data bundle to pay $20 a month for my choice of 5 streaming services then maybe it would be worth it, but if I have to pay for my internet and pay for 2,3,4+ separate streaming services forget it, I'd go without

I'm still of the mindset that I want to "own" my stuff, so I don't spotify, or apple music. I have pandora and Prime Music (because of my Prime membership) but don't use them. Now if these streaming services offered "Stores" in addition to a streaming side of the service, where I could buy once, the content I want and stream just that as many times as I want for the length of the service then sign me up for that, but to continually have to give money monthly just to watch older shows or what not, forget it.

 

[disneysteve]

I'm still of the mindset that I want to "own" my stuff

I feel that way a bit more with music than with video. If I'm watching a TV show online, I have no need or interest in ever owning it. I'm only going to watch it once. A streaming service is perfect for that. Music is different because I will listen to the same songs or albums over and over again so owning makes more sense.

One thing I haven't seen anyone mention is that cable companies typically price internet service much lower when bundled with TV and/or phone service. If you drop cable TV, you will pay a lot more for your internet, so you don't save as much as you expect by cutting the cable.

 

[DLM1980]

I feel that way a bit more with music than with video. If I'm watching a TV show online, I have no need or interest in ever owning it. I'm only going to watch it once. A streaming service is perfect for that. Music is different because I will listen to the same songs or albums over and over again so owning makes more sense.

One thing I haven't seen anyone mention is that cable companies typically price internet service much lower when bundled with TV and/or phone service. If you drop cable TV, you will pay a lot more for your internet, so you don't save as much as you expect by cutting the cable.

TV shows maybe not, Music most definitely, but movies, I want to own too.

I have a unique situation we just moved to Florida and my partner got a job promotion within AT&T so we get DirecTV for $10 (basically we are paying for the boxes and the service is free) however AT&T doesn't have any internet service here in Tallahassee so we have Xfinity. I just need the internet and after a long todo for the speed I want at a price thats decent I apparently have a Streaming TV/Internet bundle with them for $25 a month which otherwise is $66 a month just for the internet, so go figure!

We used to get U-Verse/Internet/and Home Phone for $109 a month

 

[disneysteve]

I apparently have a Streaming TV/Internet bundle with them for $25 a month which otherwise is $66 a month just for the internet, so go figure!

Exactly. People often think they'll save a bunch of money by dropping cable TV and just keeping internet but it doesn't work that way.
We "upgraded" our Xfinity service about a year ago. We got 100+ more channels, faster internet, and phone service and our bill went down. We don't even use the phone service but it was cheaper to have it than to not have it.

 

[Pluto80]

In the UK, we've had our own Disney streaming/download service for the last couple of years. It also has music, games and books. It's really good! They call it 'Disney Life'.

 

[pjweaver]

Exactly. People often think they'll save a bunch of money by dropping cable TV and just keeping internet but it doesn't work that way.
We "upgraded" our Xfinity service about a year ago. We got 100+ more channels, faster internet, and phone service and our bill went down. We don't even use the phone service but it was cheaper to have it than to not have it.

The bundle or triple play is what I was talking about. The way verizon and comcast bundle services could be expanded to include streaming service since I already buy their internet and cable.

 

[SorcererHeidi]

And I always wished they'd let you choose what "extra channels" you want bundled into their "packages" besides basic or expanded basic. Like say "Pick 10 channels, pay an extra $100) - but - YOU pick, not THEM.

 

[aprincessatlast]

Did not see the podcast but have seen many conversations about this. So many are talking about the bundling and comparing the service to cable. It is more than that for some of us.

We have cable because as was mentioned it is cheaper for the high speed internet yet we never turn on the cable. The box just sits there unplugged. For us it comes down to commercials. I have no interest in watching a show with 2-3 minutes of commercials every 5 minutes. For me that and content is the biggest selling point in streaming services. I am also able to watch shows from all over the world and that is something I do not get with cable.

 

[NeuroCindy]

Did not see the podcast but have seen many conversations about this. So many are talking about the bundling and comparing the service to cable. It is more than that for some of us.

We have cable because as was mentioned it is cheaper for the high speed internet yet we never turn on the cable. The box just sits there unplugged. For us it comes down to commercials. I have no interest in watching a show with 2-3 minutes of commercials every 5 minutes. For me that and content is the biggest selling point in streaming services. I am also able to watch shows from all over the world and that is something I do not get with cable.

This! I do not EVER watch live TV, except for baseball games. I hate it. I can't stand the constant commercials. I'll watch something on the DVR or stream something instead.

 

[disneysteve]

And I always wished they'd let you choose what "extra channels" you want bundled into their "packages" besides basic or expanded basic. Like say "Pick 10 channels, pay an extra $100) - but - YOU pick, not THEM.

Customers have asked for this for years. The problem is that paying for a pre-set lineup provides funds for all of those channels. If people would be allowed to pick and choose, all of the money would flow to the most popular channels and some of the more niche stations would die. While that would probably be a good thing in some cases, we'd also likely lose a lot of cultural and educational programming that nobody coughed up money to pay for.

 

[SorcererHeidi]

This! I do not EVER watch live TV, except for baseball games. I hate it. I can't stand the constant commercials. I'll watch something on the DVR or stream something instead.

Agree, Cindy. Even if I decide to watch something "live", I've pretty likely already DVR'd it, and purposely wait at least 10-20 mins past start, so I can FF through commercials. When I do watch something totally live, like say Jeopardy, I always get ticked off - and - more likely than not - "twitch" on the FF button. LOL

 

[DLM1980]

Agree, Cindy. Even if I decide to watch something "live", I've already DVR'd it, and purposely wait at least 10-20 mins past start, so I can FF through commercials. When I do watch something totally live, like say Jeopardy, I always get ticked off. LOL

It's funny what the DVR has done to us. Back in the day you just watched it as it happened, then came the VCR and if you managed to stop your VCR from blinking 12:00 you would record your show, and when it was time to skip a commercial you'd play that back n forth game of FF'ding too far so your REW back too much, and FF again and then REW and finally say "screw it, I'm watching from here". Then game the DVR and TiVO's 30 second skip button 3 presses of that button and you were through the commercial.

Problem with the DVR is I'll sit and watch a show and forget that its recorded so I end up sitting through the commercials anyways!

 

[SorcererHeidi]

It's funny what the DVR has done to us. Back in the day you just watched it as it happened, then came the VCR and if you managed to stop your VCR from blinking 12:00 you would record your show, and when it was time to skip a commercial you'd play that back n forth game of FF'ding too far so your REW back too much, and FF again and then REW and finally say "screw it, I'm watching from here". Then game the DVR and TiVO's 30 second skip button 3 presses of that button and you were through the commercial.

Problem with the DVR is I'll sit and watch a show and forget that its recorded so I end up sitting through the commercials anyways!

ROTFL!! And - as I edited my post to reflect - I have to say I'm just the opposite - I'll forget I'm watching live (and not Memorex - hopefully some of you around here are old enough to remember that, and catch it!)

 

[disneysteve]

We've never owned a DVR and now, with on-demand, Netflix, and online streaming, I don't even see the point. We can pretty much watch anything we want, anytime we want, from any device we happen to have with us.