Disney & CBS Look to Challange Netflix

Two major networks are looking to compete with Netflix and steal, at least part of their audience. First CBS announced it’s own streaming service with the launch of the new “Star Trek” TV series.

First You Have CBS

CBS is moving fast in the streaming channel arena, with plans to expand CBS All Access to Canada and other international markets by next year.

CBS is also working on the launch of a streaming sports channel patterned after its CBSN digital news service. The movement in the over the top (OTT) market comes as the CBS All Access and Showtime stand alone services are expected to exceed 4 million subscribers in total by the end of this year.

The sports channel is in the early stages of development and doesn’t yet have a name.

The decision by CBS to relaunch the “Star Trek” franchise on CBS All Access rather than on the CBS network or Showtime, or even to sell it to Netflix in the U.S., was a calculated decision to grow the streaming service. “Star Trek: Discovery” – the first new TV series in the “Trek” canon in 11 years, is set to premier on September 24. In an obvious effort to attract users to their new platform – through Star Trek – CBS will premier the first episode on their regular CBS network with the second episode (part 2 of a cliffhanger) airing immediately afterward – exclusively on CBS All Access. In other words if you want to keep watching the new Star Trek – sign up with CBS All Access.

As you can see by watching the quality of the “Star Trek: Discovery” trailer the mission of these networks to launch their own streaming service, with new & exciting content is no joke – and could, potentially be a boon for all of us.

Then You Have Disney

Disney has now officially announced that it’s making its own Netflix competitor, a streaming service that will air original Disney movies and TV shows. In addition Disney announced that it also plans to launch a second Netflix-like offering that will deliver sporting events.

It’s not surprising that Disney wants to directly compete with Netflix and other streaming services, given that more people opt to ditch traditional cable in favor of online entertainment.

The Disney TV streaming service will only launch in 2019, while the ESPN-based service would be available as soon as next year.

Disney also reported that it will terminate the licensing agreement for new titles beginning with the 2019 calendar year.

This means that post 2019 if you want to watch Disney movies and show you will need to subscribe to their exclusive channel.

What All of this Means

How we watch television is rapidly changing. Networks like ABC, CBS and NBC are trying to find ways to remain relevant in this ever changing landscape. Where commercial advertisements were once king now networks are looking to the audience to “subscribe” in order to watch the content they enjoy. At the same time, because of the success of pay-cable TV shows like “The Sopranos” and “Game of Thrones” audiences now expect much more from their television dramas. Commercial interruptions are a disaster to good TV – and the networks know this. We are well on the way to the extinction of relevant – free – over the air TV.

In fact so much has changed in the television landscape that Netflix is now almost seen as “old school” by networks like CBS and Disney. Ask yourself this question. Why should networks, with immense libraries of (old & loved) TV content and the resources to create new content sell to a “middle man” when they can create their own streaming services and reap 100% profits as opposed to sharing their earning with Netflix or Hulu.

The only question is can they do it – and be successful?

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