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Can Disney and WarnerMedia Dent Netflix’s Streaming Dominance?

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Competition in the streaming space

Netflix (NFLX) got a downgrade from Buckingham on Friday, as it faces stiff competition in the streaming space from established players such as Amazon’s (AMZN) Prime Video, Hulu, AT&T’s (T) HBO Now, and Alphabet’s (GOOGL) YouTube. Plus, the growing popularity of video streaming services has attracted many new players to the space.

To combat the competition, Walt Disney (DIS) and AT&T’s WarnerMedia also plan to launch streaming services in late 2019. Apple is also planning to roll out its online video streaming service in 2019. Comcast’s (CMCSA) NBCUniversal is also debuting with its streaming service in early 2020.

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Disney+ and WarnerMedia

WarnerMedia’s streaming service might threaten Netflix, as its content would include hit movies like Batman and Harry Potter, as well as popular TV series such as Friends from its Warner Bros. studio.

Disney’s video streaming service will be called Disney+ and will stream Disney-branded movies and programming. Disney+ streaming service will also roll out original films and premium TV content including all theatrical releases from Disney banners including Disney, Pixar, Marvel, Star Wars, and National Geographic, which might dent Netflix’s dominance. Since Disney will begin its own streaming service, it will stop streaming movies on Netflix in 2019.

In addition, the completion of Disney’s acquisition of the media assets of 21st Century Fox (FOXA) will give Disney a 60% stake in online Internet service provider Hulu, which could put further pressure on Netflix.

Despite the competition, subscribers for Netflix are expected to reach 65 million in the US in 2020, according to Statista. Other streaming services such as HBO Now, DirecTV Now, Dish Network’s (DISH) Sling TV, and Sony’s (SNE) PS Vue are projected to have 5.6 million, 5.5 million, 3 million, and 0.5 million subscribers, respectively, in the US in 2020.

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