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Netflix: Big Challenges in Its Competition with Media Giants

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Netflix’s big challenge

Netflix (NFLX) might not struggle to compete with media conglomerates like Disney, NBCUniversal, and Time Warner. The companies are launching their own streaming services soon. However, one of the biggest fallouts from the companies is that they will strip off their content from Netflix or charge Netflix a large fee to acquire their content.

Disney’s content, including Marvel movies, will be leaving Netflix later this year. Disney is launching its own streaming service in November. Time Warner charged Netflix $100 million to keep the popular sitcom “Friends” on Netflix.

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“The Office” is leaving Netflix in 2021

Netflix’s top show, “The Office” is leaving Netflix in 2021. Comcast’s (CMCSA) NBCUniversal announced that the show will be featured on its own streaming service.

Netflix’s main problem with the competition it faces with media companies is that if the latter’s content isn’t leaving Netflix, the company will have to pay a large fee to keep popular shows.

Netflix has been ramping up its original content library. The company has spent tens of billions of dollars over the last few years. Netflix has a library of non-English content, which the media companies might not have.

However, Netflix will face challenges to keep growing its domestic subscribers.

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