There is little doubt that, in the United States, Netflix has become the standard for watching movies on the Internet.
The subscription service is responsible for a third of all Internet traffic during peak hours, dwarfing that of online piracy and other legal video platforms.
It’s safe to assume that Netflix-type streaming services are among the best and most convenient alternative to piracy at this point. There is a problem though. The whole appeal of the streaming model becomes diluted when there are too many ‘Netflixes.’
Yesterday, Disney announced that it will end its partnership with Netflix in 2019. The company is working on its own Disney-branded movie streaming platforms, where titles such as Frozen 2 and Toy Story 4 will end up in the future.
Disney titles are among the most-watched content on Netflix, and the company’s stock took a hit when the news came out. In a statement late yesterday, Disney CEO Bob noted that the company has a good relationship with Netflix but the companies will part ways at the end of next year.
At the moment no decision has been made on what happens to Lucasfilm and Marvel films, but these could find a new home as well. Marvel TV shows such as Jessica Jones and Luke Cage will reportedly stay at Netflix
Although Disney’s decision may be good for Disney, a lot of Netflix users are not going to be happy. It likely means that they need another streaming platform subscription to get what they want, which isn’t a very positive prospect.
In piracy discussions, Hollywood insiders often stress that people have no reason to pirate, as pretty much all titles are available online legally. What they don’t mention, however, is that users need access to a few dozen paid services, to access them all.
In a way, this fragmentation is keeping the pirate ecosystems intact. While legal streaming services work just fine, having dozens of subscriptions is expensive, and not very practical. Especially not compared to pirate streaming sites, where everything can be accessed on the same site.
The music business has a better model, or had initially. Services such as Spotify allowed fans to access most popular music in one place, although that’s starting to crumble as well, due to exclusive deals and more fragmentation.
Admittedly, for a no-name observer, it’s easy to criticize and point fingers. The TV and movie business is built on complicated licensing deals, where a single Netflix may not be able to generate enough revenue for an entire industry.
But there has to be a better way than simply adding more streaming platforms, one would think?
Instead of solely trying to stamp down on pirate sites, it might be a good idea to take a careful look at the supply side as well. At the moment, fragmentation is keeping pirate sites relevant.